MIP and Income related ESA

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RSISolutions
RSISolutions Online Community Member Posts: 132 Contributor
in Employment and Support Allowance (ESA)
I am receiving mortgage interest payments and I am on Income related ESA. 
I am aware that you must declare any savings between £6,000 and £16,000 on IR ESA. However, do these savings affect MIP?

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  • isles
    isles Online Community Member Posts: 2 Listener
    What is the amount your partner is allowed to earn when claiming and do any work pensions affect your Claim 
  • Debbie_Alumni
    Debbie_Alumni Online Community Member Posts: 932 Empowering
    Hi@ RSISolutions,

    Yes they do, it's part of the whole benefit.

    Have you been contacted by the DWP yet about the changes to SMI in April 2018? The benefit is changing to Loans for Mortgage Interest. 

    There's some other discussions to look at
    https://community.scope.org.uk/discussion/34613/sim-changes
    https://community.scope.org.uk/discussion/33816/the-change-from-smi-benefit-to-a-loan#latest 

    Best wishes
    Debbie
  • RSISolutions
    RSISolutions Online Community Member Posts: 132 Contributor
    edited December 2017
    Hi @BenefitsTrainingCo and @Debbie_Scope

    So if I have £16,000 of savings (as an example), anything over £600 is taken into account. So that's £10,000 worth of savings to look at.

    They deduct £1 from my benefit for each £250 worth of savings over £6,000. So £10,000 divided by £250 is £40, to deduct from my benefit. Since my income related ESA is £102 - they deduct £40 from that which leaves me with £62 of benefit. 

    So how does this affect my mortgage interest payments? 
  • Debbie_Alumni
    Debbie_Alumni Online Community Member Posts: 932 Empowering
    Hi @RSISolutions,

    It's almost impossible to give you a definitive answer unfortunately, not without knowing more about your situation. The answer may lie in the Decision Maker's Guidance- Chapter 44  or in the legislation itself. It's very complicated though. There's been so many changes to the rules over the years and this makes it much more difficult to give you an answer on this one.
    Some capital can be disregarded too so there's more to this query than just the straightforward question of how the capital will affect the SMI. 

    I will look into this some more and if I find anything that might help, I'll let you know. I'm really sorry that I can't be more specific.

    Best wishes
    Debbie

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