LCWA and capital.

Bazzalona13295

The latest in a series of questions regarding UC.......I've always thought I 'understood' finances but not with UC!

My wife is about to get her first LCWA payment (hopefully 3 months worth?), but in the near future we may be looking to move house as stairs are becoming an ever increasing problem.

We couldn't afford to buy anything vastly different from our current property, so we are possibly looking to rent.......I've always been against renting however my wife's future health isn't clear so what the hell.

But while I know selling up will cancel any UC due to capital, does it affect the LCWA element?

Won't change our minds tbh but its best to know all the factors.

Many thanks in advance!!

poppy12345

If you have savings/capital of £16,000 and over then your UC will end and this includes the LCWRA element because it's part of UC.

calcotti

Bazzalona13295 said: My wife is about to get her first LCWA payment (hopefully 3 months worth?), ..

For the avoidance of doubt. The LCWRA element is only payable 4 months after the health condition is notified. You then get the monthly addition in each payment. There is no entitlement to the element during that 3 month waiting period.

calcotti

When did your wife last work? If she was working in 2017-18 and 2018-19 tax years she may be able to claim new style ESA which is not means tested and would pay £74.35 initially and then £113.55/week if she is in the Support Group (which she will be if she has LCWRA).

Bazzalona13295

calcotti said:

When did your wife last work? If she was working in 2017-18 and 2018-19 tax years she may be able to claim new style ESA which is not means tested and would pay £74.35 initially and then £113.55/week if she is in the Support Group (which she will be if she has LCWRA).

She was working throughout those tax years yes.

Bazzalona13295

calcotti said:

When did your wife last work? If she was working in 2017-18 and 2018-19 tax years she may be able to claim new style ESA which is not means tested and would pay £74.35 initially and then £113.55/week if she is in the Support Group (which she will be if she has LCWRA).

And that would not affect her UC?

calcotti

Bazzalona13295 said:

calcotti said:

When did your wife last work? If she was working in 2017-18 and 2018-19 tax years she may be able to claim new style ESA which is not means tested and would pay £74.35 initially and then £113.55/week if she is in the Support Group (which she will be if she has LCWRA).

She was working throughout those tax years yes.

In which case if your UC might end I suggest she claims new style ESA. She will need to have been earning more than £113/week in 2017-18 and £116/week in 2018-19 to satisfy the NI conditions. If she does it while you are still getting UC there will be no gain because the ESA will be deducted from the UC payable. However if you may come into capital it is sensible to claim the ESA because the ESA would continue even if you are excluded from UC. To be assessed on the 2017-18 and 2018-19 years she needs to make the claim during 2020. Claims made after the first Sunday in 2021 will be based on 2018-19 and 2019-20.
https://www.gov.uk/guidance/new-style-employment-and-support-allowance

Xbigman

Selling a property you own and then renting whilst on benefits is a minefield. You are far better off staying in your own home. Have you considered a stairlift? 


Darren

calcotti

Has your wife looked at possible entitlement to PIP? https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/