PIP & ESA - Buying home under Right to Buy Scheme

dewie123
dewie123 Online Community Member Posts: 5 Listener
edited February 2020 in PIP, DLA, ADP and AA
Hi all. My mother in law has received an offer to buy her house under the Right to Buy Scheme. Myself and my husband (her son) are wanting to "gift" the money to her to do this via savings/part home owner loan, but we are wanting to know if this will affect her PIP and ESA. We know that her housing benefit will obviously stop, but unsure on anything else...or whether there is anything else that we need to be aware of that could cause issues with the benefits. Can anyone help?

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Comments

  • DaveTheWasp
    DaveTheWasp Online Community Member Posts: 37 Contributor
    I'm not 100% sure, but I would have thought that this would only affect means tested benefits. I assume that the PIP would be unaffected as this benefit relates solely to how the condition affects her daily living.  I would have thought that the ESA would depend on whether she's receiving income-related ESA, which could be potentially be affected by savings/money received. 

    There are people here that know a lot more about ESA, and hopefully someone will be able to give you some more info soon.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    HI,

    PIP isn't affected because it's not means tested. If she's claiming income related ESA then it would be better if you paid for it directly rather than "gifting" it to your mother.

    If she's claiming Contributions based ESA then savings are not taken into consideration.
  • dewie123
    dewie123 Online Community Member Posts: 5 Listener
    Hi both. Thanks so much for your responses.
    Her ESA is income based, so if I transferred the funds direct to solicitor instead of to her own account, that could potentially work? The solicitor has advised that I would need to sign a form to confirm I am "gifting" the money. Unsure what the best thing is to do. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    As long as the funds do not enter her bank account then yes it will be fine.
  • dewie123
    dewie123 Online Community Member Posts: 5 Listener
    Thanks so much for your help!! Enjoy the rest of your weekend 
  • dewie123
    dewie123 Online Community Member Posts: 5 Listener
    edited February 2020
    Hi @poppy123456

    Sorry to bother you.
    Just been looking on the gov website and it states "You cannot get income-related ESA if you have savings or investments worth over £16,000" 

    Even if I pay the solicitor directly for the full cost of the house (34k) would still this be OK noting the above? I guess she would have an asset not investment but would this matter and cause issues with her income based ESA? 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    The home you live in is not classed as capital for any means tested benefits.
  • dewie123
    dewie123 Online Community Member Posts: 5 Listener
    Again, thanks @poppy123456!!!! 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    You're welcome :)
  • DeeRuss
    DeeRuss Online Community Member Posts: 3 Listener
    Hi I’m interested in this question as my mum wants to buy me my council property but my solicitor says the money has to go into my account because of money laundering so there’s a paper trail. I’m on ESA contribution based so I’m very concerned it will adversely affect my income. How did you get on dewie123 please?
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2022
    DeeRuss said: I’m on ESA contribution based so I’m very concerned it will adversely affect my income. 
    Contribution based benefits are not affected by capital so it makes no difference.

    Previous poster was on income based ESA.
  • DeeRuss
    DeeRuss Online Community Member Posts: 3 Listener
    Sorry I meant income based esa and my solicitor says my mum has to transfer the money for house into my account then I have to transfer it into solicitors account. She’s already signed all the relevant paperwork Re buying house for me and the money she’s using came from the sale of her house which she sold through the same solicitor. Thank you for your feedback. Kind regards Dee 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    I think that provided the money comes into your account and goes out on the same day it will be fine.

    I think when I was in a position to help one of my children the solicitor insisted the money must come straight from me. Different solicitors appear to do it differently.
  • DeeRuss
    DeeRuss Online Community Member Posts: 3 Listener
    Thank you so much for your input. It’s a bit of a minefield isn’t it?! 😊

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