Deprivation of Capital

tipitent
tipitent Online Community Member Posts: 4 Listener
edited June 2023 in Benefits and income
I’m currently on ESA(IR). I had my last WCA about ten years ago, in total two, both placed me in the support group with limited capacity for work. I’ve just inherited a house from mum, she sadly died a few weeks ago. I’ve also inherited a little money enough to stop my benefits. I’m considering moving to mum’s bungalow as if I sell it I can’t buy somewhere in the expensive town where I usually live in social housing. Am I allowed to use a private company (rather than go via the local authorities) to change the kitchen in the mum’s bungalow to make it more suitable for me to use in my wheelchair without the expenditure being seen as deliberate Deprivation of Capital at the time I have to claim again? I’m concerned a local authority kitchen would be of poorer quality and devalue the home - it may not suit me to stay in mum’s house so I want to make sure any changes made are decent in case I need to sell and move elsewhere. I’ve had so much trouble with benefits over the years having to get lawyers, and my MP involved. Over these years it’s caused me to feel I don’t want to be here anymore on too many occasions. I’ve looked at government documents and asked helplines but what is seen as Deprivation of Capital seems so arbitrary depending on the decision maker. Thank you for any advice.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Sorry for your loss. When you receive the money into your bank you will need to report the changes for all means tested benefits that you’re claiming. If it’s more than £16,000 they will all stop.

    If any part of your ESA is contributions based then this will continue. (£129.50/week) 

    If you’re claiming a disability benefit such as PIP/DLA then this will continue because it’s not means tested.

    If all your ESA is Income Related this will stop completely. Once your money drops below £16,000 then you can reclaim benefits but it will be Universal Credit you will need to claim. 

    Spending the money on home improvements will not be seen as deprivation of capital. 



  • tipitent
    tipitent Online Community Member Posts: 4 Listener
    Thank you very much Poppy.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Forgot to add yesterday that if any part of your ESA is contributions based then this will continue. Once your savings drop below £16,000 you'll be able to claim the Income Related top up again, (premiums) though there will be a deduction of £1/week for every £250 or part there of over £6,000.

    If the house now belongs to you legally and you're not yet living there then you will need to report this if the capital in there is more than £6,000. It will only be disregarded if you plan to sell the property and it's up for sale. Means tested benefits will all stop if there's more than £16,000 capital in the property. (even before you have the actual money from the inheritance.)
  • tipitent
    tipitent Online Community Member Posts: 4 Listener
    Thank you Poppy.

    I’m seriously considering moving to mum’s bungalow from a social housing flat. I’m waiting for the conveyance solicitor to sign it over, it’s not in my name.

    My ESA was income related. 

    I’m also wondering what will happen when the capital has gone below £16k - it won’t take many months. I’m a part time student. Citizens Advice told me I could reapply for ESA, but Scope said it would be Universal Credit - as I understand it Scope are correct. However, I also understand there’s some issue with disabled students not being able to have a Work Capability Assessment - so they can’t get UC. Scope sent me some info saying part time students can get UC providing studying doesn’t prevent them undertaking their work related activities, there was no mention of what happens to those previously in the Support Group. I’ve been put in the Support Group after each Work Capability Assessment and know I couldn’t hold down a job, I can barely manage part time study and I’m close to crumbling mentally since mum died a couple of weeks ago. Does anyone have any advice on this - thank you.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    If all of your ESA is Income Related then CA are incorrect. You will not be able to reclaim this if your ESA ends because of the capital over £16,000. You will need to claim UC.

    As for your Support Group award for ESA if you're ESA remains as NI credits only then i think when you claim UC then you'll be entitled to the LCWRA element from the start of your claim. I'm sure someone will confirm this. If you are entitled to LCWRA from the start of your claim then being a part time student will be fine because you won't have any work related requirements anyway.
  • tipitent
    tipitent Online Community Member Posts: 4 Listener
    Thank you so much again Poppy 🙏