ESA/IB agains savings

I have been in receipt of IB for some yars now due to severe arthritis and OH has just been 'terminated' from work after 30+ years on grounds of ill health (he is appealing medical retirement). He is taking his pension entitlement and so will have an income per week plus the 'dreaded' - even though should be lovely end to his working life - lump sum. We have debts naturally but as he is awaiting his ESA appeal early 2011 (which looks more favourable the more medical evidence that comes through), I am a little concerned that his lump sum that is left will mean he cannot get his ESA and that I may lose my IB. I cannot find anything concrete on this but perhaps someone can tell me when this rule comes in as its typical that after working without one day out of work for 40+ years, when he needs the system - he wont be able to get anything. His then 'lovely' lump sum which he has paid for all these years will be gone in no time on basic living with the family and so much for a nice retirement

Any help on the subject would be appreciated

I'm currently going through The Income Support (General) Regulations 1987 SCHEDULE 10 'Capital to be disregarded.'

If I come up with anything I'll let you know lol !


I could be a while

The rule is expected to 'come in' during the spring and it will time limit those on ESA due contribution based entitledments. They will get one years non means tested ESA and then it will be means tested if you want to continue.
Unless the nature and extent of the disability is within the rules for the 'support group' I note that 'Doris' is looking up 'disregards' but I very much doubt it will be disregarded in the 'means test' I will be interested to see what Doris comes up with, save to say that the actual rules for the ESA means test are not yet made. A lot of ESA claimants will be in this 'means test' situation, its very worrying and of course the liklihood is that the MPs will 'wave it all through' at any vote because god forbid the 'hard working taxpayer ' be expected to pay a benefit that the disabled claimant paid their NI contributions for

XFACTOR wrote:

I note that 'Doris' is looking up 'disregards' but I very much doubt it will be disregarded in the 'means test' I will be interested to see what Doris comes up with,

I don't know what I'm coming up with any more


I'm specifically looking for two pieces of law linked to Income Support claimants :

A: Where it states in black & white ( signed in the blood of a government minster ) the backpayments of DLA are disregarded for 52 weeks

B: IF it states that backdated carers premium is disregarded for 52 weeks.


As yet, I can find neither and there's a rather fierce DWP person banging on the metaphoric door claiming foul play.

Thanks Gordon. I appreciate detailed information cannot be given but thank you for the news that the ESA limit for contributions based comes in April 2011 also. I had already found out information on the deduction of pension from ESA and will try and find some more information on the income based rules.

Fore warned is for armed!