PIP, DLA and AA
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PIP & ESA - Buying home under Right to Buy Scheme

dewie123dewie123 Member Posts: 5 Listener
edited February 2020 in PIP, DLA 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?

Replies

  • DaveTheWaspDaveTheWasp Member Posts: 37 Courageous
    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.
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    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.
    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.
  • dewie123dewie123 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. 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    As long as the funds do not enter her bank account then yes it will be fine.
    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.
  • dewie123dewie123 Member Posts: 5 Listener
    Thanks so much for your help!! Enjoy the rest of your weekend 
  • dewie123dewie123 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? 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    The home you live in is not classed as capital for 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.
  • dewie123dewie123 Member Posts: 5 Listener
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    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.
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