question about arrears and savings

darto150

Hi

I understand that if somebody receives arrears for ESA (or perhaps PIP), then combined with any existing savings, that could put them over £6K in savings.. And if that happens, then that arrears amount isn't counted  as part of income or savings, so means tested benefits such as ESA aren't reduced as a result of that.

What happens though if they move from ESA to Universal Credit?  And still have arrears pushing them over £6K.   Will the arrears / arrears status of those arrears(i.e. them not being counted as income or savings), carry over to the Universal Credit?

Or what happens if the ESA award runs to completion and it's time for them to reapply, would those arrears that push them over £6K count as savings?

calcotti

An amount disregarded for ESA should still be disregarded when ESA is renewed or if claimant is switched to UC, How much were the arrears? Amounts less than £5000 are only disregarded for 12 months.

https://www.legislation.gov.uk/uksi/2018/932/made

https://www.legislation.gov.uk/uksi/2018/932/pdfs/uksiem_20180932_en.pdf

(Interestingly for arrears that arise during a UC claim the disregard is in general never more than 12 months regardless of the amount but the indefinite disregard has been temporarily applied for UC until such time as managed migration to UC has been completed.)

poppy12345

darto150 said:

Or what happens if the ESA award runs to completion and it's time for them to reapply, would those arrears that push them over £6K count as savings?

ESA Support Group has no end date. The only time payments would end would be if they are claiming either Contributions based or New style and they are not in the Support Group, if they're not then it's time limited to 52 weeks.