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ESA and PIP - Savings Limit
- Mikey
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2 months 1 week ago #294475 by Mikey
ESA and PIP - Savings Limit was created by Mikey
I was recently awarded PIP. The excellent guides that this website provide helped me to do so. So a big thanks to everyone.
I am also in receipt of ESA (Support Group).
I realise that being in receipt of PIP does not affect any savings that I may have. However, I believe that there is a limit of £6,000 that a person may have in savings before it affects their ESA entitlement. My query is this:
If a person is in receipt of both ESA and PIP - is there a limit to the amount of savings a person can have?
I am also in receipt of ESA (Support Group).
I realise that being in receipt of PIP does not affect any savings that I may have. However, I believe that there is a limit of £6,000 that a person may have in savings before it affects their ESA entitlement. My query is this:
If a person is in receipt of both ESA and PIP - is there a limit to the amount of savings a person can have?
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- LL26
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2 months 1 week ago #294484 by LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by LL26 on topic ESA and PIP - Savings Limit
Hi Mikey,
You are correct PIP is not means tested so savings are irrelevant. Having PIP does not affect the ESA capital (savings) limits.
If you are on Contribution based ESA then savings are also irrelevant.
For means tested ESA (sometimes called income-based) you can have up to £6,000 without any problem, no deductions etc. If you have more than £16,000 you are no longer eligible for ESA or other means tested benefit such as Housing Benefit or Council Tax Reduction.
Between £6,000 to £16,000 each £250 of savings over £6,000 will give rise to £1 deduction each week.
There are some exemptions if eg the money is from a back payment of benefit (such as after winning a benefits tribunal appeal. ) If the money has just built over the years then it would all be taken into account. Let us know if you need more information about the exemptions.
It is important to tell DWP immediately when your money goes over the savings threshold as otherwise it is likely you will get an overpayment, which could lead to serious consequences.
DWP may also query if you make large/untoward purchases to reduce your savings below the £6,000 limit. They might consider you have 'deprived' yourself of capital and DWP will therefore treat you as if the money had not been spent.
I hope this helps.
LL26
You are correct PIP is not means tested so savings are irrelevant. Having PIP does not affect the ESA capital (savings) limits.
If you are on Contribution based ESA then savings are also irrelevant.
For means tested ESA (sometimes called income-based) you can have up to £6,000 without any problem, no deductions etc. If you have more than £16,000 you are no longer eligible for ESA or other means tested benefit such as Housing Benefit or Council Tax Reduction.
Between £6,000 to £16,000 each £250 of savings over £6,000 will give rise to £1 deduction each week.
There are some exemptions if eg the money is from a back payment of benefit (such as after winning a benefits tribunal appeal. ) If the money has just built over the years then it would all be taken into account. Let us know if you need more information about the exemptions.
It is important to tell DWP immediately when your money goes over the savings threshold as otherwise it is likely you will get an overpayment, which could lead to serious consequences.
DWP may also query if you make large/untoward purchases to reduce your savings below the £6,000 limit. They might consider you have 'deprived' yourself of capital and DWP will therefore treat you as if the money had not been spent.
I hope this helps.
LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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