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ESA repayment - Declaring lump sum to council?

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4 years 10 months ago #232525 by Nicola Reid
Hi all,

(Writing on a claimants behalf)

The claimant in question has been back-paid a substantial amount of money from the DWP due to them not calculating the correct amount over many years since transferring from IB to ESA - as I'm sure you have seen in the news, thousands of claimants are due to receive these back-payments.

The DWP is very clear that as far as their benefits (PIP etc) are concerned, this lump sum is disregarded when it comes to declaring savings when applying for these benefits - however - the claimant also receives a few benefits via the local council, such as Adult social care direct payments, housing benefit, discretionary housing benefit etc.

The DWP cannot commit to an answer regarding whether or not we should be declaring this lump sum to the council. I've attempted to speak with the council regarding this and the people I have spoken to (multiple attempts) either don't know, or refuse to discuss it.

Has anyone had any experience of this? The DWP made it clear in Parliament that claimants will not lose out by having they back-payments 'clawed back' through other benefits - but this seems to only cover their own benefits - will the council have the right to define this lump sum as 'savings' and therefore disqualify the claimant from said benefits?

As it currently stands, we will be declaring it on the forms but I'm very aware that as this is a relatively new thing (people getting these back-payments) the councils may not have a defined policy on it yet - and I don't want to confuse matters/delay payments/get caught in weeks of back and forth etc if it has already been ruled somewhere that it need not be declared.

Any assistance greatly appreciated!

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4 years 10 months ago #232546 by Gordon
Nicola

My understanding is that the back payment is disregarded for the purposes of ESA and is therefore disregarded for Housing Benefit, the rules for DHP are different and it is possible that it will be considered, the same may apply to Adult Social Care payments but I would appeal any reduction as the problem results from a DWP Error.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Nicola Reid

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4 years 10 months ago #232572 by keeptrying
Replied by keeptrying on topic ESA repayment - Declaring lump sum to council?
Hi
I have had quite a sizeable back payment and I printed out the amounts/dwp letters for the council
they said clearly it would not affect my HB or CT since the dwp were still paying me and were thus not counting it as savings

frustratingly although the dwp have not counted this money - they have not provided me with any written explanation of how long it will be disregarded for or if they would impose restrictions on how it is spent
I guess i need to write and ask for that information

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4 years 10 months ago #232586 by Gordon
Walker

The back payment should be disregarded as long as the claim is continuous, this would include a transfer to Universal Credit. As the money is disregarded there should be no restrictions on how it is spent but I would still recommend caution.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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