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Is My Friend Committing Fraud On ESA?

woodbine66
woodbine66 Posts: 123 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 12 October 2024 at 2:06AM in Benefits & tax credits
About 5 years ago my friend had an inheritance of about £30,000 which she reported to DWP. They changed her income related ESA to slightly lower contributions based. Just over 2 years ago she had another much bigger inheritance. She didn't bother reporting this to DWP as she says that her contributions based ESA isn't means tested.

Is she risking prosecution and maybe prison by not reporting the latest inheritance?

Comments

  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,603 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    woodbine66 said:
    About 5 years ago my friend had an inheritance of about £30,000 which she reported to DWP. They changed her earnings related ESA to slightly lower contributions based. Just over 2 years ago she had another much bigger inheritance. She didn't bother reporting this to DWP as she says that her contributions based ESA isn't means tested.

    Is she risking prosecution and maybe prison by not reporting the latest inheritance?
    She's correct, contributions-based ESA isn't means-tested so there's no need to inform them of any savings.
  • Muttleythefrog
    Muttleythefrog Posts: 20,553 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Is she risking prosecution and maybe prison by not reporting the latest inheritance?

    No... she only would be if claiming income related(means tested) benefits which are affected by savings. You only mention Contribution based ESA which is not income related.
    "Do not attribute to conspiracy what can adequately be explained by incompetence" - rogerblack
  • Newly_retired
    Newly_retired Posts: 3,241 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Some people who qualify for Contributions- based ESA may also qualify for a small amount of Income based ESA. She needs to be absolutely certain that all her income is CB. Does she also get Housing Benefit, for example?
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