I cancelled my ESA due to large lump sum, appear to have been sent wrong documents from them

Bonbonberry

Hello, looking for some advice. 

I have never been on contribution based ESA, but I have been on IR ESA (support) group for quite a few years. Until recently after receiving a large inheritance lump sum. I called the ESA helpline to inform them that I am no longer eligible to claim as I am way above the £16,000 limit due to said lump sum. 

I thought it would be quite a simple process, but I was then asked what the lump sum was made up from? I told them an inheritance as I am a beneficially of the will. But was then asked if it was property sales, insurance payments etc. I just said yes, but I don't have the exact details as I wasn't an executor. I am now concerned that the call handler has incorrectly noted "property sales" as if I had an asset like this. Which, I never had, it was my relative's house. 

The reason I'm asking is that I received a letter a week alter saying my ESA was being stopped on the date I received the money - as I expected, all fine. 

My issue is that I appear to have been sent an incorrect letter. They are "asking for more information" to deal with my claim and that information is a year's worth of bank statements for all of my accounts (and presumably my partner's) from November last year until today - including for a period after the ESA stopped? This form appears to be for people who have ongoing existing claims and payments as the letter states that "your benefit may be stopped if you don't send this info", there is no benefit to be stopped. It's already stopped. I don't need any calculations done or an award calculated as there is nothing they will pay me. I've been under all the thresholds until the lump sum payment date. 

Jyana

I am not sure of the reasons for them wanting the extra information, but when I had my inheritance my ESA didn't stop, it just became a nil payment during the period I was over the £6000/16k allowances. This is because I wouldn't have been able to get National Insurance credits during that period otherwise. This was on the cusp of legacy claims turning to UC and New Style ESA, so there may be some rule changes now but I would definitely get some advice as you don't want to be losing your NI during this time. 

Newcad

Are you absolutely sure that your ESA was entirely Income Related?

I have come across many people in Support Group who thought that it was all IR, but on further Questioning/investigation turned out to have an entitlement to Contributions Based ESA with an Income Related "top-up".

The annual DWP letters are notoriously obscure and unclear about that, and the DWP telephone/jobcentre staff don't understand it properly either (poor training). Which is why so many people in Support Group think they only have IR ESA when in fact they have both CB ESA and IR ESA.

If you do have the underlying CB ESA then that would not be affected by the inheritance and only the IR part would be lost.

Which in turn could explain why the DWP are still regarding the claim as being open and asking questions.

Bonbonberry

Newcad said:

Are you absolutely sure that your ESA was entirely Income Related?

I have come across many people in Support Group who thought that it was all IR, but on further Questioning/investigation turned out to have an entitlement to Contributions Based ESA with an Income Related "top-up".

The annual DWP letters are notoriously obscure and unclear about that, and the DWP telephone/jobcentre staff don't understand it properly either (poor training). Which is why so many people in Support Group think they only have IR ESA when in fact they have both CB ESA and IR ESA.

If you do have the underlying CB ESA then that would not be affected by the inheritance and only the IR part would be lost.

Which in turn could explain why the DWP are still regarding the claim as being open and asking questions.

Yes, absolutely sure. I haven't been in paid work since 2006 and this ESA claim began around 2015 or thereabouts. All my letters say my ESA has been income-related. 

Jyana said:

I am not sure of the reasons for them wanting the extra information, but when I had my inheritance my ESA didn't stop, it just became a nil payment during the period I was over the £6000/16k allowances. This is because I wouldn't have been able to get National Insurance credits during that period otherwise. This was on the cusp of legacy claims turning to UC and New Style ESA, so there may be some rule changes now but I would definitely get some advice as you don't want to be losing your NI during this time. 

I don't think I will be back in the thresholds for quite a long time. I'm not sure why they would still pay me contributions if I'm not getting ESA. That seems odd. I assumed that would stop. To be honest. I just want to be done with the DWP and move on with my life. I already have a lot of gaps in my NI but I don't really forsee me lasting long into retirement age for health reasons anyway. 

Newcad

As I said the letters are notoriously confusing and unclear. I have seen it many, many, times.

I'll get back to my computer later rather than my phone and check a few things.

Newcad

A question if I may;

You say that you hadn't been in paid work since 2006, and started claiming ESA in about 2015.
Had you been claiming anything else in between? eg. Incapacity Benefit, Income Support?

In particular did you have to move from one of those to ESA?

Bonbonberry

Newcad said:

A question if I may;

You say that you hadn't been in paid work since 2006, and started claiming ESA in about 2015.
Had you been claiming anything else in between? eg. Incapacity Benefit, Income Support?

In particular did you have to move from one of those to ESA?

After the paid work in 2006, I entered full-time education. After this, I had a child in 2007, with a very short time on Income Support. My partner at the time worked, and I wasn't entitled to any benefits other than DLA. I only applied for ESA due to splitting up with that partner. I wasn't moved from incapacity benefit or income support as I relied on my partner's prior income. I also knew nothing about benefits besides DLA, and it didn't cross my mind to even think about claiming anything. I was getting NI credits due to child benefits. 

I also recall that I was initially put in the work-related group until a new diagnosis changed that. In 2015, at a jobcentre appointment, the advisor mentioned that because I was on income-related ESA, I had to attend a weekly course. My friend, from the same area, claiming at the same time, didn't have to do this as she was on contribution based.

The letter I received a few days ago confirming my ESA was stopping also mentioned that I would have to "claim again" if my capital fell under £16,000. This to me sounds like the claim has completely ended, and what I would have expected. 

Newcad

Thanks, that rules out one possibility then.

All I can think now is that they are just double checking that all is as you say about the inheritance and that you weren't over the limit before then?

Or it may just be an automatic, computer generated, thing?

I've had a few of those in my time (particularly when migrating from ESA to UC) which were totally irrelevant to my claims but when someone at the DWP presses a button when opening/closing a claim the computer programme says to spit them out, so it spits them out even when not needed.

(eg. the 'To Do' on my UC journal that wanted to know my earnings from the last years employment - I was migrating from ESA and hadn't worked for 10 years, but still had to fill in £0.00 for every month of the past year before the computer would let things move on).

Bonbonberry

Newcad said:

Thanks, that rules out one possibility then.

All I can think now is that they are just double checking that all is as you say about the inheritance and that you weren't over the limit before then?

Or it may just be an automatic, computer generated, thing?

I've had a few of those in my time (particularly when migrating from ESA to UC) which were totally irrelevant to my claims but when someone at the DWP presses a button when opening/closing a claim the computer programme says to spit them out, so it spits them out even when not needed.

I'm leaning towards this being a mistake because I feel the call handler didn't press the correction options for what I was informing her.
I'm just concerned that they think I owned an asset that just didn't exist, i.e. an owned property that wasn't my main home. I was asked if the lump sum was from a "property sale", despite my saying it was from an inheritance. There's plenty of evidence and paperwork to the contrary though, so I'm not too worried. 

I have googled the form/letter they sent which requests more info, and it seems it is typically sent to people who still have active claims but sit somewhere between the £6000 and £16000 upper limit, so they need their finances reviewed to see if they are getting the correct amount of ESA. Which makes sense, but I hadn't been near £6000 until the lump-sum took me over. All of the terminology on this letter is "your benefit may be stopped if you don't send this info" (it's already stopped), and "to process your claim" (there is no claim) etc. 

To be honest, since I'm not getting any money from them anymore, I can't be bothered doing any leg work and spending a fortune on ink and paper to send a year's worth of bank statements from 5 different bank accounts. If they want to check, they are welcome to, at their own expense. I've nothing to lose or hide. 

Spoonie_Turtle

Bonbonberry said:

Newcad said:

Thanks, that rules out one possibility then.

All I can think now is that they are just double checking that all is as you say about the inheritance and that you weren't over the limit before then?

Or it may just be an automatic, computer generated, thing?

I've had a few of those in my time (particularly when migrating from ESA to UC) which were totally irrelevant to my claims but when someone at the DWP presses a button when opening/closing a claim the computer programme says to spit them out, so it spits them out even when not needed.

All of the terminology on this letter is "your benefit may be stopped if you don't send this info" (it's already stopped), and "to process your claim" (there is no claim) etc. 

That may just be standard wording regardless of the circumstances.  Like the references to income on the letters they send out for New-Style ESA which has not and can not have anything to do with income.  They're just template letters generated by the computer and confuse the heck out of people all the time!

sheramber

 was then asked if it was property sales, insurance payments etc. I just said yes,

I would have said no . as it was not from your property sales etc. You just got a sum of money.