Buying a house on ESA — Scope | Disability forum
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Buying a house on ESA

Hi all, slightly unusual question I guess. I am currently on ESA and PIP following a stroke. No problem there, it took a while but I ended up with the benefits.

I have recently come into some inheritance money, enough to buy a small house. Coincentally I am shortly going to become homeless and therefore need to find somewhere else to live.

As far as I can see I can either tell the DWP about the inheritance and no doubt lose all benefits while I rent somewhere and basically live off the inheritance money until it runs out in a few years and then start the whole routine again of putting in a new claim.

Or could I use the inheritance money to buy myself a new house to live in. It would mean most , if not all, of the money would be gone and I would basically be in the same position as now, i.e. living in my own house on benefits.

Would the DWP take the view that I should of eeked out the inheritance money rather than blow it all on a house purchase?

Any advice?



  • Government_needs_reform
    Government_needs_reform Member Posts: 859 Pioneering
    The best advice I would give you, is seek face to face with a welfare rights or CAB.

    Has this Money been paid into your account if so I could prove awkward and advise the above I wrote.  I know other here will give you further advice and help you understand a little more which way to turn.
    I created one of the campaign election videos for Labour, and Jeremy Corbyn,
    This is a new version of Emeli Sande, Hope "You Are Not Alone
    I highlighted everything that's wrong with this country from benefits, NHS, UC etc, but now we have to put up with the hate now that is the Tories. 

    You can see the video here.

  • Yahwob
    Yahwob Member Posts: 2 Listener
    Haven't got the money yet, will be about a month. To be honest I've always found the CAB to be a waste of time. The advice they usually give me is "try it and see."
  • LittleGizmo86
    LittleGizmo86 Member Posts: 79 Courageous
    You cant lose your pip because it isnt means tested and isnt affected by savings.
  • Ripples
    Ripples Member Posts: 189 Pioneering
    @Yahwob It might be seen as deprivation of capital. Hypothetically you could ring them up and say I am getting x  amount of money  and I am going to buy a house and ask them whether this would affect your benefits  as apart from housing benefit the status quo would be the same.  It's a bit of a grey area  but this from the guidance manual 

    DWP DMG Vol5  chapter 29 Capital

    Did people say what they were going to do with their capital

    29843 Claimants or partners have not deprived themselves of capital for the purpose of getting benefit or more benefit if they

    1.say exactly what they are going to do with their capital and
    2.are told by an officer of DWP it will not affect the amount of benefit they can get and what they said they were going to do with their capital.
  • feir
    feir Member Posts: 395 Pioneering
    edited July 2018
    I should probably not advise on housing. I have bad (good imo) ideas taken from people who look out for themselves because they've been poor all their life.

  • sandraM
    sandraM Member Posts: 31 Courageous
    I sold my house and bought another to enable me to be mortgage free. Seems to be accepted.
    Happy house hunting if you decide to go down that route.
  • [Deleted User]
    [Deleted User] Posts: 273 Pioneering
    Yahwob, hi

    Yes, there is an issue as you suggest with receiving money and going out to buy a house with it. The issue is that as the government sees it you are wanting to carry on getting a means-tested benefit when you could have supported yourself for a long time using the capital.

    (Obviously there are lots of counter arguments to that view, for example, the government is happy to pay you thousands of £s in housing benefit instead, whereas if yo buy property you won't need that housing benefit etc etc).

    The issue outlined in paragraph one here is called " Deliberate disposal of capital" -  and the problem as the DWP sees it, is that a person has got rid of capital in order to get more or some means-tested benefit from the state. 

    it is different if someone leaves you money in a trust that has trustees and that you cannot access on your own. And it is different if you sell the house you live in and use that money to buy another house. 

    This is a minefield and many people don't get the benefit of inherited money because of these rules. 

    You do need advice, as it sounds like this has already happened, in that you expect to receive some money imminently. Might I suggest that you call our helpline for initial advice, and/ or see a solicitor. 

    Benefit sand Finance information Specialist
    Scope Helpline
    Tel: 0808 800 3333


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