I think I've made a mistake

FactionParadox

I printed out my bank statements from the bank as per the request from one of the compliance offers, it's much more than I thought due to saving and a trust fund I was set up with by my grandfather which they know about, I don't know what to do and I'm paralyzed with fear. They wanted information about my student loan and I'm getting it for them, I'm just waiting on the enrolement letter.

I'm fine with my ESA being stopped and repaying what I owe, but I'm terrified they'll browbeat me to death and come after me. I'm so scared, what do I do?

poppy123456

You need to be honest. Tell them what savings you have exactly. If you didn’t report the changes there maybe a small fine on top of any overpayment you have (usually about £50 fine) if there’s an overpayment you will need to repay it back. 

Savings of less than £6,000 are ignored for Income Related ESA. For every £250 or part there of over that amount there’s a £1/week deduction.

Savings of more than £16,000 means there’s no entitlement to any means tested benefits.

The savings rule also applies to housing benefit if you’re claiming this. For council tax reduction some local Authorities have a maximum savings limit of £6,000 before entitlement to CTR stops.

calcotti

The trust fund may be counted or maybe ignored depending on the terms of the trust.

FactionParadox

Thank you calcotti and poppy, should I call the officer tomorrow and explain?

calcotti

FactionParadox said:

Thank you calcotti and poppy, should I call the officer tomorrow and explain?

Provide the information they’ve asked for.

They will not be open tomorrow.

Cher_Alumni

@FactionParadox

How are you feeling? I can't offer any further practical advice but can tell this was a genuine mistake and honesty does go a long way. Many other members have had compliance interviews lately, and you won't be the first to have done this I'm sure, so please try not to worry (I appreciate it's hard).

As Poppy said, you may face a small fine but won't be browbeaten for making a human mistake(!), please keep us posted and if you need any support - emotional or practical - we're here.

FactionParadox

@Cher_Scope

I'm doing some self care and gentle relaxation while redbudgeting everything for the loss. I can't predict how much they'll fine me for, I'm a little scared but I'm just telling myself there's no point in getting anxious or stressed before being hit with anything. I made an honest mistake due to all the conflicting information about the savings, what's allowed and what isn't, how much, what gets discounted... It's a system of misdirection and for someone with autism and learning disabilities, I can't cope.

Looking for part-time work ASAP and have potential leads. If I can get through the stress of working again, I might be marginally better off financially than I was on ESA despite council tax and paying rent. Of course, if they take loads of my savings I might be rendered poor enough to requalify for housing benefit.
I'll still have my PIP which is income.

Part of me is happy to break free of that part of the system. No more bullying letters, no more browbeating. What I own won't be bought with begrudgingly given government money but my own money. I'm going to budget cooking and I've stockpiled what I can, I refuse to let this beat me. I might only rent a one bedroom apartment, but it's my apartment and I'll fight like hell to keep it.

poppy123456

If your ESA and housing benefit ends because you have more than £16,000 in savings then you won't be able to claim housing benefit again, unless you're either living in temporary or supported housing. You will need to claim Universal Credit for help with any rent.

FactionParadox

Thanks for letting me know poppy, that's really helpful!

I'm so scared about the call tomorrow. Anyone got any advice or am I the only fool who got himself into this situation?

poppy123456

All I can advise is to be honest. You’re not the first person this has happened to and I’m sure you won’t be the last. 

If any part of your ESA is contributions based then this isn’t affected by any savings. 

FactionParadox

I'm going to make the call in a few minutes, wish me luck. Hopefully the compliance officer understands, we talked before.

OverlyAnxious

FactionParadox said:

I'm going to make the call in a few minutes, wish me luck. Hopefully the compliance officer understands, we talked before.

Good luck!  How did it go?

FactionParadox

She was very understanding and kind about it. She's going to ring me on Thursday to take a new statement about it all and I then called the ESA office after about an hour of waiting to calm down, I was in tears on the phone.

At least now I can look for proper work... It's not going to be easy, but nothing worth doing in life ever is.

FactionParadox

Teddybear12 said:

Good luck @FactionParadox It all sounds very positive. At least you will know where you stand. Take care.

Thanks Teddy, trying my hardest.

FactionParadox

Thanks for all the support. As expected, ESA and Housing Benefit are gone and Council Tax is restored, which I might be able to reduce due to being a student. Currently looking for work, just trying to survive and get everything in the budget.

poppy123456

FactionParadox said:

Thanks for all the support. As expected, ESA and Housing Benefit are gone and Council Tax is restored, which I might be able to reduce due to being a student. Currently looking for work, just trying to survive and get everything in the budget.

Do you mean both ESA and housing benefit ended? If so did you ask for your ESA to remain as a credits only claim? 

FactionParadox

I could ask, both ESA and housing benefit ended. I wasn't aware of a credits only claim.

poppy123456

Once your savings go below £16,000 you can claim Universal Credit. If the ESA remains as credits only then if you claim UC in the future because you were in the Support Group then you’ll be entitled to LCWRA element from the start of your claim. 

I don’t know if it automatically remains as a credits only claim.

calcotti

poppy123456 said:

I don’t know if it automatically remains as a credits only claim.

Logically it should continue automatically but I don’t know either. 

It would be worth OP checking with ESA whether they have him down as still having LCWRA and whether or not he is getting NI credits. Quite apart from possible impact on future UC claim OP may need the NI credits for future State Pension.