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TOPIC: Capital, Income-related benefits

Capital, Income-related benefits 4 days 10 hours ago #241431

Hi, can I ask: if a person is in receipt of income-related ESA with Severe disability premium and they get left a sum a little over £16K, one would expect payments to stop (to include HB) until the capital is eroded to below that figure, but when as inevitably, they have less than £16K do their payments restart (minus the notional capital) or are they then forced to claim Universal Credit without the SDP transitional protection?
i.e does exceeding the capital limit close their IR-ESA claim, or just suspend payments?
Thanks for looking. I've tried really hard to find the answer to this. Has anyone experience of this situation?

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Capital, Income-related benefits 4 days 1 hour ago #241446

jace

Historically, you could go back onto ESA(IR) but this is may no longer the case unless you are also entitled to Contribution Based ESA.

If you are only receiving ESA(IR) then exceeding the £16,000 limit removes your entitlement to ESA(IR) and closes your claim, you can no longer make a new claim for what is now called legacy ESA unless you have been entitled to or were receiving the SD Premium in the previous month before you claimed.

I have seen an argument that being eligible to the Premium even if it was not paid in the last month allows a reclaim of legacy ESA but as far as I can see it is untested with the DWP and they may take the view that you can only make a claim for Universal Credit which, of course, would not take account of the Premium.

Gordon
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Last edit: by Gordon.
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