ESA contribution based-help with rent/UC housing element

Videsta

Hi,

I'm in receipt of the above and in the support group.

I currently have savings over the cut off point for UC (16k) and paying full rent and council tax from these savings which are gradually reducing as I have no other income.

I understand that with CB ESA there is no help with private rental costs and you have to apply for this via the housing element of UC.

When my savings go below the 16k level would I be able to apply for and receive UC for the housing element?

I understand that the amount would be on a sliding scale depending on level of savings under 16k whilst they gradually diminish.

At the point my savings then go below 6k would I be eligible for the full standard housing element amount for a single person over 25 for my area?

When should I apply for the housing element?

Should I do so as soon as savings go below the 16k limit?

I'm finding this a bit confusing.

I hope my post makes sense.

Thanks for reading.

KxMx

UC works by first adding up entitlements, then making deductions.

Yes you can apply once your capital goes below £16k.

If you use a benefit calculator you can do a few calculations, with various levels of savings so you can see what your estimated UC award would be at various stages. That can help inform your decision on when to claim.

https://www.gov.uk/benefits-calculators

Even a small UC award will passport to other things such as help with health costs, Warm Home Discount etc (unfortunately the qualifying date for help this winter was August).

https://www.nhs.uk/nhs-services/help-with-health-costs/help-with-health-costs-for-people-getting-universal-credit/

https://www.gov.uk/the-warm-home-discount-scheme

Once in receipt of UC, you can also apply for Council Tax Reduction. Each area has different rules & savings limits.

Videsta

Thanks for the information, It's appreciated.

I was told by a DWP staff member that I would "always" be on CB ESA due to prior contributions whilst working.

Thats why I find this stuff so confusing.

So to clarify please :- when savings go below 16k Would I still "be on" CB ESA but eligible for certain means tested benefits due to lack of capital/income and then would I then become a UC claimant?

Prior to posting this topic I had a look online and all I could find was what the DWP said-that I'd "always" be on CB ESA somehow due to prior contributions when in work.

You can likely tell I can't quite get my head round it so apologies in advance.

KxMx

Yes you would remain on CB ESA, and be eligible for means tested UC once your capital went below £16k.

On your UC statements, there will be a deduction for the ESA you receive.

This is because UC class ESA as unearned income and deduct it from your award on full.

So your UC statement would first contain your entitlement:

Standard Allowance

LCWRA (you get this automatically for being in the Support Group of ESA)

Housing Element

Then deductions for:

Capital over £6k (£4.35 gets deducted for each £250 or part thereof you are over)

CB ESA £623 (this is the monthly equivalent of a weekly benefit).

Videsta

Thank you for your time, patience and expertise making things a bit clearer for me.