Moving to new LA-ESA and Universal Credit

Caval1er

Hi, hope somebody could please advise me as I'm worried, have done lots of research,  but not clear on what will happen..
I started claiming ESA income related and contribution in about 2013. In 2017 I inherited money which has taken me over the savings threshold and since 2017 I have only been receiving contribution based ESA and Pip support group. I am moving to a new local authority and plan to spend most of what's left of inheritance towards new property(more expensive area, but closer to family for my health problems). The dilemma i have, is that I would then need to claim income related esa, because I wouldn't then have enough to live on.
My question is, would this be seen as a NEW claim for esa ir and therefore I would have to claim universal credit, or is it just a CHANGE TO EXISTING ESA claim, which is Currently contribution based and therefore I can continue on the legacy benefits? Which would mean i would be around £200 better off per month. i would be so grateful if anybody could help with the answer.
Thank you! Sue

Alice_Holt

Caval1er said:

The dilemma i have, is that I would then need to claim income related esa, because I wouldn't then have enough to live on.
My question is, would this be seen as a NEW claim for esa ir and therefore I would have to claim universal credit, or is it just a CHANGE TO EXISTING ESA claim, which is Currently contribution based and therefore I can continue on the legacy benefits? 

   My views - 

    I think it would be viewed as a new IR claim, and so would need to be a UC claim as it is not possible to make a new IR ESA claim.

      If you are in the support group then you should be placed in the LCWRA group of UC (as you have a existing ESA SG award when applying for UC). You should get the LCWRA element of UC. Your existing CB-ESA will then be deducted in full from your UC award.
There are no automatic disability premiums with UC (unlike IB-ESA) unless transitional protections apply  (which they don't in your case).  
https://www.turn2us.org.uk/Benefit-guides/Universal-Credit/Additional-Elements-of-Universal-Credit  (see LCWRA para)


     I'm assuming you are buying not renting, so help with rental costs don't apply.


   Please check by using benefit calculators, and seeking advice from your local advice charity:
https://www.turn2us.org.uk/Benefit-guides/Universal-Credit/Additional-Elements-of-Universal-Credit

  PIP is unaffected. 
  A council tax support application is made via your new LA.

calcotti

I disagree with Alice on this one.

You are claiming legacy ESA which consists of two types of entitlement, contribution based and income based. You can ask to be reassessed for income based entitlement and will be sent an ESA3 form on which you record your financial situation. ESA will then work out whether or not you have any income based entitlement and if you do you will be paid this on top of the contribution based entitlement.

However the key issue is whether you will be renting your home. I infer from your post that you will not be. If you were wanted help with the rent you would not be able to claim Housing Benefit so to get help with rent would have to claim UC. A claim for UC prevents entitlement to income based ESA. If you do claim UC then the process is as described by Alice.

You may be able to claim Council Tax Reduction from your new local authority depending on the rules for that local authority and how much, if any, capital you will have left.

 

Caval1er

Hi Alice, thank you for you reply. I can't believe how it's possible to be worse off, how can that be reasonable?!? It seems so unfair, I have enhanced living component and would have sdp too if was already claiming ir esa. I looked into how to manage inheritance and have done everything by the book, came off of ir esa, ctb etc. Now it looks like the plans I have put into action to move won't be affordable. I could keep some savings back from house purchase to live and wait for forced migration and protection maybe,but that could be years I guess? 
I could do equity release to top up my income, but I understand i would lose it from benefits £ for £? What i can't get my head around either, is that if I was well enough to work and earn it then I can keep it, without it affecting benefits (up to certain amount) but because I can't work I can't draw down equivalent to what I could earn from equity and pension and keep it... it really seems like punishment to the people who really cannot work at all..

poppy12345

calcotti said:

I disagree with Alice on this one.

 

Same here. Though it doesn't often happen.

Alice_Holt

Thanks to calcotti and poppy for their comments on my initial post. 

I was not entirely sure (hence "I think"), and am happy to hear that the OP can request an ESA 3 form to top up CB-ESA.

   

calcotti

Caval1er said:

I can't believe how it's possible to be worse off, how can that be reasonable?!? It seems so unfair, 

OP, assuming you don't need to claim UC for help with rent, if you will be living alone and nobody claims Carer's Allowance or the carer element of UC for looking after you then your income based ESA will include a Severe Disability Premium which means the ESA will be worth more than a UC award will be.

If SDP did not apply UC would be worth more than ESA.

poppy12345

Following on from this thread here https://forums.moneysavingexpert.com/discussion/6345642/cant-reply-to-comment-in-my-earlier-post#latest as you can see there's no problem posting a comment so i can see how the thread is corrupt.

Grumpy_chap

poppy12345 said:

Following on from this thread here https://forums.moneysavingexpert.com/discussion/6345642/cant-reply-to-comment-in-my-earlier-post#latest as you can see there's no problem posting a comment so i can see how the thread is corrupt.

It's is also possible to quote from this thread and add text outside the quoted box.  @Caval1er

PS - the OP's user name reminds me of my brother's first "proper" car when he met his (now) wife and was instructed to grow up out of the two seater convertible to a comfortable proper car.

poppy12345

Grumpy_chap said:

poppy12345 said:

Following on from this thread here https://forums.moneysavingexpert.com/discussion/6345642/cant-reply-to-comment-in-my-earlier-post#latest as you can see there's no problem posting a comment so i can see how the thread is corrupt.

PS - the OP's user name reminds me of my brother's first "proper" car when he met his (now) wife and was instructed to grow up out of the two seater convertible to a comfortable proper car.

Haha, i remember having a Vauxhall Cavalier and loved it.

Grumpy_chap

My brother's was a Mk1 in green.

The irony of him buying that on the orders of his better half (who didn't like the Spitfire) was that a few years later, when they were mortgaged etc., one of our friend groups got a Mk2 convertible and my brother's wife (by then) grumbled at him that they  couldn't have fun yet sensible car like that. 

To be fair, the thing that really put her off the Spitfire was after they knocked over a small boy (he was uninjured) who landed in her lap - possibly the boy was only uninjured because he bounced on the bonnet and then had a softer landing in the car than would have been the case had it been a hard-top which the boy would have gone off in whatever direction and landed on whatever unknown.

We have probably digressed and not helping the OP.