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ESAcb, duty to report change of circumstances due to inheritance?

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1 year 10 months ago #270416 by NorthernHeights
Hi forum,

I may have made a rash assumption when I inherited more than £16k from my deceased dad's estate. I am in receipt of ESAcb plus a top-up is which I believe something to do with disability as I'm also on DLA.
As my ESAcb isn't means tested, I didn't bother to declare this financial change of circumstance to the DWP. However, long story short about issues of HB and CT relief with my local authority led me to be contacted by Citizen's Advice.

As soon as the phone call started, the CA advisor kept going on that I should declare my inheritance to DWP in spite of it not being means tested. I realised that I may have told a support worker too much by mentioning my ESAcb, as that was all the CA agent wanted to talk about, which was most distressing! It wasn't actually what I'd asked for help with, but it seemed like I was being coerced into doing something I was unsure of.
I finally got them off the subject by just saying you can only advise me, now please let's get on with making sure I don't get evicted from my council flat for HB fraud, and prosecuted for Council Tax evasion?!
This latest situation has totally upended me emotionally and is playing havoc with my ADHD and ASD.

Now I'm more calm and collected since this happened yesterday, I need advice about the following:

Have I broken any DWP rules by not declaring my inheritancedespite my ESA not being means tested?
Would such a declaration be a trigger event to at least stop my claim - if not also see me prosecuted for fraud?
I guess I wouldn't be entitled to UC anyway because of the sliding scale they have for claimant's savings etc.
I also imagine that my DLA would be stopped, and I'd have to claim for PIP instead.
Would my disabled person's rail card and council issued disability freedom pass be invalidated as a result of any of the above?

Please advise, and help me make any necessary next steps if needed.

NH

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1 year 10 months ago - 1 year 10 months ago #270431 by LL26
Hi Northern Heights,
ESAcb is NOT means tested. However it concerns me that you say you get a top up for your disability which I am confused about. If you are entitled to ESAcb but fall below the income guarantee level, then you may well get a means tested top up and hence receive both ESAcb and means tested ESA. If you genuinely are on ESAcb and the extra amount isn't means tested you have nothing to worry about, assuming that you still have limited capability for work or work activity.
If there is a means tested element then you MUST disclose your inheritance as it is entirely likely that you are being overpaid. You must tell DWP now and without further delay. If you know you are no longer entitled to benefit (and having over £16k in the bank would disallow means tested benefit) then you are committing fraud and could be prosecuted as well as needing to repay.
Both Housing Benefit and Council Tax Reduction ARE means tested so will no longer be payable with £16k+ savings.
If you have inherited a share of a house rather than actual money there is usually a period of grace to allow a sale. Normally when a claimant inherits money above the capital limit, it would be expected that you run down your capital and then once under the limit you could reply for benefit. (This may have to be UC.) As long as your expenditure is reasonable it will be allowed.You could legitimately spend money on necessary repairs, new car, and possibly a holiday as long as these are reasonable, not excessive and most importantly keep receipts. You won't have to declare your inheritance for purely ESAcb, but you will need to inform the local council if receiving benefits from them.
DLA is NOT means tested so there should be no problem continuing to receive this and your benefit shoukd continue.
If you are on means tested benefit since you are precluded by law from receiving these benefits, your claim will have to cease until your capital is reduced as described above. It is likely an overpayment will exist and need to be repaid.
If you do notify DWP do it by phone immediately- keep note of time, day and name of advisor. I would suggest you follow this up with a letter, which could be sent recorded delivery. I am not sure that you are not on any means tested benefit.
For the avoidance of any doubt and to safeguard yourself you may wish to phone DWP (keep note of call per above) and ask if you are on ESAcb only and whether you need to disclose.
The important thing is not to ignore this problem it may not go away and could become much worse!
I hope this helps.
LL26

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 1 year 10 months ago by LL26. Reason: Omission.

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1 year 10 months ago #270433 by Gordon
NorthernHeights

Just to add to LL26's excellent advice.

If the additional payment you are receiving is marked as the "Disability Income Guarantee" or "Money because you are severely disabled" then you are indeed receiving at the very least an Income Related ESA top-up.

Gordon

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

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1 year 10 months ago #270443 by NorthernHeights
Hi LL26, and thank you. Come to think of it, I'm pretty sure the extra is due to me being in the ESA Supported Group. I haven't a clue if this is means tested, but if you could please put me straight about that, it will be most useful.

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1 year 10 months ago #270445 by NorthernHeights
I have just looked at the most recent letter from DWP I can find about my ESA, and I'm even more confused by its wording.
Could I upload a screenshot of the confusing part without showing the top with my name and NINo on it?

Part of my award is indeed Disabilty Income Guarantee and definitely a Support Group element.

"The Employment and Support Allowance Award

The payment of Employment and and Support Allowance is based on your NI Contribution records and any additional amount the law says you need to live on."

Ten it mentions the Disability Income guarantee part, the Supported Group part, but then the confusing bit which seems to contradict the above.... "Which gives a total income related amount of... £(my total ESA award!)

On another page, it says I am entitled to both ir and cb ESA.

Well, I think I had better do as advised and ring them, plus send a recorded letter to back it up. I just need a trusted support professional to be there when I do make the call plus help prepare what I need to ask clearly, or it will all go horribly wrong because of why I'm on health related benefits.

Thanks once again.

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1 year 10 months ago #270449 by Gary
Hi NorthernHeights

Being in receipt of the support group does not mean that you are means tested but if you receive any other disability premiums such as enhanced or severe disability premium then you will be claiming a means tested top up benefit.

Gary

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