Is My Friend Committing Fraud On ESA?

woodbine66

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?

Spoonie_Turtle

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

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.

Newly_retired

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?