Help needed for my mum. She has inherited 17000 pound

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becki1978
becki1978 Online Community Member Posts: 3 Listener
edited April 2022 in Benefits and income
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

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


  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited April 2022
    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.

  • becki1978
    becki1978 Online Community Member Posts: 3 Listener
    Thank you for your help we have started the ball rolling with this. Much appreciated 
  • Alex_Alumni
    Alex_Alumni Scope alumni Posts: 7,538 Championing
    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

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