ESA backpay re: contribution to income, doesn't affect council tax, housing benefit?

Retrovertigo

Hi there. Amazing how difficult it as been to find answer to this to be honest! I haven't ever been over the £6000 threshold before so this is all new to me!
 
Bit today I received backpay which takes me past the maximum amount normally allowed for savings where the housing benefit people are concerned. I did ask somebody who had dealt with my back payment issue, and initially she wasn't sure (as she had never been asked!) but went to ask a colleague who said it didn't affect either council tax or housing benefit so I didn't need to inform them. But because she had to go ask somebody else, I am a little bit wary.

 Can I rest easy? As I'd dearly like to pay back some of the money my family has loaned (given me) over the years to help me out, as I never truly understood what I was able to claim until a handful of years back. Many thanks

Dotty123

As it’s backpay owed it shouldn’t affect you as it’s money you should of already had not sure but I hope so then you can enjoy 

poppy123456

Hi,

Backdated money is disregarded for 52 weeks for all means tested benefit and won't affect any housing benefit or council tax reduction you receive.

Retrovertigo

That's such a relief. So I'm ok to not inform them at all? 

poppy123456

I would inform them just so your covered but it's disregarded for 52 weeks.

wilko

Rest easy now and sleep tight, nothing to worry about.

Retrovertigo

Well, in an interesting (read: really bloody annoying)  twist, I have been told by somebody working in law, that although they are supposed to ignore payments over £5k for the lifetime of your claim, if they split the bigger amount owed, into smaller amounts of £5k or less, then you have the normal 365 days to use the money. Can they really sink any lower? It is what they did with me, split the payments up. Absolutely disgusting when it was their error.