esa reassessment due to change in circumstances

Hi,just a quick query on behalf of a friend. He has just had to sell his house,and move into local authority sheltered accommodation after becoming very ill last year, currently in receipt of ESA support group, DLA high rate mobility, middle rate care . The sale is due for completion this Friday and after the mortgage arrears are paid off he will receive around £10,800, which he must share with his mother, as they were joint owners of the property. He has just been sent a form ESA3, to reassess his ESA in regard to money he will receive from the house. My question is this, while we are filling in the form, and they are deciding his fate, will he still receive ESA, or will it be at the assessment phase rate, or stopped altogether. Many thanks for any help.

sarahh wrote: Hi,just a quick query on behalf of a friend. He has just had to sell his house,and move into local authority sheltered accommodation after becoming very ill last year, currently in receipt of ESA support group, DLA high rate mobility, middle rate care . The sale is due for completion this Friday and after the mortgage arrears are paid off he will receive around £10,800, which he must share with his mother, as they were joint owners of the property. He has just been sent a form ESA3, to reassess his ESA in regard to money he will receive from the house. My question is this, while we are filling in the form, and they are deciding his fate, will he still receive ESA, or will it be at the assessment phase rate, or stopped altogether. Many thanks for any help.

Hi sh,

The ESA 3 Form is used purely to assess the financial situation of your friend, it has no bearing on which group of ESA he is placed in.

The ESA50 Questionnaire is used to assess which group he is in.

Whether or not the capital gained will have any effect on payment of his ESA in The SG will depend on whether he is in receipt of IR ESA in The SG, CB ESA in The SG or both.

If he is in receipt of CB ESA only, then any capital, assets or savings that the friend may have will not have any effect.

If any part of his ESA is IR ESA, then the friend is allowed up to £6000, in capital, assets or savings, without it affecting his IR ESA.

Savings and assets over £6000 will result in a £1/week deduction for every £250 in excess of the £6000 up to £16,000.

Savings and assets in excess of £16,000 will remove eligibility for IR ESA.

Asset rule for ESA(IR)

IR ESA = Income Related ESA (Means Tested ESA)

CB ESA = Contribution Based ESA (Non Means Tested ESA)

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