I was unaware pip payments were disregarded as capital

System

This discussion was created from comments split from: Too much savings!!.

kingston1506

Hiya sorry for jumping in I was unaware pip payments were disregarded as capital?  Im  in a similar situation in that I don’t spend what I get with pip and UC so will gradually hit the 16k mark then I’ve been told any new claim made will not include the LCWRA element and that I’ll have to go through the whole health assessment again 

HillStreetBlues

kingston1506 said:

Hiya sorry for jumping in I was unaware pip payments were disregarded as capital?  Im  in a similar situation in that I don’t spend what I get with pip and UC so will gradually hit the 16k mark then I’ve been told any new claim made will not include the LCWRA element and that I’ll have to go through the whole health assessment again 

Yes, PIP and your UC payment that are paid in an AP are income, they only become capital in the next AP.
I have asked the mods to give you your own thread, as it becomes confusing when dealing with different people.

peteuk

kingston1506 said:

Hiya sorry for jumping in I was unaware pip payments were disregarded as capital?  Im  in a similar situation in that I don’t spend what I get with pip and UC so will gradually hit the 16k mark then I’ve been told any new claim made will not include the LCWRA element and that I’ll have to go through the whole health assessment again 

PIP back pay is disregarded for one year, from its receipt.  Any further PIP payments are only disregarded for the UC assessment period that they are paid in.  

EG if your PIP payment is £700 and you spend £500, then the remaining £200 is then classed as capital for the next assessment period of UC. 

You have a thread about DoC, at which you state you've declared £7K, the fact that you don't spend your UC and PIP doesn't alter the fact that at some point  you may go fro £6K to £16K.  Once you hit £16K your entitlement to UC will cease. Once  you drop down below £16K you can reclaim.   

You've been advised about DoC, to try and maintain your Capital under the £16K.   At present you are declaring £7K which will mean your UC is reduced by £4.35 per £250 or part of there in, so a reduction of £17.4. 

kingston1506

Yes I have since found out LCWRA does not roll over into a new claim after savings have been used and that I will need a whole new wca and health assessment forgive me for posts I am still trying to figure it all out 

MSE_ForumTeam5

@kingston1506 we've split this into its own thread to avoid confusion between replies to the other thread's OP

poppy12345

kingston1506 said:

Yes I have since found out LCWRA does not roll over into a new claim after savings have been used and that I will need a whole new wca and health assessment forgive me for posts I am still trying to figure it all out 

If your UC ends due to capital of more than £16,000 then you will need to go through another work capability assessment when you reclaim.

The only way to avoid this is to claim New style ESA before your UC ends but if you haven't worked in the previous 2 tax years you will not be entitled to any payments but your NI credits will continue based on LCW. Then when you come to reclaiming UC the LCWRA element will be included from the start of your claim. 

Wasn't this advised on your previous thread?

kingston1506

Yes I’m still unsure how I go about applying for credits thanks poppy 

kingston1506

I will do some research on NI credits I am sorry for my lack of knowledge I am still trying to navigate through and try not to get anything wrong 

kingston1506

So before my UC ends I ring ESA and make a claim for credits only I see then that will count towards LCWRA on new UC claim It’s a tough path to navigate through the benefits system

Muttleythefrog

The splitting of the thread now causes issue as the misinformation gains traction and actually the posts don't relate to the split.

This new thread is false in headline..at least in assertion of disregard

"I was unaware pip payments were disregarded as capital"

They are not disregarded. They are considered as capital if any left over after 4 weeks since receiving. They are treated much the same as other benefits paid and not spent by end of 'assessment/payment cycle'