backpayment , savings limit, and moving from Old ESA to universal credit

darto150

Hi

If somebody is on PIP and Old ESA and got an ESA backpayment putting them over £6K, So e.g. then they have £8K or even £17K in their bank account, and  and got a letter saying that the backpayment will not affect(cause a reduction in or stop), their benefit for the lifetime of their benefit.

Then a few years later, they get a letter telling them they have to switch to Universal Credit 

Will that allowance carry over?

Thanks

sammyjammy

Yes the exemption will also apply to UC, make sure you upload a copy of the letter when you apply.

darto150

sammyjammy said:

Yes the exemption will also apply to UC, make sure you upload a copy of the letter when you apply.

I spoke with somebody on the Universal Credit migration telephone line mentioned here 

https://www.gov.uk/guidance/move-to-universal-credit-if-you-get-a-migration-notice-letter

And they said something that doesn't sound right.. They said that you are protected for 12 months, and after that, one  wouldn't be eligible for universal credit, if they have over the £16K limit.  And they thought that between £6K-£16K makes no difference.  Though over £16K one would be ineligible.

Are you able to link me to the rules that show that the letter I received while on ESA, would carry over to UC?

Thanks

KxMx

Poor advice as usual from the so called
helpline.

The rules are:
Under £6k no deduction.
£6-16k, £4.35 deducted for every £250 or part thereof. 
Over £16k: No entitlement to UC.

If migrating from Tax Credits and have over £16k, an exemption on capital limits for one year. 

darto150

Indeed, but i'm asking 

Are you able to link me to the rule that shows that the letter I received while on ESA, (that arrears will be disregarded), would carry over to UC?

Thanks

HillStreetBlues

darto150 said:

Indeed, but i'm asking 

Are you able to link me to the rule that shows that the letter I received while on ESA, (that arrears will be disregarded), would carry over to UC?

Thanks

Can you confirm back payment was over £5000

pmlindyloo

If the backpayment was for over £5000 this link plus your letter uploaded should be helpful:

Capital_disregards_v11.0.pdf

Scroll down to 'Capital Disregard for an Extended Period'.

darto150

pmlindyloo said:

If the backpayment was for over £5000 this link plus your letter uploaded should be helpful:

Capital_disregards_v11.0.pdf

Scroll down to 'Capital Disregard for an Extended Period'.

Thanks that's what I was looking for. Perfect

darto150

Thanks.. So I now have a further question..

I spoke on the phone to the Universal Credit people  and asked them what I should enter on the form, 'cos if I enter the amount I have in savings, then said I should subtract the arrears, and put a note in the journal of the amount of arrears along with the letter that says the arrears are disregarded for the lifetime of the benefit.

Is that right?

I wonder if maybe, if I subtract the arrears, then at some point a computerised system might check my account and see its over and stop or reduce the benefits.

And I wonder if maybe if I include the arrears, then they might pay me reduced benefit either immediately or after 12 months.(their system not realising that it's to be disregarded for the lifetime of the benefit).

I don't know how the system will work out?