Benefit cap ..

Deepthoughts
Deepthoughts Online Community Member Posts: 7 Listener
in Universal Credit (UC)

Hello everyone!

I have received my Universal credit migration letter and will get to this in due course. But for now I only have the one question -

Screenshot_20241209_172944_Gallery.jpg

Due to being in the Esa support group as well as the Esa income. Does that mean I will not be affected by the benefit cap on savings up to £ 16, 000 ?

Many thanks for any help on this query.

Comments

  • Morgan_Scope
    Morgan_Scope Posts: 782 Scope Online Community Coordinator

    Hello @Deepthoughts. The benefit cap is not the same as the savings cap. The benefit cap is the maximum amount that a person can claim in benefits unless certain conditions apply (for example receiving PIP or earning above a certain amount).

    With you receiving ESA Support Group you are exempt from the benefit cap. However, the savings limit of £16,000 still applies to income-related benefits.

    Are you sure you are claiming income-related ESA? If you have more than £16,000 in savings in most cases you would not be able to claim income-related ESA.

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    Hello Sir, and thank you for such a speedy reply.

    I am in receipt of ESA SG and IR. PIP and Housing benefit. No other form of income as I do not work. All go into 1 bank account. So will the Dwp view that as savings if it is over £ 6000 ?

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    Oh and perhaps I should add I have the SDP in place, also.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Savings/capital of less than £6,000 is ignored. For every £250 or part thereof over that amount your ESA reduces by £1/week. If you have more than £6,000 you must report the changes.

    Savings/capital of more than £16,000 means entitlement to all means tested benefits end.

    Please also be aware that if you’re claiming council tax reduction some local Authorities have a maximum savings limit of £6,000 before entitlement ends.

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    Well I do have in excess of £ 6000 but not more than £ 16, 000.

    When I initially bought this up some time ago my autistic advocate claimed that I would not be deducted any Esa because I had the severe disability premium in place. So are you saying now that I have to contact the Dwp regardless of that information -

    Also surely that is going to trigger me moving to UC much quicker?

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    I am not claiming council tax deduction 😊

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    This is incredibly wrong as my support worker was removed and never replaced ..

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    https://forum.scope.org.uk/discussion/comment/952580#Comment_952580

    The advocate was incorrect. Claiming Severe disability Premium doesn't exclude you from the savings/capital levels. SDP is part of a means tested benefit so is affected by savings/capital.

    If you received any of the cost of living payments all of those are disregarded indefinitely, unless your total savings amount dropped below the total amount you received at anytime.

    Also the benefits payments you receive are not counted as savings until the end of the period they are paid for if you have anything left.

    Yes, if you have more than £6,000 you must report the changes to ESA. It will not trigger a move to UC but you've received your migration letter anyway and will need to claim by the date in the letter.

  • Deepthoughts
    Deepthoughts Online Community Member Posts: 7 Listener

    Ok. But obviously some of the payments to raise it above the cap are PIP payments which aren't means tested so how on earth do they work out what I will receive without dissecting my bank account?

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    PIP itself isn't means tested so not affected by capital/savings. The money you have left from it at the end of the period it's paid for are treated as capital/savings in the same way as all your other savings.

    All the money you have at home, in a bank/savings account, ISA's and anywhere else that you have money or capital are all counted, apart from a pension pot, which is disregarded up until you reach state pension age.

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