Employment and Support Allowance (ESA)
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ESA & SAVINGS

Hi everyone, 
Hope someone can help with ESA and amount of savings you can hold.
I have been on ESA (support group) for approximately five years.
My recent annual statement read as follows:

"The payment of Employment and Support Allowance is based on your National Contribution records and any additional amount the law says you need to live on.
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Living Expenses                                                                                          £74.70
Extra money because of the Disability Income Guarantee                         £17.20
Extra money because you are in the Support Group                                  £39.40
Which give a total income-related amount                                                  £131.30
No income will be taken off your Employment and support Allowance
Your income-related amount is £131.30 less total income of £0.00
So your income-related entitlement is                                                         £131.30
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From the above, I believe I get Contribution Based ESA with an Income Related entitlement of £17.20 (top-up).
If correct, I am right in saying that, if have more than 6k of savings, then the Income Related entitlement of £17.20 will be affected.
Or, I am wrong and the above is a Income Related ESA and as such any savings over 6K will affect my ESA.
Thank you for input in advance.

Replies

  • woodbinewoodbine Community Co-Production Group Posts: 3,787 Disability Gamechanger
    For IR  ESA savings over £6k reduce your ESA, savings over £16k would stop IR ESA.
    my advice is given freely and is correct to the best of my knowledge.
  • calcotticalcotti Member Posts: 1,241 Pioneering
    waterlilly said: From the above, I believe I get Contribution Based ESA with an Income Related entitlement of £17.20 (top-up).
    ..
    Or, I am wrong and the above is a Income Related ESA and as such any savings over 6K will affect my ESA.
    I read that as entirely income based (but ESA letters are notoriously difficult to interpret). 
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • chiariedschiarieds Community Co-Production Group Posts: 8,053 Disability Gamechanger
    Hi @waterlilly - & welcome to the community.
    To break it down you are entitled to £74.50, but, being in the support group adds an additional £39.40, so adding this to £74.50 brings you to the support group rate of £114.10. Being in the support group, if you're also on income-related ESA, you are entitled to the enhanced disability premium, which is the £17.10 mentioned in your statement. This brings the total to £131.30, which is quoted as being your income-related amount (IR), so it's IR ESA. As you correctly say, with this any income & savings over £6k may affect your ESA. Please see: https://www.gov.uk/employment-support-allowance/what-youll-get  You would no longer be eligible for ESA if your savings &/income were over £16k.
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