Savings and benefits

System · November 2023

This discussion was created from comments split from: Would you accept having your bank account checked?.

Tumilty · November 2023

It's for savings isn't it? and if in receipt of ESA or PIP or a benefit received because of health then savings isn't a problem, just if your currently on JSA and have a lot of money in bank it then counts... What about Housing benefit? .. I'm sure anxiety/depression etc benefits & housing can go hand in hand?

poppy123456 · November 2023

Tumilty said:

It's for savings isn't it? and if in receipt of ESA or PIP or a benefit received because of health then savings isn't a problem, just if your currently on JSA and have a lot of money in bank it then counts... What about Housing benefit? .. I'm sure anxiety/depression etc benefits & housing can go hand in hand?

PIP isn’t affected by savings. Housing benefit and Income Related ESA are affected by savings. Income Related JSA is also affected by savings. As well as Universal Credit and council tax reduction.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

It's for savings isn't it? and if in receipt of ESA or PIP or a benefit received because of health then savings isn't a problem, just if your currently on JSA and have a lot of money in bank it then counts... What about Housing benefit? .. I'm sure anxiety/depression etc benefits & housing can go hand in hand?

PIP isn’t affected by savings. Housing benefit and Income Related ESA are affected by savings. Income Related JSA is also affected by savings. As well as Universal Credit and council tax reduction.

it says on Scope website that ESA isn't affected by savings along with PIP, i'm worried about losing my home.. In a panic.

surfygoose · November 2023

Income related ESA is means tested so it is affected if you have too much savings. Maybe that was contributions based ESA that the website was talking about.

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

It's for savings isn't it? and if in receipt of ESA or PIP or a benefit received because of health then savings isn't a problem, just if your currently on JSA and have a lot of money in bank it then counts... What about Housing benefit? .. I'm sure anxiety/depression etc benefits & housing can go hand in hand?

PIP isn’t affected by savings. Housing benefit and Income Related ESA are affected by savings. Income Related JSA is also affected by savings. As well as Universal Credit and council tax reduction.

it says on Scope website that ESA isn't affected by savings along with PIP, i'm worried about losing my home.. In a panic.

You have either misunderstood some of what you've read or you haven't read the all information completely because that's not exactly what it says.

PIP isn't affected because it's not means tested. However, if you have any of your PIP money left at the end of the period it's paid for then it becomes savings and will affect any means tested benefits you're claiming, if you have more than £6,000.

There's 3 types of ESA, the old contributions based, New style and Income Related. The old contributions based and New style ESA are both not affected by savings/capital.

Income Related ESA is affected by savings of more than £6,000. For every £250 or part thereof over this amount there's a £1/week deduction. Savings of more than £16,000 means there's no entitlement to any means tested benefits. Here's the link you read https://www.scope.org.uk/advice-and-support/employment-and-support-allowance/ the following was taken from that link.

Income-related ESA savings limits

If you are receiving income-related ESA, this is affected by savings limits. Other benefits can also be affected by savings. For example, Universal Credit.

Savings and benefits

The savings limits for income-related ESA are:

under £6,000: your benefit claim is not affected by your savings
between £6,000 and £16,000: you lose some of your benefit payment
more than £16,000: you’re not eligible

Every £250 over £6,000 counts as if you had £1 of weekly income.

Which ESA are you claiming? Do you have savings/capital of more than £6,000? if you do then you need to report the changes to all means tested benefits. For council tax reduction some local Authorities have a maximum savings limit of £6,000 before entitlement ends. If you're claiming 25% single person discount this isn't affected by savings.

Tumilty · November 2023

surfygoose said:

Income related ESA is means tested so it is affected if you have too much savings. Maybe that was contributions based ESA that the website was talking about.

Hi
I don't have an income so does that mean i'm contributions based?

poppy123456 · November 2023

Tumilty said:

surfygoose said:

Income related ESA is means tested so it is affected if you have too much savings. Maybe that was contributions based ESA that the website was talking about.

Hi
I don't have an income so does that mean i'm contributions based?

No, Income Related ESA is a name they use for a means tested benefit. Are you in the Support Group? If so and your ESA is more than £129.50 per week ( £259/fortnight) then at least part of it is Income Related. If it's £129.50/week then this will be either contributions based or New style and neither are means tested.

However, if you're claiming housing benefit and council tax reduction then both are means tested so affected by savings of the amounts advised in my previous comment.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

surfygoose said:

Income related ESA is means tested so it is affected if you have too much savings. Maybe that was contributions based ESA that the website was talking about.

Hi
I don't have an income so does that mean i'm contributions based?

No, Income Related ESA is a name they use for a means tested benefit. Are you in the Support Group? If so and your ESA is more than £129.50 per week ( £259/fortnight) then at least part of it is Income Related. If it's £129.50/week then this will be either contributions based or New style and neither are means tested.

However, if you're claiming housing benefit and council tax reduction then both are means tested so affected by savings of the amounts advised in my previous comment.

i'm sorry i'm unsure, i'm in auto pilot when anxious it's £298 i think per fortnight & i get housing benefit so i guess i'm gonna lose my flat that i rely on 😞

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

surfygoose said:

Income related ESA is means tested so it is affected if you have too much savings. Maybe that was contributions based ESA that the website was talking about.

Hi
I don't have an income so does that mean i'm contributions based?

No, Income Related ESA is a name they use for a means tested benefit. Are you in the Support Group? If so and your ESA is more than £129.50 per week ( £259/fortnight) then at least part of it is Income Related. If it's £129.50/week then this will be either contributions based or New style and neither are means tested.

However, if you're claiming housing benefit and council tax reduction then both are means tested so affected by savings of the amounts advised in my previous comment.

i'm sorry i'm unsure, i'm in auto pilot when anxious it's £298 i think per fortnight & i get housing benefit so i guess i'm gonna lose my flat that i rely on 😞

The suggests that at least part of it is Income Related. What makes you think you're going to lose your home? Do you have savings of more than the allowed amount and you haven't reported the changes?

Tumilty · November 2023

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

poppy123456 · November 2023

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Tumilty · November 2023

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings.
Yes, since I been ill I havent spent much, I'm unsure what esa I'm on and yes I'm worried about losing my flat as it is counted.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

Money owed from backdated benefits isn't counted as savings for 1 year from the date you receive it.

ESA letters are well known for being very difficult to understand. Although the amount you're receiving does suggest that at least part of it is Income Related.

In a previous comment you mentioned being worried about your flat because it's counted but you're claiming housing benefit. The flat itself isn't yours as it belongs to your landlord so this isn't counted as capital.

If your total savings are less than £6,000 then you do not need to do anything. If they are more than £6,000 then you need to contact ESA and housing benefit because both of those will be reduced. If your savings are more than £16,000 then all your means tested benefits will end.

I'm really not sure what else to advise you on, other than all changes must be reported.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

Money owed from backdated benefits isn't counted as savings for 1 year from the date you receive it.

ESA letters are well known for being very difficult to understand. Although the amount you're receiving does suggest that at least part of it is Income Related.

In a previous comment you mentioned being worried about your flat because it's counted but you're claiming housing benefit. The flat itself isn't yours as it belongs to your landlord so this isn't counted as capital.

If your total savings are less than £6,000 then you do not need to do anything. If they are more than £6,000 then you need to contact ESA and housing benefit because both of those will be reduced. If your savings are more than £16,000 then all your means tested benefits will end.

I'm really not sure what else to advise you on, other than all changes must be reported.

OK, I just thought reporting change was if I was getting better or gotten a job etc, not tell them about the money they've been paying me because I qualify for the benefit. If nowt been going out then money will build up. If my flat is not counted as capital I don't understand why it affects the housing benefit. I'd lose the flat if hb wasn't paid.
Also they've just increased my monthly payment too.

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

Money owed from backdated benefits isn't counted as savings for 1 year from the date you receive it.

ESA letters are well known for being very difficult to understand. Although the amount you're receiving does suggest that at least part of it is Income Related.

In a previous comment you mentioned being worried about your flat because it's counted but you're claiming housing benefit. The flat itself isn't yours as it belongs to your landlord so this isn't counted as capital.

If your total savings are less than £6,000 then you do not need to do anything. If they are more than £6,000 then you need to contact ESA and housing benefit because both of those will be reduced. If your savings are more than £16,000 then all your means tested benefits will end.

I'm really not sure what else to advise you on, other than all changes must be reported.

OK, I just thought reporting change was if I was getting better or gotten a job etc, not tell them about the money they've been paying me because I qualify for the benefit. If nowt been going out then money will build up. If my flat is not counted as capital I don't understand why it affects the housing benefit. I'd lose the flat if hb wasn't paid.
Also they've just increased my monthly payment too.

No, not when you’re claiming means tested benefits as I keep advising. If you have savings of more than the allowed amount then this is a change you must report. Not reporting it can be seen as fraud because you didn’t report the changes.

When you have savings of more than the allowed amount then you’re expected to pay your bills such as your rent from your savings. You can’t be expected to continue with your means tested benefits if you have more than the allowed amount.

Are your savings less or more than £6,000? Not including the cost of living payments and the backdated money from any benefits within the last year.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough

That means your ESA, housing benefit and council tax reduction (assuming you claim this) are all affected by savings of more than £6,000. If you have less than this amount of savings, you have nothing to worry about.

Tumilty · November 2023

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

Money owed from backdated benefits isn't counted as savings for 1 year from the date you receive it.

ESA letters are well known for being very difficult to understand. Although the amount you're receiving does suggest that at least part of it is Income Related.

In a previous comment you mentioned being worried about your flat because it's counted but you're claiming housing benefit. The flat itself isn't yours as it belongs to your landlord so this isn't counted as capital.

If your total savings are less than £6,000 then you do not need to do anything. If they are more than £6,000 then you need to contact ESA and housing benefit because both of those will be reduced. If your savings are more than £16,000 then all your means tested benefits will end.

I'm really not sure what else to advise you on, other than all changes must be reported.

OK, I just thought reporting change was if I was getting better or gotten a job etc, not tell them about the money they've been paying me because I qualify for the benefit. If nowt been going out then money will build up. If my flat is not counted as capital I don't understand why it affects the housing benefit. I'd lose the flat if hb wasn't paid.
Also they've just increased my monthly payment too.

No, not when you’re claiming means tested benefits as I keep advising. If you have savings of more than the allowed amount then this is a change you must report. Not reporting it can be seen as fraud because you didn’t report the changes.

When you have savings of more than the allowed amount then you’re expected to pay your bills such as your rent from your savings. You can’t be expected to continue with your means tested benefits if you have more than the allowed amount.

Are your savings less or more than £6,000? Not including the cost of living payments and the backdated money from any benefits within the last year.

i'm sorry i knew nothing about this, i know you mentioned before but when i panic my mind goes blank & autopilot sets in. so i will report it but it's not that much over £6000..

So i will have £1 per £250 that exceeds the £6000 taken away from future ESA payments or do i have to pay back monies over £6000?
If it's the former then it's about £7 per each fortnightly payment, It that correct?

When i contact DWP will this automatically happen in my next payment or is it more complex than that.. I'm sorry if i made you impatient with me.. Thanks

poppy123456 · November 2023

Tumilty said:

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

poppy123456 said:

Tumilty said:

I have no idea. I get esa and pip, what mi mum gave me and get housing benefit so unsure what amount is what.

What did your mum give you? Do you have more than £6,000 in savings?

Hi

It seems I'm in income based as I haven't paid enough NI contributions according to my last correspondence on paper with them.
I won an appeal at tribunal and was paid back a significant sum that I hear does count according to man I spoke to on phone to scope, also the money not used during lockdowns. Also since 2020 when I first got esa there have been many increases in how much I got from £260 initially to the amount now of £295
Im unsure of what to do.. Housing benefit also.
Advice appreciated

Money owed from backdated benefits isn't counted as savings for 1 year from the date you receive it.

ESA letters are well known for being very difficult to understand. Although the amount you're receiving does suggest that at least part of it is Income Related.

In a previous comment you mentioned being worried about your flat because it's counted but you're claiming housing benefit. The flat itself isn't yours as it belongs to your landlord so this isn't counted as capital.

If your total savings are less than £6,000 then you do not need to do anything. If they are more than £6,000 then you need to contact ESA and housing benefit because both of those will be reduced. If your savings are more than £16,000 then all your means tested benefits will end.

I'm really not sure what else to advise you on, other than all changes must be reported.

OK, I just thought reporting change was if I was getting better or gotten a job etc, not tell them about the money they've been paying me because I qualify for the benefit. If nowt been going out then money will build up. If my flat is not counted as capital I don't understand why it affects the housing benefit. I'd lose the flat if hb wasn't paid.
Also they've just increased my monthly payment too.

No, not when you’re claiming means tested benefits as I keep advising. If you have savings of more than the allowed amount then this is a change you must report. Not reporting it can be seen as fraud because you didn’t report the changes.

When you have savings of more than the allowed amount then you’re expected to pay your bills such as your rent from your savings. You can’t be expected to continue with your means tested benefits if you have more than the allowed amount.

Are your savings less or more than £6,000? Not including the cost of living payments and the backdated money from any benefits within the last year.

i'm sorry i knew nothing about this, i know you mentioned before but when i panic my mind goes blank & autopilot sets in. so i will report it but it's not that much over £6000..

So i will have £1 per £250 that exceeds the £6000 taken away from future ESA payments or do i have to pay back monies over £6000?
If it's the former then it's about £7 per each fortnightly payment, It that correct?

When i contact DWP will this automatically happen in my next payment or is it more complex than that.. I'm sorry if i made you impatient with me.. Thanks

There’s a £1 per week deduction for every £250 or part thereof over £6,000. You will also need to report the changes to your local Authority for housing benefit and council tax reduction.

For council tax reduction some LAs have a maximum savings limit of £6,000 before entitlement ends.

If part of those savings include money from the cost of living payments these are disregarded indefinitely and are not counted in your savings.

Same applies to any backdated money from any benefits that you may have received with in the past 12 months, this is also disregarded. After those 12 months it will be counted in with your savings.

Yes any overpayment will need to be repaid back. There may also be a small fine of about £50 on top for not reporting the changes.

Your fortnightly ESA payments are not counted as savings until the end of the period they are paid for.

Savings and benefits

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Income-related ESA savings limits

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