ESA underpayment

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Comments

  • paramount7force
    paramount7force Online Community Member Posts: 7 Listener
    Hi there! I just need some advice for a friend of mine. He got paid approx £20000 from this Esa underpayment while in hospital over a year ago. He's been in hospital for approx 4 years in a rehabilitation unit. The doctors have decided he is ready to leave however he has most of the money still in his account. He is going to be moving to supported housing and will need to make a new claim for housing benefit. He met with someone from the local council today who said his housing benefit would be reduced because of the money. However I was just wondering because I read somewhere that this Esa underpayment was an error in law or something along those lines and shouldn't count towards any new claim ever. If that is the case then how does he move forward without having a reduction in his housing benefit? Any help would be much appreciated. Thank you.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Hi there! I just need some advice for a friend of mine. He got paid approx £20000 from this Esa underpayment while in hospital over a year ago. He's been in hospital for approx 4 years in a rehabilitation unit. The doctors have decided he is ready to leave however he has most of the money still in his account. He is going to be moving to supported housing and will need to make a new claim for housing benefit. He met with someone from the local council today who said his housing benefit would be reduced because of the money. However I was just wondering because I read somewhere that this Esa underpayment was an error in law or something along those lines and shouldn't count towards any new claim ever. If that is the case then how does he move forward without having a reduction in his housing benefit? Any help would be much appreciated. Thank you.
    Was the underpayment because of the error when transferring from Incapacity benefit to ESA? If so then yes backdated payments of more than £5000 can be disregarded for the life of the ESA claim and it should have stated that on the letter he received. https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits

    If it wasn't for the IB to ESA error then may i ask what it was for?


  • paramount7force
    paramount7force Online Community Member Posts: 7 Listener
    Hi there! I just need some advice for a friend of mine. He got paid approx £20000 from this Esa underpayment while in hospital over a year ago. He's been in hospital for approx 4 years in a rehabilitation unit. The doctors have decided he is ready to leave however he has most of the money still in his account. He is going to be moving to supported housing and will need to make a new claim for housing benefit. He met with someone from the local council today who said his housing benefit would be reduced because of the money. However I was just wondering because I read somewhere that this Esa underpayment was an error in law or something along those lines and shouldn't count towards any new claim ever. If that is the case then how does he move forward without having a reduction in his housing benefit? Any help would be much appreciated. Thank you.
    Was the underpayment because of the error when transferring from Incapacity benefit to ESA? If so then yes backdated payments of more than £5000 can be disregarded for the life of the ESA claim and it should have stated that on the letter he received. https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits

    If it wasn't for the IB to ESA error then may i ask what it was for?


    Hi the money was from the IB to Esa error he got put on contribution based Esa instead of income related Esa and got back payed severe and enhanced disability allowances from about 8 years or something. He said that all it said on the letter at the time was that he "may" have to declare it on a new claim but not that he would definitely have to. I'm pretty sure it doesn't have to be declared. I was just wondering if u could help me the housing association that are running the supported housing are insisting they fill in the housing benefit forms. How should he explain to them that the money doesn't have to be declared? We would really appreciate your help thanks!!!!
  • paramount7force
    paramount7force Online Community Member Posts: 7 Listener
    Hi there! I just need some advice for a friend of mine. He got paid approx £20000 from this Esa underpayment while in hospital over a year ago. He's been in hospital for approx 4 years in a rehabilitation unit. The doctors have decided he is ready to leave however he has most of the money still in his account. He is going to be moving to supported housing and will need to make a new claim for housing benefit. He met with someone from the local council today who said his housing benefit would be reduced because of the money. However I was just wondering because I read somewhere that this Esa underpayment was an error in law or something along those lines and shouldn't count towards any new claim ever. If that is the case then how does he move forward without having a reduction in his housing benefit? Any help would be much appreciated. Thank you.
    Was the underpayment because of the error when transferring from Incapacity benefit to ESA? If so then yes backdated payments of more than £5000 can be disregarded for the life of the ESA claim and it should have stated that on the letter he received. https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits

    If it wasn't for the IB to ESA error then may i ask what it was for?


    Sorry I'm a bit confused. He needs to make a new claim for housing benefit as he is leaving hospital and got the payment while he was in hospital. So does it or doesn't it count towards a new claim for housing benefit?
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    I would advise him to ring DWP to ask, if it's disregarded then he should ask them to send him a letter stating that it's disregarded and then that will be his proof.
  • vicki23
    vicki23 Online Community Member Posts: 3 Listener
    Hello, my partner was on IB in 2011 and switched to CESA, he was full time working when he went sick so paid NI, we havent heard any thing from ESA. He also was on DLA but has now been on CESA now since 2011. Is there a form to fill in to see if hes been under paid? 
    Thanks 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    vicki23 said:
    Hello, my partner was on IB in 2011 and switched to CESA, he was full time working when he went sick so paid NI, we havent heard any thing from ESA. He also was on DLA but has now been on CESA now since 2011. Is there a form to fill in to see if hes been under paid? 
    Thanks 

    Hi,

    Your question has been answered here on your other thread https://community.scope.org.uk/discussion/67647/hi-my-name-is-vicki23#latest