Hi, my name is Evelyn1! underpaid joint ESA from 2016. WIll backpay be seen as capital?

Evelyn1
Evelyn1 Online Community Member Posts: 4 Listener

Hi I was contacted yesterday to inform me that I have been underpaid my joint ESA from 2016. It is in the region of £16000/£17000 that I have been underpaid. When I get this paid will the DWP see this as capital & stop my ESA payments as I will be over the £16000 threshold?

Thanks in advance for any enlightment into this.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,074 Championing

    No it won't be treated as capital. If this was because it's an official error by DWP then it will be disregarded from means tested benefits for the life of your claim because it's more than £5,000.

    If it's because of any other reason then it will be disregarded for 1 year.

  • Evelyn1
    Evelyn1 Online Community Member Posts: 4 Listener

    Thank you so much for this information poppy123456

  • Kimmy87
    Kimmy87 Online Community Member Posts: 2,667 Championing
    edited January 10

    https://www.scope.org.uk/advice-and-support/lump-sum-payments-and-benefits

    There is definitely a 12 month disregard from this momey being counted as capital.

    There may also be an indefinite disregard (that also carries over when you migrate to UC), because the amount is over £5000.

    What was the cause of the under payment?

  • Evelyn1
    Evelyn1 Online Community Member Posts: 4 Listener

    I was told that I had been put in the wrong group,I should have been in the support group which I have not been.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,074 Championing

    If the decision at that time was Support Group and you weren't receiving extra money for this then that will be an official error. When you receive the decision letter, if it's disregarded for life it should advise that on the letter. The disregard will also apply to Universal Credit when you eventually migrated to that.

  • Evelyn1
    Evelyn1 Online Community Member Posts: 4 Listener

    Thank you.