Migrating from ESA to UC after receiving backpayment

MrHeisenberg

Hi all,

I received a £16K SDP backpayment in 2021, which remains unspent (I have been saving that money for a rainy day). I now have around £15K in my bank account, and am trying to go through the online ESA to UC migration process after receiving a migration notice yesterday.

I am really stuck at this question:

"How much do you have in backdated benefit payments, in pounds and pence?"

Should I state the total amount of the backpayment received in 2021? That doesn't seem like the correct answer, though, as I have spend some of it, so seems like a bit of a trick question.

This is really so stressful, and the last thing I need when I am very poorly.

Any assistance would be immensely appreciated.

Sincere thanks.

toomuchinfo

It’s asking for the amount you have now, not what you had in 2021.

NedS

Agreed, enter the amount of back payment that you still have remaining in your bank account.

MrHeisenberg

So, if the backpayment was £16K, and I now have £15K in my bank account, it seems the figure to provide is £15K (£16K (backpayment) - £1K (spent))? Alternatively, as the backpayment took my bank balance to £20K, I now have £15K, is the figure to provide £11K (£16K (backpayment) - £5K (spent))?

This is a really stressful conundrum.

MrHeisenberg

Anyone know how time I have on this question before the DWP close my claims? I have completed all the other sections, but I am really stuck on this, and it seems like a really unfair question.

kaMelo

MrHeisenberg said:

So, if the backpayment was £16K, and I now have £15K in my bank account, it seems the figure to provide is £15K (£16K (backpayment) - £1K (spent))? Alternatively, as the backpayment took my bank balance to £20K, I now have £15K, is the figure to provide £11K (£16K (backpayment) - £5K (spent))?

This is a really stressful conundrum.

Not necessarily.  You received a back payment of £16,000 which due to it's size is disregarded indefinitely. What was the total capital you held at this point and what was the lowest capital balance you held at any point between then and now?
Using your figures as an example;
Total capital with backpay £20,000.
Lowest balance between then and now £15,000
Total Capital Currently £15,000
Total  of backpay still disregarded £15,000   

There is no way to differentiate whether the £5,000 you spent was disregarded backpay of from other capital.

If however you have had a lower balance at some point between receiving the backpay and now then this lower amount is what you would declare as disregarded back payment.
For example, 
Total capital with backpay £20,000.
Lowest balance between then and now £11,000
Total capital currently £15,000
Total of backpay still disregarded £11,000 

KxMx

You have 28 days to submit your UC form after starting, but do be mindful of your date given on the migration notice. 

MrHeisenberg

kaMelo said:

MrHeisenberg said:

So, if the backpayment was £16K, and I now have £15K in my bank account, it seems the figure to provide is £15K (£16K (backpayment) - £1K (spent))? Alternatively, as the backpayment took my bank balance to £20K, I now have £15K, is the figure to provide £11K (£16K (backpayment) - £5K (spent))?

This is a really stressful conundrum.

Not necessarily.  You received a back payment of £16,000 which due to it's size is disregarded indefinitely. What was the total capital you held at this point and what was the lowest capital balance you held at any point between then and now?
Using your figures as an example;
Total capital with backpay £20,000.
Lowest balance between then and now £15,000
Total Capital Currently £15,000
Total  of backpay still disregarded £15,000   

There is no way to differentiate whether the £5,000 you spent was disregarded backpay of from other capital.

If however you have had a lower balance at some point between receiving the backpay and now then this lower amount is what you would declare as disregarded back payment.
For example, 
Total capital with backpay £20,000.
Lowest balance between then and now £11,000
Total capital currently £15,000
Total of backpay still disregarded £11,000 

That's extremely worrying, and all this is giving me a nervous breakdown. 

I have just gone through my bank statements since the 2021 backpayment, and there was one point where my bank balance was around £7K. So, based on what you have said, around £7K should be disregarded from the £15K I have in capital at the moment, which potentially means that I have around £8K in capital for the purposes of UC and ESA, which I think potentially takes me (around £2K) over the £6K limit before deductions are made, unless I am mistaken. I had absolutely no idea. The difference is essentially from state benefits, as I have been in the ESA Support Group all along, and I receive PIP. I am going to be in a world of trouble here? Given how poor my health has been, I have been seriously struggling in terms of keeping on top of my finances. 

MrHeisenberg

To confuse matters further, it seems cost of living payments should be disregarded:

https://forums.moneysavingexpert.com/discussion/6605154/tribunal-over-dwp-not-calculating-capital-correctly

I obviously received those during the material times.

Looks like PIP and ESA may be disregarded too. Can anyone confirm? Bloody hell, it is like one needs an accountant to keep on top of this.

Spoonie_Turtle

PIP and ESA regular payments are only disregarded for the assessment period in which they are paid.  For starting a UC claim I think it would be the most recent PIP payment and ESA payment that are disregarded, to be on the safe side (as I understand it - although welcome correction where needed, as always - for income-based legacy benefits the disregard was for the relevant payment cycle of the benefit paid, which for ESA is two weeks and PIP is 4 weeks).  But once your claim is submitted, it is simple that for each monthly assessment period you disregard benefit payments received in that monthly period.

Cost of Living payments are disregarded if they remain unspent.  How you work out whether they were spent or not is up to you really, as mixing capital from different sources (which the vast majority of us do!  It's normal for savings all to end up in the same account) means any division is going to be fairly arbitrary unless your total ever dropped to 0.

Robbie64

This is my take on things, so not necessarily correct. 

If you received £16k as a back payment in 2021 and the lowest your bank account has been since then is £7k then logic dictates that you spent £9k of the back money.

Take £9k off your bank balance and what do you have left?

The Cost Of Living Payments throw something of a spanner in the works - did you get some COL payments AFTER your balance was down to £7k? If so, ignore then too. If not, then you either spent them at the time or more money from your backpayment has to be considered to have been spent.

As I posted, the above is my take on things but it makes sense to me.