ESA AND BANK BALANCE

Hi, my husband developed cancer and thank god we had critical illness cover which we have recently used all of this plus any savings we had to to clear off our mortgage.

Due to several health issues I am going to have to give up my job of 24 years. I would need to to claim ESA and as I am unfit for work I understand that my benefit would be means tested.

Would the fact that our bank account had quite a substantial sum of money in it until recently even though it is all gone and I can prove where it came from and where it went would I be disallowed my benefit. If so how long would I have to wait for my bank account to get back to normal before I could apply.

I would really appreciate some advise on this.

Thanks

Holly

Hi Holly,

I'm afraid that the rules regarding this are not clear cut (unless you have paid enough NI contributions to be entitled to contributory ESA, in which case what you have in your bank is immaterial).

Claimants who spend a lot of money quickly, just before claiming an income-related benefit, do raise suspicions in DWP. At worst, if they are judged to have spent the money deliberately in order to qualify for the benefit (do a computer search for 'Deprivation of Capital'). In this case, the claimant would be treated as if they still have the money and refused benefit.

Each Decision Maker will view cases differently. It would be worth contacting DWP and discussing this with them (you would need a call back from a manager as the call-centre staff would not have the authority to deal with this). You should also keep all receipts and take photo's, where possible, to back up your need for such spending.

Hi H,

If you have been working, and have the requisite number of NI Contributions for the last two qualifying years, (currently 2011-2012 and 2012 and 2013.) you would be entitled to Contribution Based (CB) ESA.

CB ESA is non means tested, so any capital, assets or savings that you may have will have no adverse effect. Nor would any income earned by a partner.

If you have an entitlement to an Occupational Pension, (OP) once this OP is in payment, there may be deductions from any CB ESA payments if the OP exceeds £85/Week.

There is a guide entitled : "Understanding Employment and Support Allowance. Our 42 page introductory guide to ESA." which may enlighten you further.

It is the 2nd link down on this page :

ESA Claims Guides

See also :

Our ESA FAQ’s

&

www.gov.uk/employment-support-allowance/overview

Once you make a claim for ESA, The DWP will check to see whether or not you have enough NI Contributions for entitlement to payment of CB ESA.

Please reply to this topic if you have any further queries.

bro58

I would be able to claim Contribution Based ESA but prior to the insurance money being lodged our savings were well under £10,000. If I go on to contribution based ESA and further down the line would I be able to apply for the income related ESA and if so how long would I have to leave it to apply.

Thanks

Holly

Thanks bro58 - I would not get an occupational pension as I have worked all my life in the private sector and do not have a pension plan.