Complex issue Loans and deprivation of capital.

Frodsham · 31 October 2018 at 1:04AM

This is my first post, so HELLO !

Due to cancer and other health problems Ive recently claimed both my pensions early. Ive £24000 in my account as a lump sum and an income from both pensions of around £555pm.

Ive informed DWP. I know I will be off ESA due to the lump sum. What is critical is my SMI I cant find out if it will be stopped? I think I am on contributions ESA due to a long career in work. My full morgage will be £785 pm and I need new carpets and furniture. My car also needs Tax and MOT soon. Hence Im hoping my lump sum will be below £16000 soon.

DWP have not give me any info on the effects on SMI if its stopped can I get it later? Im very worried I will lose my home without the SMI support if its stopped completely forever.

I also want to buy a gaming PC for £5000 its my treat. I imagine this will be frowned upon! can I take out a bank loan? To pay for this luxury or is that classed as deprivation of capital? I would sooner buy a PC than go on holiday or buy a better car, a PC is my hobby and a good way of being occupied during ill health. Is a loan a bad way to keep the DWP happy? I think purchasing a PC from my lump sum would not be right with the DWP.

Please dont judge me badly, thanks.

NeilCr · 31 October 2018 at 6:19AM

A lot of information here

https://www.moneyadviceservice.org.uk/en/articles/support-for-mortgage-interest

That says you can only get SMI if you are receiving income based ESA so you should check which ESA you are actually receiving.If you were on Conts based your level of capital wouldn't be taken into account - that only impacts on income based benefits. If you worked up to only recently I would have thought you would have been on Conts based.

Deprivation of capital is always difficult and open to interpretation but I think a £5k gaming computer (loan or not) is more than a bit iffy.

As you say your situation is rather complicated so I'd strongly suggest seeking help from MacMillan. They are very good.

https://www.macmillan.org.uk/information-and-support/organising/benefits-and-financial-support/benefits-and-your-rights

You can ring them and they often have trained advisers in local areas.

Frodsham · 31 October 2018 at 9:25AM

Thanks for that reply Neil.

I am having treatment for the cancer and the McMillan are involved.

My complex issue is the DWP stuff, not the cancer. They keep saying they will ring back (x3) and not done!

I agree about the PC, but it was always my ambition to get a decent one with my pensions. So I am frustrated that although I have the money I cant purchase one.

I am on contribution based I finished work 2014. Will I continue to get SMI? that's my biggest issue.

NeilCr · 31 October 2018 at 9:29AM

Frodsham wrote: »

Thanks for that reply Neil.

I am having treatment for the cancer and the McMillan are involved.

My complex issue is the DWP stuff, not the cancer. They keep saying they will ring back (x3) and not done!

I agree about the PC, but it was always my ambition to get a decent one with my pensions. So I am frustrated that although I have the money I cant purchase one.

I am on contribution based I finished work 2014. Will I continue to get SMI? that's my biggest issue.

I am suggesting that you get help with your benefits from MacMillan - they have specialist advisers.

As I said, and the link provided does seem to corroborate this, I thought SMI was not payable to those on Conts based ESA so I am struggling to answer your question. A talk with a MacMillan adviser may clarify.

ETA.

If you are on Conts based how you spend your lump sum is up to you

[Deleted User] · 31 October 2018 at 10:07AM

If you get SMI you must be getting an income based top up because Neil is right, You don't get SMI on contributions based.

Frodsham · 31 October 2018 at 12:37PM

From phone calls I am on both cont and income, so yes a top up. DWP have mentioned this, but not said whether I can continue to receive SMI.

My total estimated income from pensions is £555 per month, is that over the threshold for ESA once my lump sum is below £16000?

If both ESA types apply, do I have to remain careful with `essentials only` purchases? Or do i get a bit more freedom?

Thanks again guys, I am stressed beyond belief at the moment, and its all about not knowing and finding the right answers.

I will try the Macmillan nurses re benefit advice, thanks, didn't know they did that.

NeilCr · 31 October 2018 at 1:02PM

Stick your numbers and situation into a benefits calculator

Entitled to is one

https://www.entitledto.co.uk

That will give you some sense of what you may be able to get.

Logic tells me that your income based top up will stop because of the capital. So you'd be on Conts based only. You might have to be careful about how you spend money in case it looks like you are "getting rid of it" to get back to Income Based.

On SMI I am not entirely sure what happens and I can't find anything to clarify although my gut reaction is it would stop too.

Not trying to be difficult but, as you say, it is complicated and I think a face to face with a benefits adviser will be better than trying to get this answered totally on a forum like this.

Good luck!

Frodsham · 31 October 2018 at 6:31PM

Good luck, thanks for that Neil....need loads of it.

After spending most of the week chasing info on my ESA and SMI, Im told because it will be a new claim (when I hit below £16000) it will be Universal Credit aagh! So I am completely in the dark again at this moment. If I cant get morgage support eventually, I will be homeless I cant afford to keep my house. If I spend money on carpets etc then that could be a complete waste of time!

Does universal credit have morgage support? is that the same as SMI? I bet no one knows here, its not routine.

I will speak to a benefits advisor at CAB, they have been fantastic in the past. DWP have again promised me an expert on SMI will ring me.

Frodsham · 31 October 2018 at 7:00PM

Contrary to my last post I'm told (DWP) I will stay on ESA due to my contribution based ESA, despite my high capital. I will restart Income related when my capital is lower, and then can hopefully restart SMI, as posted by shel SMI is only available for income related ESA.

I think thats the luck I needed! Thanks

NeilCr · 31 October 2018 at 7:15PM

Frodsham wrote: »

Contrary to my last post I'm told (DWP) I will stay on ESA due to my contribution based ESA, despite my high capital. I will restart Income related when my capital is lower, and then can hopefully restart SMI, as posted by shel SMI is only available for income related ESA.

I think thats the luck I needed! Thanks

That sounds about right.

CAB are good (I would say that as I am a volunteer there!) so no argument. I suggested MacMillan as, in our area anyway, they've been able to case manage people for longer (and have more availability) than we can

Glad it's working out for you. Go well!

Complex issue Loans and deprivation of capital.

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