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Savings Limit for ESA

RSISolutions Member Posts: 116 Courageous
I am currently on ESA. I don't pay any council tax as I live alone and don't have much savings..

What is the savings limit you are allowed before it affects :-

1. Your council tax reduction?
2. The DWP's contribution towards your mortgage interest payments?

I live in Scotland.  


  • Sam_Alumni
    Sam_Alumni Scope alumni Posts: 7,676 Disability Gamechanger
    This is from the government website:

    Your income may affect your income-related or contribution-based ESA. Income can include:
    • you and your partner’s income
    • savings over £6,000
    • pension income
    You won’t qualify for income-related ESA if you have savings over £16,000.

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  • RSISolutions
    RSISolutions Member Posts: 116 Courageous
    Hello. Sorry this doesn't answer my question. I am already in receipt of Income related ESA. What is the threshold limit for savings in relation to 1. Council Tax Reduction 2. Help with Morgage interest payments from the DWP?
    thank you
  • steve51
    steve51 Member Posts: 7,154 Disability Gamechanger
    Hi @RSISolutions

    We have got some benefit advisors who will be able to assist you with your current questions.

    I will pass your post onto them for there advice if that is ok ???

    Hi @BenefitsTrainingCo

    Sorry but can you please offer me some help and advice with this post ??

    Many thanks.
  • CockneyRebel
    CockneyRebel Member Posts: 5,216 Disability Gamechanger
    If you are in receipt of ESA (IR) then you may get help with CT and MI. So the upper limit of savings will be £16000 in line with IR benefit

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  • thespiceman
    thespiceman Member Posts: 6,389 Disability Gamechanger
    Hello thank you to every one who has a made a comment on savings.  Thank you SCOPE.  I did not know this.  I get ESA and in the future probably need to put some thing away.  This is what I like about this forum useful info to file away.
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  • BenefitsTrainingCo
    BenefitsTrainingCo Member Posts: 2,628 Pioneering
    Hi there RSISolutions - just to add to the above: The capital limit for income related ESA is £16,000, and for every £250 you have above £6000, you will be treated as having £1 of income, which will be deducted from your ESA accordingly. As long as you retain some income related ESA, then you may well be entitled to the maximum help available for council tax reduction from your particular local authority BUT you must check your local authority's individual scheme. In England, for instance, some local authorities will not give any council tax reduction if your capital is more than £6,000. There is a link here to Citizens Advice Scotland which may be helpful:

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  • RSISolutions
    RSISolutions Member Posts: 116 Courageous
    edited October 2017
  • RSISolutions
    RSISolutions Member Posts: 116 Courageous
    edited October 2017
    Hi @BenefitsTrainingCo if an employee is about to enter into a COT3 agreement and will receive some payment that will affect their benefit, do they have to show this COT3 paperwork to the DWP or will the DWP accept their declaration of the amount they have received without seeing the COT3 paperwork?
  • begri
    begri Member Posts: 1 Listener
    If you’re saving account is under 16000 but your current account takes you over 16000, is it correct for my claim to close?
  • poppy123456
    poppy123456 Member Posts: 28,349 Disability Gamechanger
    begri said:
    If you’re saving account is under 16000 but your current account takes you over 16000, is it correct for my claim to close?
    It's all of your money added together. £6,000 is the lower limit and if you have more then this then your means tested benefits are affected £1 for every £250 over that amount. Once you reach £16,000 in total then you're not entitled to any means tested benefits.  Different for those claiming pension.
  • wilko
    wilko Member Posts: 2,447 Disability Gamechanger
    I know it may sound morbid, but if you have saving over the limit or near the threshold then maybe buying a prepaid funeral plan will help lower your saving and be one less thing for you to worry about or your family members, £4000 will cover a crematorium service all in just a thought.


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