Employment and Support Allowance (ESA)
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Inheritance and ESA?

Unfortunately my 90 year old Dad has cancer and not long left to live. I claim ESA/Housing benefit and was wondering what the DWP will do when I receive inheritance and use the money to buy a (very) cheap house. My share of the inheritance will be around £40,000, so enough to buy a very cheap house up North. Do I lose my claim, or does it still continue but obviously not give me any money as I will have more than £16000, then give me money again when I show that I have less than £6000 in the bank. Obviously I will not need housing benefit anyway. But the stress of having to start the benefits process again would be terrible.

Thanks.

Replies

  • calcotticalcotti Member Posts: 2,196 Pioneering
    edited June 13
    Once you have more than £16000 any income based ESA and HB (ask CTR) will stop. If part of your ESA is contribution based that will continue. You should check the make up of your ESA.

    If some of your ESA is contribution based that will continue and once your savings are below £16,000 you can ask to have Income based ESA added back.

    If your ESA is all income based the claim will stop completely and you will not be able to reclaim. Once capital is below £16,000 you will be able to make a claim for Universal Credit. Unfortunately you will need to have a new Work Capability Assessment to see if you are entitled to the extea health related element of UC. 

    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • brianjones2020brianjones2020 Member Posts: 2 Listener
    calcotti said:
    Once you have more than £16000 any income based ESA and HB (ask CTR) will stop. If part of your ESA is contribution based that will continue. You should check the make up of your ESA.

    If some of your ESA is contribution based that will continue and once your savings are below £16,000 you can ask to have Income based ESA added back.

    If your ESA is all income based the claim will stop completely and you will not be able to reclaim. Once capital is below £16,000 you will be able to make a claim for Universal Credit. Unfortunately you will need to have a new Work Capability Assessment to see if you are entitled to the extea health related element of UC. 

    Damn, do I have to apply for Universal Credit, why can I not apply for ESA?

    Thanks.
  • calcotticalcotti Member Posts: 2,196 Pioneering
    edited June 14
    calcotti said:
    Once you have more than £16000 any income based ESA and HB (ask CTR) will stop. If part of your ESA is contribution based that will continue. You should check the make up of your ESA.

    If some of your ESA is contribution based that will continue and once your savings are below £16,000 you can ask to have Income based ESA added back.

    If your ESA is all income based the claim will stop completely and you will not be able to reclaim. Once capital is below £16,000 you will be able to make a claim for Universal Credit. Unfortunately you will need to have a new Work Capability Assessment to see if you are entitled to the extea health related element of UC. 

    Damn, do I have to apply for Universal Credit, why can I not apply for ESA?

    Thanks.
    Because it is no longer possible to make new claims for income based ESA as UC has replaced it. As noted the situation is different if any of your ESA is contribution based - you need to check that out (if you do not already know).
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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