IR ESA

mrsdoyle wrote: I have been in the CB ESA support group for approx 2 years. My life savings have now dropped below £16000,will I be automatically changed to IR ESA or do I have to inform DWP,Does this also mean I will be worse off,losing £4 for every thousand in savings between £6000 and £16000 ? Thank you for your help.

Yes, you need to contact the DWP, they will send you an ESA3 to complete which captures your financial situation so that they can decide your entitlement to ESA(IR).

You can't be paid less than you are currently receiving.

ESA(IR) will only go into payment if the amount you would receive is more than any deductions you would have from your savings and assets. From the limited information you have provided I would expect your potential ESA(IR) payment would be £15.75 with deductions of £40 meaning that the ESA(IR) would not be payable until your saving were about £10,000, I've assumed that you are single, if you are in a couple then the calculation would be different. See

Asset rule for ESA(IR)

24 hour work rule for ESA(IR)

Gordon

mrsdoyle wrote: Thank you for your reply Gordon,Im a bit confused,I currently receive £108.15 weekly,you say I will not be paid less than I am currently receiving,What is the £15.75 fiqure you have quoted ? Is IR ESA paid on top of CB ESA ?please could you take me through the procedure and calculations,my brain is not very good anymore! Thank you.

On the understanding that the following is just an illustration and that you would need to look at your own personal circumstances.

First of all, ESA(CB) is always paid if the claimant is entitled, so any ESA(IR) would be paid as a top-up to that.

The DWP calculate any ESA(IR) initially as if you are only receiving ESA(IR), then they deduct any income, this would include your ESA(CB) and notional income from your savings. If there is still any ESA(IR) left then it is added to your ESA(CB), if there is none then just the ESA(CB) is paid,

So for your the ESA(IR) calculation is

£73.10 - Personal Allowance
£36.20 - Support Group
£15.75 - Enhanced Disability Premium for being in the SG
=====
£125.05

Then you deduct your ESA(CB)

£125.05 -
£109.30
======
£15.75

Then the notional income from your savings

£16,000 minus disregarded savings
£6,000
======
£10,0000 notional income is £1 for every £250 above £6,000
£250
=======
£40.00

Remaining ESA(IR) minus notional income

£15.75
£40.00
=====
-£24.25

As the ESA(IR) is less than zero there is no payment.

Once your savings have reasonably reduced such that the notional income is £15,74 then ESA(IR) would go into payment, obviously if you have other benefits or income then the calculations would be different.

Gordon