Contrib ESA and property income

I am on contributory ESA.

Several years ago I did a small amount of permitted work (well under the weekly allowance) for a year or two. I did this as self-employed.

I have now been informed that DWP may take the money back as I also received income from a property I rent out. They are saying the rental income counts as regular income and that the two figures together breach the weekly PW allowance and so all my ESA should have been stopped.

As I understand it, this rental should not be classed as self-employed income, it is investment income. Investment income does not count when adding up any permitted work earnings, nor does it have any effect on contributory ESA (which is a non means tested benefit).

Am I correct?

The desk officer at DWP said they didn't know, all they knew is that there is an issue that has been raised and I have to send in loads of paperwork relating to the property.

Thanks.

I use an agent.

But have to say I really worried. Really worried. They are talking about me paying back all ESA for the two years in question.

Can I expect any other penalty? If this has breached the PW limits then it was a genuine mistake.

I've been looking at the rules in the DWP decision makers guides,

It is all very confusing.

Seems that as far as PW is concerned the rules about earnings are the ones that apply for the income-related ESA.

The question of rental income is hard to understand as this point. In one place they say renting out a single house is NOT classed as a business and is an investment, and then they say the income should be considered under the rules for income other than earnings (Chap 51).

However, if I was just on contrib ESA and did not PW, then those rules in chap 51 would not be considered as far as I can see,