IS/HB + expected windfall/what happens to my claim?

[Henry_Lloyd]

Hi

 

I'll try and keep it short.

 

I'm currently in receipt of sickness (longterm) related Income Support and Housing Benefit. Anytime soon I'm expecting a lump-sum payment which will take me over the £16k savings criteria (I assume this is still the max limit) which means I'll no longer be entitled to receive these benefits.

 

My query is what actually happens to my current claim?

 

Fag packet maths say I'll be below the £16k in around 15 months time where I would be entitled to some benefits. I dont expect my health to improve during this time. Is it a case of starting afresh or will my existing claim be continued/re-opened?. It's something that scares the hell out of me and really wish I wasn't receiving this money.

 

Thanks.

[pocketstapler]

How much is lump sum?

[Henry_Lloyd]

Around £34k

[pocketstapler]

You may be able to keep your benefits if you have essential house repairs etc.........but seek advice regarding 'deprecation of capital' first from CAB or other advice agency.

[antone]

When your capital falls below the limit (which is £16k, as you note) you would need to make a fresh claim for Employment and Support Allowance, as IS is no longer available on grounds of incapacity and new claims are not accepted. Also, savings of £6k - £16k will result in a reduction of your weekly payment by £1 for each £250 in savings over £6k. That's what you would need to do assuming the rules are the same then as they are today.

 

However, a complicating factor is the upcoming introduction of Universal Credit, which will change everything. Does anyone know if we've heard any timescales for UC?

[Henry_Lloyd]

You may be able to keep your benefits if you have essential house repairs etc.........but seek advice regarding 'deprecation of capital' first from CAB or other advice agency.

 

I'm on HB so 'repairs' are down to the landlord.

 

I'm using pliers to work the cooker, walking on threadbare carpets and sleeping on loose springs. Even with a holiday I doubt I could satisfactorily spend over £18k.

 

Thanks for the tip though.

Edited June 19, 2012 by Henry_Lloyd

[Henry_Lloyd]

When your capital falls below the limit (which is £16k, as you note) you would need to make a fresh claim for Employment and Support Allowance, as IS is no longer available on grounds of incapacity and new claims are not accepted. Also, savings of £6k - £16k will result in a reduction of your weekly payment by £1 for each £250 in savings over £6k. That's what you would need to do assuming the rules are the same then as they are today.

 

However, a complicating factor is the upcoming introduction of Universal Credit, which will change everything. Does anyone know if we've heard any timescales for UC?

 

 

Thanks for that. So basically my claim is shut down completely.

 

Will this UC replace the current ESA [problem]?

[antone]

Thanks for that. So basically my claim is shut down completely.

 

Will this UC replace the current ESA [problem]?

 

The idea is that UC will replace JSA, ESA, and IS as well as HB/CTB and Working Tax Credits. But under current rules yes, your IS claim will be closed from the day you receive the money. Because you anticipate it will be ~15 months until your capital falls below the limit, no linking rule will apply so you would need to start afresh.

[Henry_Lloyd]

The idea is that UC will replace JSA, ESA, and IS as well as HB/CTB and Working Tax Credits. But under current rules yes, your IS claim will be closed from the day you receive the money. Because you anticipate it will be ~15 months until your capital falls below the limit, no linking rule will apply so you would need to start afresh.

 

Once again, thanks.