Is the new ESA means tested

I am currently on the Incapacity Benefit and have received a letter to say i will be changed to the Employment and Support Allowance. I have read that this may be means tested. Is this only in cases where you have not paid enough National Insurance contributions, or is it for all claimants. What is the cut off point for savings if it is means tested

thank you that is a big help

There is a lower and upper capital limit.
You cannot get income related ESA if your capital is above the upper limit of £16000.
If your capital is below the lower limit £6000 your ESA is not affected.
Any amount between those levels is treated as possible income at the rate of £1 for every £250 above the lower rate of £6000.

vicky wrote:

I am currently on the Incapacity Benefit and have received a letter to say i will be changed to the Employment and Support Allowance. I have read that this may be means tested. Is this only in cases where you have not paid enough National Insurance contributions, or is it for all claimants. What is the cut off point for savings if it is means tested

Vicky,

One more thing that I could add to Gordon and towser's sound info, is that if the new legislation is passed, the new rules will not come into force in April 2012.

However the 52 week entitlement to Con/ESA will be retrospective, i.e. any time spent in receipt of Con/ESA before April 2012 will be taken off the 52 week entitlement, e.g. someone who was awarded Con/ESA in Oct 2011, would only have around 6 months entitlement left when the legislation comes into force, before they were put on the means tested Income Related ESA.

bro58 wrote:

vicky wrote:

I am currently on the Incapacity Benefit and have received a letter to say i will be changed to the Employment and Support Allowance. I have read that this may be means tested. Is this only in cases where you have not paid enough National Insurance contributions, or is it for all claimants. What is the cut off point for savings if it is means tested

Vicky,

One more thing that I could add to Gordon and towser's sound info, is that if the new legislation is passed, the new rules will not come into force in April 2012.

However the 52 week entitlement to Con/ESA will be retrospective, i.e. any time spent in receipt of Con/ESA before April 2012 will be taken off the 52 week entitlement, e.g. someone who was awarded Con/ESA in Oct 2011, would only have around 6 months entitlement left when the legislation comes into force, before they were put on the means tested Income Related ESA.

Quick typo correction, should read "rules will not come into force UNTIL April 2012"