Hi, my name is Sherlock221b! How will moving house effect my benefits

Sherlock221b

Hi here trying to get some information regarding moving house and how that will affect my benefits. So here's hoping!

Sue_Alumni

Good morning @Sherlock221b and welcome to the online community.

Moving house can be such a stressful experience and you are right to want to know how your benefits may be effected. Could I ask you which benefits you are claiming and whether you are moving in with anyone ? 

I've slightly amended the title of this thread to make it more visible to other community members. 

poppy123456

If you're claiming housing benefit to help with any rent, are you moving to a different local Authority or staying with the same one?

calcotti

Sherlock221b said:

Hi here trying to get some information regarding moving house and how that will affect my benefits. So here's hoping!

Can you state exactly what benefits you currently receive?

Sherlock221b

To Sue and Poppy thank you for your kind involvement.

Regarding the move, it's early days, but it most certainly will entail a change of local authority.

Below is a draft of the information I'm most interested in obtaining.  Without making things too long I've tried to include all the relevant details. But if there's something else you need - fire away, and thank you!

Sherlock221b

Hi Calotti,

As I state my wife and I get PIP which I understand is non means tested, and therefore is unaffected.

ESA which I get for my disability, and I'm in the support group.

Housing benefit which reduces my council tax.

And finally my wife receives carer's allowance on my behalf. 

calcotti

PIP is not affected.
CA is not affected.
ESA is not affected - but any income based ESA will end if you have to claim Universal Credit in order to get help with rent.
That last point depends on whether you are moving within the same local authority or moving to a new local authority.
If you move within the same authority you can simply update the HB claim.
If you are moving to a new local authority you will not be able to make a new HB claim in the new authority and to get help with rent will have to claim UC. that would end income based ESA (but any contribution based ESA would continue and be deducted from the UC).

Sherlock221b

Thank you for your valuable insight.  All of this is really a minefield, as I'm sure other contributors will confirm 
 I won't be paying any rent as I'll be buying the property outright. Will my ESA be impacted if we are left after the sale with a sizeable equity?

calcotti

Sherlock221b said:

Thank you for your valuable insight.  All of this is really a minefield, as I'm sure other contributors will confirm 
 I won't be paying any rent as I'll be buying the property outright. Will my ESA be impacted if we are left after the sale with a sizeable equity?

If you have more than £16,000 of capital then all entitlement to income based ESA will end. If any of your ESA is contribution based taht will not be affected. You need to clarify what your ESA is.

If you don't mind me asking - where is the capital to buy the house coming from? If you already have capital it should already be being taken into account.

Sherlock221b

OK. My ESA is income based. Hence my questions regarding the equity. For the sake of argument, suppose we buy a bungalow which is £50000 cheaper than what we sell my current house for (This is the capital you're asking about) What options are open to me? Can I use the excess £34000 to make legitimate alterations/improvements to bring me below that £16,000?

calcotti

Sherlock221b said:

OK. My ESA is income based. Hence my questions regarding the equity. For the sake of argument, suppose we buy a bungalow which is £50000 cheaper than what we sell my current house for (This is the capital you're asking about) What options are open to me? Can I use the excess £34000 to make legitimate alterations/improvements to bring me below that £16,000?

OK, confused because you referred to Housing Benefit which suggested you rent your home. Did you actually mean Council tax Reduction which reduces your Council tax bill. If the latter, you will lose that if you have capital - the capital limit varies between councils.

Sherlock221b

Yes, in sorry, you're quite right. This is indeed Council Tax Reduction and not Housing Benefit. I'm not sure off hand what the value is of the council tax where I live now, Southend. However, if and when I do move, I know it'll be out of this area.  

calcotti

For CTR every local authority has their own rules and can set their own thresholds.

Your immediate concern is to clarify, if you do not know, whether any of your ESA is contribution based.

Alex_Alumni

I'm glad to see that the community has been able to help @Sherlock221b and I wish you all the best with your move, you'll have to keep us updated. 

I take it you're a fan of the detective with the deer stalker hat?

Please do have a look around the forum if you'd like to, you can find all the latest conversations in our recent discussions category, all the different topics in our categories page, and you can meet and chat with other members over in our virtual coffee lounge too

Let us know if you need a hand with anything further.

Alex