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Help needed for my mum. She has inherited 17000 pound

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becki1978
becki1978 Community member Posts: 3 Listener
Good evening I'm wondering if anyone can help me. 
My mum is in receipt of PIP and ESA as well as housing benefit and council tax benefit. 
She has inherited 17000 pound from a relation and now we don't know what to do. 

So far she has paid off debts amounting to almost 5000 pound so now has around 13000 pound left. 

I've googled and all the answers are so confusing. 

What should we do now so that my mum doesn't get into trouble. 
And how will her benefits be affected? 

Will she get into trouble for clearing her debts? 

Any help would be great

Comments

  • woodbine
    woodbine Community member Posts: 12,125 Disability Gamechanger
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    @becki1978 good evening and welcome to scope, firstly her PIP will not be affected by her capital, secondly we will need to know if her ESA is income based/cont.based or both, here CTR and HB will be affected and she needs to notify the council immediately.

    2024 Election won

  • becki1978
    becki1978 Community member Posts: 3 Listener
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    Her esa income based. 


  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    edited April 2022
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    As advised by woodbine, PIP is not affected.

    If any of the ESA is contribution based that part is unaffected.

    For means tested benefits she will be assumed to receive an income of £1/week for every £250, or part thereof, over £6,000.

    For any period during which she was in possession of more than £16,000 she will not have been entitled to income based ESA, Housing Benefit or Council Tax Reduction. Given that her capital is now below that level the benefit agencies will hopefully look at entitlement during the closed period when capital was exceeded and allow the benefits to continue. She will undoubtedly have to provide full details of when the money was received and when and how it was spent.

    Payment of Debt will not necessarily be accepted as reasonable but can only be treated as deprivation of capital if a motivating factor was maintaining benefit entitlement. Given the circumstances Were the DWP to reach that decision you could certainly challenge it.

    She needs to inform ESA and the local authority as soon as possible. Payment of benefits will likely be suspended while her circumstances are reviewed.

    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • becki1978
    becki1978 Community member Posts: 3 Listener
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    Thank you for your help we have started the ball rolling with this. Much appreciated 
  • Alex_Alumni
    Alex_Alumni Scope alumni Posts: 7,561 Disability Gamechanger
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    I'm glad to hear our members have been able to help @becki1978 :)

    Enjoy the long Easter weekend and let us know how things go for you.

    If any other questions come up in the meantime, please do ask.

    Alex
    Online Community Coordinator
    Scope

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