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Will I have to lose money from my esa due to a large backdated payment?

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andyemma
andyemma Community member Posts: 2 Listener
Hi all .
I am new to the group and would like to say a hello to everyone , I  found the page while trying to navigate the internet in finding an answer to my question.
Last year I found out that I had not been receiving severe disability part of my ESA claim for the last 5 years. 

I live alone and am on pip also.
This resulted in them admitting I should have been receiving it all along and them putting a large amount of money in my bank .
Over the last year I have not spent it all and as the year anniversary is now looming I'm puzzled as to what happens now.
I have seen some posts on here about backdated amounts after a nationwide error by dwp over underpaying people when they transferred over to different benefit.
The response being as it was a mistake by dwp the amount paid is disregarded as savings for now and future claims. 
As my circumstances where a dwp mistake but not the same as the people posting on here
Will I have to lose money from my esa because I still have some of it a year later? 
(Bearing in mind no shops or most trades have not been fully open and working for the last year)
If my circumstances now mean after a year it Is considered as savings, do I have to ring them and tell them I still have some of it?
I dont want in a few years them to say I owe money because I didnt declare savings  
It's all so confusing !
I'm thinking it dosnt count because regardless of what type of mistake the dwp have made it's still a mistake and the money was paid because it's what I should have been entitled to anyway .but I just want to make sure.
Thank you for any advice on this as its driving me mad 


Comments

  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    For arrears payments of under £5,000 there is a 52 week disregard. For amounts larger than this paid due to official error the amount is disregarded for 52 weeks or until the ESA award ends, whichever is longer.

    One point to note is that because if you transfer from ESA to UC the disregard should be carried over.

    Employment and Support Allowance Regulations Schedule 9, paragraph 11 refers.



    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • andyemma
    andyemma Community member Posts: 2 Listener
    Options
    Hi and thank you for your reply.i have read the regulations schedule and think I understand a bit more now. Thank you @calcotti for your help ?
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