Inheritance and savings cap

MissReginaP

hello, 
I hope someone can point me in the right direction for information. 

I have been chronically ill for 21 years and live on income related ESA & PIP. 

Few years back, it was found that I was one of the ones that the DWP had underpaid for years and I received many thousands of pounds back from them. 

I have around £5k of that left in savings. 

I hope I am correct in saying that any of that money, wasn’t then included in any savings cap, due to it coming from the DWP. 

I, very sadly, have recently lost my mum & her work place have informed me that they are looking into getting us a death in service payment. I have no idea if this will happen or how much it would be. 

My worry now, is if that does come and it’s a substantial amount of money, will my current savings (from the DWP back payments) be taken into consideration with this other money I may receive, thus taking me over the savings cap limit? 

As then I will lose my ESA, council tax and housing benefit. 

Is the money I received as back payment from the DWP always disregarded when calculating a total savings amount? Or can/will it be used when more is added? 

I of course will be declaring anything I get, I just would like to prepare myself mentally ahead of time, if I am going to lose all support. 

Thank you for any info/advice you can give me. 

calcotti

The arrears amount from DWP will continue to disregarded. 
If your inheritance (ignored the DWP money) savings your capital over £16,000 any will lose any income based ESA. Council Tax and Housing Benefit will also be lost.

PIP is not affected by capital/savings. 
Your ESA may be a mix of contribution based and income based - you should check this. If you were previously on Incapacity Benefit then the ESA is likely to be an 'mixed' award. If so then the contribution based amount is not affected by capital and will continue regardless of any capital/savings.

MissReginaP

calcotti said:

The arrears amount from DWP will continue to disregarded. 
If your inheritance (ignored the DWP money) savings your capital over £16,000 any will lose any income based ESA. Council Tax and Housing Benefit will also be lost.

PIP is not affected by capital/savings. 
Your ESA may be a mix of contribution based and income based - you should check this. If you were previously on Incapacity Benefit then the ESA is likely to be an 'mixed' award. If so then the contribution based amount is not affected by capital and will continue regardless of any capital/savings.

Thank you very much. I knew that PIP wouldn’t be affected. 

That’s good to know that my current DWP backpay savings will always be disregarded. 

I will have to look closer at my ESA award, as it’s always confused me. I was on contribution based for many years, which is why I then was moved to income related and got the payback. 

I wasn’t aware it could be mixed, so thank you. 

I’m struggling so much with the grief of losing my mum, that anything remotely stressful or confusing is more difficult to handle than normal. 

Murphybear

Hi

I can’t help much with the practical things but send you virtual hugs.      There’s loads of people on here who are lovely and helpful.

regards

MB

calcotti

MissReginaP said:
I was on contribution based for many years, which is why I then was moved to income related and got the payback. 

I wasn’t aware it could be mixed, so thank you. 

It is more likely that the income based ESA was added as a top up to the contribution based ESA and you have a 'mixed' award.

Newcad

calcotti said:

Your ESA may be a mix of contribution based and income based - you should check this. If you were previously on Incapacity Benefit then the ESA is likely to be an 'mixed' award. If so then the contribution based amount is not affected by capital and will continue regardless of any capital/savings.

Agreed, MissReginaP says that she got a backpayment because of the LEAP review so the current ESA award will almost certainly be a mix of Contributions Based with Income Related premiums.