Will a loan affect my income based employment Support allowance? — Scope | Disability forum
If we become concerned about you or anyone else while using one of our services, we will act in line with our safeguarding policy and procedures. This may involve sharing this information with relevant authorities to ensure we comply with our policies and legal obligations.

Find out how to let us know if you're concerned about another member's safety.

Will a loan affect my income based employment Support allowance?

RSISolutions Member Posts: 116 Courageous
I am in receipt of income based employment Support allowance and I don't have to pay council tax because of my low income and lack of savings. My savings are less than £6000. If I receive a loan secured on the equity in my house will this affect my benefits?

1. If it takes me over the £6000 limit
2. If I'm still under the £6000 limit


  • BenefitsTrainingCo
    BenefitsTrainingCo Member Posts: 2,622 Pioneering
    The principle is that savings above £6000 affect means tested benefits like income related ESA. But the rules can be complicated and it may be that there are other issues to consider here. How much do you expect to receive and what will you do with the money?
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • RSISolutions
    RSISolutions Member Posts: 116 Courageous
    edited September 2018
    Hi David. Loan will be paid in monthly Installments to the same value as my monthly mortgage payments and will be used to pay my mortgage. The total value of the loan is below £6000. No need to pay the loan back until I sell the house and the equity is released. My capital will remain under 6k during the period. 
  • poppy123456
    poppy123456 Member Posts: 31,245 Disability Gamechanger
    Under £6,000 doesn't affect means tested benefits providing the loan doesn't take your savings over £6,000.


Complete our feedback form and tell us how we can make the community better.

Do you need advice on your energy costs?

Scope’s Disability Energy Support service is open to any disabled household in England or Wales in which one or more disabled people live. You can get free advice from an expert adviser on managing energy debt, switching tariffs, contacting your supplier and more. Find out more information by visiting our
Disability Energy Support webpage.