Hi, advice appreciated regarding borrowing from family while on ESA

dedee85

Hi helpful people. Thank you for your time and all the help and advice you've given people over the years.

I've just started permitted work as a self employed trader but my funds are very low. Would a family member loaning me money to help get started be permitted while receiving Income Based ESA? The sum will possibly be £2000. Would this be seen as income and cause a breach of the weekly earning limit?

Thank you in advance

poppy123456

It will not be classed as income. It will be classed as capital and if it increases your total savings to more than £6,000 then your means tested benefits will reduce by £1 for every £250 over that amount. Anything over £16,000 and entitlement to means tested benefits end.

dedee85

Thank you Poppy

Should I contact the Job Centre and explain why a large sum has entered my account?

poppy123456

No, there’s no need to do this if it doesn’t take your total savings over the allowed amount, as advised.