Employment and Support Allowance (ESA)
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ESA backpayment

BoderwBoderw Member Posts: 8 Listener
Hi first post.
Can somebody please give clear guidance on the situation I am in as an apointee to my disabled brother. 
He has a life long disability living in supported housing (Housing Benefit paid for by Local Authority). He has savings of £13,000 all declared. This week he has received a backpayment for his esa for £7000. 
Ihave read through various posts this can be held in disregard ? As its been an official oversight by DWP etc.
Would i have to notify the Housing Benefits of this change of circumstances?
Anybodys similar experience of this situation and outcome from a “legal perspective” would be appreciated.
Thanks

Replies

  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Hi,

    Yes the £7000 is disregarded for 52 weeks and won't affect any means tested benefits.
    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.
  • Pippa_AlumniPippa_Alumni Scope alumni Posts: 5,851 Disability Gamechanger
    Welcome to the community, @Boderw! Glad to see you've had some guidance from Poppy with this!
  • BoderwBoderw Member Posts: 8 Listener
    Hi Poppy,
    Thank you and appreciate your replies. Yes the initial £13000 savings was declared to the Housing Benefits a month prior with no affect to his housing benefit. Then this payment of £7000 (esa backpayment) gets paid into his account!!....rightfully his, but at the same time £20000 now in his account !!! Without being possibly being accused of lavish expenditure (unsure what’s classed as lavish) seems that it’s a double edged sword.
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    I don't understand why the savings didn't affect his housing benefit because savings over £6000 affect them £1 for every £250 over that amount so he should have been receiving less housing benefit because of this.

    He can spend it on what he wants within that 52 weeks and no questions will be asked. He should have received it anyway so it doens't count. If his savings take him over £16000 in 1 years time then all means tested benefits will stop.
    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.
  • BoderwBoderw Member Posts: 8 Listener
    Thanks for your welcome Pippa. Gives great comfort to chat / post concerns..The benefit system is a minefield. from my perspective. While wanting to do the best as an appointee regularly met and receive a dismissive attitude from local authority, DWP etc
    Best Regards
  • BoderwBoderw Member Posts: 8 Listener
    Hi Poppy,
    Apologies to all, I seem to be “hogging” the post. Regarding how the savings of £13000 didn’t affect my brothers housing benefit is basically the tariff income for £13000 would be £28. Weekly, added to a total income (made up of ESA payments) it equates to £140...ish given his applicable amount is £191.45 they can still pay housing benefit because income is less? Nothing can be paid over savings of £16000.
    Confusing to say the least, hence my concerns of the “new” arrival payment. Disregarded or not disregarded ?
    Regards
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    I'd seek further advice because to be honest despite my benefits knowledge i'm completely clueless on this one and there's not a lot that confuses me regarding benefits. Good luck.
    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.
  • BoderwBoderw Member Posts: 8 Listener
    Thanks Poppy hence my concerns...basically grasp that he’s entitled to housing benefit of up to £191...his rent is £137 because of his mean tested benefits and £28 excess savings tariff doesn’t amount to £191 therefore his rent is paid. All in black and white last week....then the new arrival ???
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