Am I right in thinking that someone placed in the Support Group and with savings is not subject to £16,000 limit for savings? ie only people in Wrag are means tested? I ask as a friend in Support Group is coming to the end of 365 days of CB ESA.
You are almost right! People, like your friend, in the Support Group of contributory ESA are not subject to the 365 day limit on payment. They do not have to apply for income-related ESA and their income/savings are not taken into account (except for occupational pensions or sickness insurance). However, people who do not qualify for contributory ESA and are claiming Income Related can be placed in WRAG or Support Group and, for these people, saving and income would be relevant.
Just a word of warning - some people receive an income-related top up of their contributory benefit. Savings over £16000 would stop the top up but the contributory benefit would remain in payment.
Nothing on this board constitutes legal advice - always consult a professional about specific problems