Receiving £14,000 compensation on ESA support group and PIP

LuckyFoo616

Hi, thanks for posting! 

I currently receive ESA (income related) and am in the support group with the severe disability premium. I also receive enhanced PIP. 

I'm due to receive around £14,000 compensation soon, and I just don't know where to start figuring out how it will affect my benefits. 

I understand benefits will be reduced once I have over 6k on savings, and would stop should I receive over 16k, which isn't likely to happen. 

I'm severely disabled, so cannot work. 
I own my own home, and a large chunk of this money will be going towards repairs. My roof leaks. My front door doesn't close. The window frames are warped. My external walls are riddled with damp and the floor has gone rotten. I don't think I'll have this money for long with so much to fix! 

How much money would be deducted from my benefits as a result of my compenstation, and how do I go about showing I've spent the money on repairs? Will I have to make an entire new claim for ESA?
I'm so stressed out about this, and hope you can help! 

Spoonie_Turtle

PIP won't be affected.

Certain payments can be disregarded on ESA but it may depend on exactly what the compensation is for.

If it's not disregarded, the deduction is £1 per week for every £250 or part thereof over £6,000, up to £16,000 where as you know the ESA would then end.

To prove you've spent money on necessary repairs, you can cover yourself by taking photos or video of what needs repairing, and keeping receipts/invoices for the work.  They may accept it without too much trouble, but if you have to fight a bit harder then the visual proof of what things were like that needed repairing, plus any surverys or reports when getting quotes for the work should do the job.

Alice_Holt

PIP is not affected.

What exactly is the compensation monies for?

Your income related ESA will be affected (but not ended if savings are below £16k), with your ESA reduced by an assumed tariff income for any capital over £6k. The rules are set out here:
https://www.entitledto.co.uk/help/savings

"If you are working age the government assumes you receive £1 per week for every £250 (or part of £250) of savings you have above £6,000 and any actual income these assets generate is ignored."


So with £14k of savings (£8k above the £6k threshold), your ESA will reduce by £32 a week.
(Being £8k divided by £250, times £1 pw).

Keep all quotes detailing the repairs needed,  keep the bills, document your spend in order to demonstrate that the spending was reasonable, and not spent with the intention to increase benefit payments.
I'd also advise keeping the DWP informed about the situation, supplying bank statements so they can correctly calculate the tariff income as your savings are spent. Do this in writing, keep copies, and document all dealings with the DWP.

Any Council Tax reduction you receive will also be affected, so again keep your LA updated and document all your letters / phone calls etc to help prevent complications.  

EDIT; Cross posted with Spoonie. 

Alice_Holt

Note that some compensation payments are disregarded as capital.  For instance, Personal Injury Compensation Payments

https://assets.publishing.service.gov.uk/media/654111fb1f1a60000d360b54/admh2.pdf

LuckyFoo616

Alice_Holt said:

Note that some compensation payments are disregarded as capital.  For instance, Personal Injury Compensation Payments

Thank you so much for your replies! I really dont know if it could be disregarded, as the compensation is due to disability discrimination and "injury to feelings" (I believe that's the legal term used). I don't think this falls under personal injury as such but I don't understand the criteria very well. It's so confusing for me and my foggy brain 

LuckyFoo616

Thanks so much for replying! I'm trying to get my head around it all x 

poppy12345

If you're claiming council Tax reduction some Local Authorities have a maximum savings limit of £6,000 before entitlement ends. Please check their website, it may give details on there. 

TimeLord1

Is the ESA all income related or contribution related, with an income related top up ?

Contribution there is no limit on savings but it would affect any income related amount. Rent, council tax, disability income guarantee, dental care and prescriptions depending on your age and health issues. Personally any payment try to keep it away from other things but until it's paid it doesn't exist so only report it or be ready to forms etc once you have it. But as others have stated its disregarded but I think it is 12 months.