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Child ISA and ESA

Dafyddth
Dafyddth Member Posts: 2 Listener
My 17 year old son has Autism and attends a Special Needs College. He receives DLA and has an EHCP. 

I was considering applying for Employment and Support Allowance for him, however he has £15,000 in a Child ISA which I understand cannot be withdrawn from until he reaches 18.

Would this stop him from being eligible for ESA?

Many thanks in advance.

Comments

  • gnmeads
    gnmeads Member Posts: 187 Pioneering
    Hi Dafyddth Welcome to the Scope community
    As far as ESA and savings are concerned, I think its if you have more than £6000 in savings that will affect the amount you receive up to £16000 were it stops altogether. So I think it's worth giving it a go. Anyway here's a link for more info:
    https://www.gov.uk/employment-support-allowance/eligibility
  • BenefitsTrainingCo
    BenefitsTrainingCo Member Posts: 2,628 Pioneering
    Hello Dafyddth - there are lots of issues with this. Once your son claims ESA in his own right (even if you do it on his behalf if you are his appointee or you  have power of attorney) the he is subject to the same capital rules as anyone else claiming a means tested benefit. If he is claiming income related ESA then the capital cut off is £16,000, and capital above £6000 reduces the ESA he can get UNLESS it is capital to which he has no legal access. This would apply to the Junior ISA, which as you say is accessible only when he is 18. That means he would only have short time on ESA before the capital rules started to click in. If you are receiving child benefit and child tax credit for him, then you may be better off staying on that for all the while that you can receive child benefit for him. The capital that he holds while he is still your dependent for benefit purposes is ignored. This question of what to do about ESA etc when you have a transitioning teenager is covered very well in this factsheet from Hertfordshire County Council, and I would strongly recommend reading it before you decide. Please post again on the Ask and Benefits Adviser part of this website and we will try and advise you further.
    https://www.hertfordshire.gov.uk/media-library/documents/adult-social-services/money-advice-factsheets/disabled-young-people-–-benefits.pdf
    I hope this helps!
    Jayne
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland

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