Employment and Support Allowance (ESA)
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Savings, pension and contribution based ESA

dmnmdmnm Member Posts: 4 Listener
Hi I'm on contribution based esa, how much savings am I allowed and if I cash in my 10k pension to pay for home improvements due to ill  health is this included as savings.

Replies

  • GoodienuffGoodienuff Member Posts: 8 Listener
    I want to know the answer to this, as I lost my dear dad last year, and he left a few Bob which was supposed to be for me plus his 2 grandkids and 6 great grandkids.  I never got round to sorting it out due to my health, and since then my eldest daughter hasn't spoken to me, so her and her kids share is in my bank account.  It never crossed my mind that DWP can access my account, and there's £5k in it.  No idea what their criteria on this is, so am interested to see if this gets feedback.
  • mikehughescqmikehughescq Member Posts: 5,987 Disability Gamechanger
    If you’re on contributing based then capital has no impact. However, is your pension already reducing your ESA?
  • dmnmdmnm Member Posts: 4 Listener
    No I've just found out about this pension it was started when I was younger and I forgot about it
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    You need to make sure that all of your ESA is CB and not CB with an Income Related top up. CB is £110.75 per week, anything over that could be CB with a top up, then it will affect your ESA.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • dmnmdmnm Member Posts: 4 Listener
    I transferred from ib to esa so I get 115.10
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Then it's CB and savings/capital doesn't affect this.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • SethLaaSethLaa Member Posts: 115 Courageous
    I am on CB ESA and get £126.15 per week, does any body know what this is made up of? (lost all my paperwork so don't have a clue), thanks from SethLaa
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    SethLaa said:
    I am on CB ESA and get £126.15 per week, does any body know what this is made up of? (lost all my paperwork so don't have a clue), thanks from SethLaa
    This isn't all Contribution based. This is either all Income related or it's CB with an income related top up. CB ESA is £110.75 per week. If in the Support Group on Income related then you get a premium called Enhanced disability automatically  added to your money and this is an extra £16.40 per week.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • dmnmdmnm Member Posts: 4 Listener
    Hi poppy123456, thank you for your help. David-Mark
  • SethLaaSethLaa Member Posts: 115 Courageous
    Ah yes I think I have got it now as the figures you gave add up to £127.15 but I think I read somewhere that I lose £1 per week as I used to have just over £6000 in my account. As my ESA is based on Cont based and Income Related does that mean I still have to pay for Dental treatment and Prescriptions. Thanks very much for your input Poppy x
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Yes any savings over £6,000 will affect any means tested benefits £1 for every £250 over that amount. As you receive the income related top up then yes this will qualify you for free prescriptions and dental treatment. You're welcome.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • SethLaaSethLaa Member Posts: 115 Courageous
    OMG I doooon't believe it, this idiot thought that he (I) had to pay for dental. I spent £250 quid last year on 2 front teeth (my dog headbutted me ). Oh well at least I know now, thanks Poppy
  • wild_onewild_one Member Posts: 91 Connected
    Sorry to dig up this old thread, but if the OP cashed in his 10k pension, would it not be treated as 'income' rather than 'savings'?
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    wild_one said:
    Sorry to dig up this old thread, but if the OP cashed in his 10k pension, would it not be treated as 'income' rather than 'savings'?
    No because a lump sum is savings not income.

    Any weekly/monthly payments received from a pension is classed as income for means tested benefit. If someone is claiming Contributions based benefits then any income from a pension that's less than £85 per week is disregarded.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • mum01mum01 Member Posts: 15 Listener
    Hi everyone I’m new. I was diagnosed with RA at the beginning of the year. I was already on ESA in the activity group because of depression. I was then moved onto the support group. How do I know which it is I’m getting? The contribution based or income based? Is it different amounts? I know I get a bit extra for the disability
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited September 2019
    mum01 said:
    Hi everyone I’m new. I was diagnosed with RA at the beginning of the year. I was already on ESA in the activity group because of depression. I was then moved onto the support group. How do I know which it is I’m getting? The contribution based or income based? Is it different amounts? I know I get a bit extra for the disability
    Hi,

    Contributions based Support Group is £111.65 per week. Income Related is Support Group is £128.45 per week. Potentially more if you're claiming the severe disability premium.

    New style ESA support group which replaced Contributions based is £111.65 per week. There's no income related amount when claiming New style ESA.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • mum01mum01 Member Posts: 15 Listener
    I’m getting £128 a week. It does say in my letter that I haven’t paid enough ni for them to be used in the assessment but it doesn’t specify anything else
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited September 2019
    mum01 said:
    I’m getting £128 a week. It does say in my letter that I haven’t paid enough ni for them to be used in the assessment but it doesn’t specify anything else
    That's income related. Also because you haven't paid enough NI contributions in the 2 years prior to when your ESA claim started it means that all of your ESA income related.

    Some people claim Contributions based with an income related top up but as advised, you need to have paid enough NI contributions in the 2 year before your claim started.

    Are you asking because of a pension you receive? as that's the tittle of the thread you've asked your question on. If so then because your ESA is all Income related then any pension you receive will affect your ESA £1 for £1.
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • mum01mum01 Member Posts: 15 Listener
    Ok but surely I would have to be working to get income based? No the reason I’m asking is my home is going to be sold due to divorce so I have to go into rental house and basically live off what I get from house sale. So once this all happens I will have to tell them? Not pension age yet.
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited September 2019
    mum01 said:
    Ok but surely I would have to be working to get income based? No the reason I’m asking is my home is going to be sold due to divorce so I have to go into rental house and basically live off what I get from house sale. So once this all happens I will have to tell them? Not pension age yet.
    No, you don't have to previously be working to claim income based/income related. You have to previously be working to claim Contributions based.

    Income related benefits are means tested, which means household income, savings and capital affect the amount you can claim. When your house is sold if there's any capital/savings then you must report those changes once they go into your bank account. Anything over £6,000 will affect the amount of ESA you can claim by £1 for every £250 over that amount. If you have £16,000 or over than you won't be entitled to any means tested benefits and your money will stop. Your ESA will remain open for NI credits towards your state pension only. Once your savings drop below £16,000 then you can contact DWP and your payments will restart but with a deduction.

    Do be aware also of deprivation of capital. Paying any debts that aren't immediately due, buy expensive items etc can be classed as deprivation of capital and you could still be classed as having the money.


    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • mum01mum01 Member Posts: 15 Listener
    Thankyou Poppy
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