ESA Home Ownership

[Rockhopper81]

Hi all, hoping someone might have an answer or at least some reassurance I guess?

I owned (mortgaged) a property when I was well enough to work - I moved for work and rented it out whilst I did, but had to move back 'home' with my parents for quite serious mental health reasons (as well as my disability). I didn't sell that property straight away as we were still hopeful I could move back into it in the reasonably near future, so when I started claiming ESA I had another property that I did not live in. This rightly counted towards my assets and I was told to inform them if I ever sold it.

I am in the support group for ESA and receive the contribution-based rate. I have always been in this group.

I sold my property last summer and informed the DWP. The 'profit' from the house was used to a) clear debts I had; and b) the vast majority of the remainder was given to my parents so that, combined with the sale of their property, we could buy a house more suitable for 3 adults to live in (we determined it wouldn't be a good idea for me to live alone, so buying a larger property together was the best way forward). We did this and moved a couple of weeks before lockdown.

Three weeks ago I had a letter requesting bank statements for the past 16 months (which I sent, at the total of about 100 pieces of paper with other documents they wanted) and now I had had another letter asking why I transferred the sum of money to my parents. I assume me declaring I had sold 'my' house triggered this.

My intention is to tell the truth - that it was to facilitate the purchase of a house that would accommodate 3 adults more appropriately.

Will this effect my ESA at all? I can still be on the 'deeds' of a property, right? There's nothing suspect - I'm not trying to hide money in any way, it was just simpler to have it all come out of one 'pot' - but I'm a bit concerned that they will stop my payments or something similar. I don't have over £6k savings (the threshold for income-related ESA), but since my ESA is contribution-based, will that be okay?

I'd appreciate anything that could put my mind at rest! Thanks in advance.

Are you absolutely sure it is contributions based ESA ? and that you weren't also getting an income related top up ?

Assuming you don't get a private pension, then no savings/income of you (or any partner if you had one) would be relevant for contributions based ESA.

I'm 100% certain it's just contribution-based ESA - because of the other property, I had too much in assets to receive any income-related top-up.

I'm assuming it's just come about because I informed them of selling the other property?

Contribution esa is n’t interested in savings or other income. You need to meet the criteria for contribution esa which is to have paid national insurance contributions in the two years before you claim and then to have medical evidence to support your claim. Are you sure you are on contribution esa? Contribution esa doesn’t ask to see bank statements and would not be interested in the transaction you describe above.

Are you on an other benefit?

Absolutely positive it's contribution-based ESA (I'd paid NI for years before having to claim). I had to provide 'doctor's notes' until my assessment, but was then exempt from that as I was placed in the support group.

I receive PiP due to my disability, but that's not means tested.

I can only assume they're asking questions because I informed them I'd sold my 'asset' - I just thought it was odd as I know contribution-based ESA isn't based on savings or assets. It's the only thing I can think of...

Thanks, why were you informing them about the sale of your house in the first place? That information is totally irrelevant to contribution esa, it just is n’t asked for.

When I first applied, they told me I would only be eligible for contribution-based ESA due to the house, but to inform them when it was sold. So I did! No idea why they asked me to inform them, but I just followed the instructions they gave me.

That’s much clearer now. The house has nothing to do with the contribution esa. Stop worrying about it, it’s all fine. I think what you are saying is that when you first applied, you didn’t know what you were applying for and because of the house you were only entitled to contribution esa. Now that the house has been dealt with you might be entitled to something else. That’s why they want to know. It sounds like they are trying to help you. They aren’t trying to stop your contribution esa, it’s fine. They are trying to see if you are entitled to anything else. Keep telling the truth as you say you are doing and cooperate with them, they are trying to help, you might get another benefit now. I’m sorry I can’t tell you which or how much or even if you will do but they are trying to help you rather than stop paying your contribution esa.

Thank you @WindowSill - I shall try not to worry about it. It hasn't occurred to me they it might be better to try and benefit me! I guess time will tell - I've always been honest about everything, so no need to change now.

Thanks again.