Savings and Contributions

My GP has advised me that my medical condition CBD for which I am claiming benefits may result in my death within the year, and consequently I have advised the two companies that were going to provide me with a pension once I had reached the age of 65.

They have now provided me with two lump sums in final settlement of any further claim.

This now takes my savings over the threshold of £16,000. There might well be alterations to be made to the family home as my condition gets worse, and needs arise.

I have understood that as I was claiming ESA through Contributions paid, any savings were not included in any calculations that would affect the benefit that I was receiving.

I would be grateful for any clarification on this matter, as I don't want to be accused of Benefit fraud.

Thank You
UKSJ

ESA (conts) does not include any means tested element so the amount of savings that you have will not affect your ESA claim at this time. If it was ESA (IS) then savings would be taken into account.

If you were claiming Housing Benefit though then I think savings over £6000 have an impact. I think it's something like HB reduced by £1 for every £500 in savings?

Because of the severity and prognosis of your illness it might also be worth checking with your local CAB and/or Carers centre. It would also be worthwhile, for your own peace of mind, to phone your local Jobcentre to clarify matters with them.

I mention this here because over the last few years I had Power of Attorney over my father's affairs, and there's certain conditions that may come into play if you actually need to go into a care home, for example.

Keith wrote:

My GP has advised me that my medical condition CBD for which I am claiming benefits may result in my death within the year, and consequently I have advised the two companies that were going to provide me with a pension once I had reached the age of 65.

They have now provided me with two lump sums in final settlement of any further claim.

This now takes my savings over the threshold of £16,000. There might well be alterations to be made to the family home as my condition gets worse, and needs arise.

I have understood that as I was claiming ESA through Contributions paid, any savings were not included in any calculations that would affect the benefit that I was receiving.

I would be grateful for any clarification on this matter, as I don't want to be accused of Benefit fraud.

Thank You
UKSJ

Hi,

If you are receiving an 'ongoing' pension from your pension provider that may affect the amount of Contributory ESA you receive. You must inform the DWP Office dealing with your claim if you do start to receive an ongoing pension, even if under the threshold (£85 per week). To be honest in the circumstances of a lump sum 'in lieu' of a weekly pension' I am not exactly sure whether or not that would be included (lump sums are usually not taken into account but they are normally paid with an ongoing pension which is taken into account). To be safe I would inform the DWP of the situation.

As the poster above states, if you are receiving any means tested benefits they will also be affected.

Pete

Edit:

Hi again,

I have just checked with CPAG online which states:

''However, it does not include lump-sum or redundancy payments which are not related to a speci?c period, even if you have chosen to receive a lump sum instead of a periodical payment (although if you choose to receive payments in instalments, even if you do not have to, they will count).''

So it appears you are okay but I would inform the DWP (in writing) just to cover yourself.

Pete

Thank you to the two responders. Just to be on the side of caution I have written to the DWP and notified them of my new situation.
Thank you to all who read but did not post. It is wonderful to know that people are looking and might reply, and that someone out there is listening/reading to us, those with what appear to be insurmountable problems at the time.
Thanking you
Keith