Savings affecting esa: My first post so... - Fibromyalgia Acti...

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Savings affecting esa

San67 profile image

My first post so I hope it goes ok, I was an aux nurse & social care worker for 12 years, 2 years ago I was in pain, Went to docs who referred me for an mri, It showed up slipped discs in my neck, I then also had another one and was diagnosed with disc disease in my lower back, In that 2 years I was diagnosed with diabetes and fibromyalgi, Although the doc said it’s an invisible disease she said I more or likely have this as well as ibs, I’m doing good though still bubbly, Anyway I have today received a pension from my work and I didn’t know what to do, As I’m on esa I didn’t know if I had to declare, So I called up and he asked if I was on any other benefits, I said pip but was awaiting to see if I was successful in getting more as I had re applied, He said it’s going up, I’m entitled to the standard care rate and the enhances rate. I don’t know how much this is, I have to wait on the letter I guess,He said I need to write to them as it’s a change of circumstances because I’m getting money, I have credit cards to pay off 8k in total over the 2 years I was off work I spent. Wrong I know but they will be re paid, After I’ve done all this I’m left with 15k. Will my esa stop? Thanks fo reading. I’ve not a clue regarding things like this.

25 Replies

PIP is not means tested so that will be fine.

You don't say if you are on ESA NI contribution or ESA means tested.

This may help a bit....

If you have savings over £16,000 you will not be able to claim means tested ESA. If you have savings between £6,000 and £15,999 your means tested ESA will reduce. Your savings will not affect your ESA if you are receiving ESA based on National Insurance Contributions.


San67 profile image
San67 in reply to Bananas5

Hello and thanks for replying, It’s contribution, I did go for an interview with them regarding it as I had been on it for months, However when I got there the guy said he couldn’t see me as he wasn’t qualified, Would need to be one of their doctors. This was months ago, When I called the esa today I mentioned this, Hopefully they will arrange another one.

San67 profile image
San67 in reply to San67

I’m also going to get a monthly pension of £290, So if I’m on contribution I will be fine?

San67 profile image
San67 in reply to Bananas5

The letter I have says, from 23rd Oct 2017 they will credit myself with national insurance contributions whilst claiming employment & support allowance

Sounds like you should be OK then.

But...always best to confirm everything in writing....keeping a copy. They have a habit of 'mislaying' things.

As you were told - this is probably classed as change in circumstances.


Thanks very much, Will let you know what happens. It’s appreciated x

Hi San, the Gov.Uk page about this states following:

Your income may affect your income-related or contributory ESA. Income can include:

•you and your partner’s income

•savings over £6,000

•pension income

You won’t qualify for income-related ESA if you have savings over £16,000.

As you have let them know about your circumstances then they should advise you of any changes. For future reference if you need any advice on benefits etc, you may find it helpful to contact Janet the FMAUK Benefits Advisor, the link below will take you to her contact details. I have also put link for the Gov.UK page that shows the above details for your information. Good luck and take care. x

I was hoping to actually give my kids Ajay,I’m going to declare this then see what happens. Probably won’t have none left by the time they write back lo,


Just be aware Contribution ESA does not entitle you to free Prescriptions many make this mistake and then end up with a large fine .

Also if you are in receipt of Housing or Council Tax Benefit it will effect this as well .

Their are laws on how much you can gift a year without being taxed cant remember amounts

Your pension income will be used to reduce your Contribution based ESA. Your savings do not matter for Contribution Based ESA but are taken into account for Income Based ESA. Even if they reduce your ESA to zero, it is still worth claiming because you get a National Insurance credit towards your State Pension and if you had to buy that with a Voluntary NI Contribution, it would cost over £700.

I’m getting a lump sum of 23k but of that 8k is going towards debt repayment so I will be left with 15k. I don’t think they will take my debt into consideration but I am going to gift my kids money. Thanks everyone. Will keep you posted on what happens.

M0AL61 profile image

My partner claimed Contribution ESA a few years ago, and for quite a time he wasn't entitled to anything because he had over the threshold of savings - this was definitely for Contribution based. It also affected his Housing Benefit, and he only got a couple of pounds of help. Be careful if you gift money, and if you spend any of it you MUST keep all receipts, as they will ask you what you spent it on. x

San67 profile image
San67 in reply to M0AL61

ThanksnMOAL61 well my first priority is paying my credit cards and then I will gift to my daughters. I will keep all receipts thanks x

Rainy54 profile image
Rainy54 in reply to San67

I know its a completely different concept but my young niece had her benefits stopped because she recieved an insurance payout of 12k after she lost her husband to cancer, eventhough she was gifting the money (placing in savings) to their three children aged 5, 3 and 1.

San67 profile image
San67 in reply to Rainy54

What benefits was she on Rainy? How long did they stop them for? That’s terrible they did that to a young lady, I hope mines ain’t stopped. I’ve basically nothing left now.

Hi, if you are on contibution based ESA your lump sum won't affect what you receive. if you are going to receive a monthly pension as well as your lump sum then this does affect your contribituon based ESA. I think it's anything over £85 per week pension will reduce your ESA. If you are only receiving £290 per month then your ESA won't be effected.

Thanks Ajay that’s most helpful

Fantastic thanks, I’ve worked since I was 16 always had 2 jobs and now I have all these ailments I’m fighting to get what I’m entitled to. Getting this lump sum worried me a lot to the point I didn’t eat yesterday due to the stress. I am going to do what I have to. Pay my debt. Gift my kids and then see what happens.i won’t have much left.

I was under the impression that as long as you have under 10k savings then all is ok.

I have just googled esa and savings and this is the first thing that comes up -

"Income-related ESA is a means-tested benefit. Your needs (and those of your partner, if you have one) are compared with the money you have, such as your income and savings. Income-relatedESA is worked out from this. ... You cannot get income-related ESA if your (and your partner's) capital or savingsare over £16,000."

So you should be fine hun. All the best with your health and the rest you have to deal with because of this x

San67 profile image
San67 in reply to Heather_14

Thanks Heather and hopefully they will take what I’m due to my debt into consideration. As I was off work 2 years I had to use my cards for things. Will update my post as I go x

Make sure you have copies of all the debt statements as you will need to show the funds coming in and where they have gone to bring them under the 16k threshold.

Giving money to family could be classed as fraud and stop all benefits so be careful.

PIP Income on the old system adds a disability premium to your ESA and with it an increase in savings.

Do you have any aids you need?

LadyJoro profile image
LadyJoro in reply to LadyJoro

Time to start shopping for a new bed

Thats a reasonable household expense, don’t forget the new duvet and pillows and bedding.

Any redecorating need doing?

Best get it all sorted now, put the money to good use

San67 profile image
San67 in reply to LadyJoro

My daughters partner is decorating for me but I ain’t letting him do it free, I have paid all my bills. Treated my kids so now I’ve hardly any left as the bills took a big chunk out it all. I’m happy enough though I’m now debt free. X

Yeah I have all the statements,I’ve also a divorce to pay for although my ex passed away suddenly after that, I’m still liable to pay, Yeah I won’t give them much and again will get statements from my kids that I gave,Like someone said I can gift 3k a year. I use a walking stick that’s it. I do need a new bed and sofa as both very uncomfortable for me to sit and lay on.;

Well I got my money and paid all debt off, I also booked a holiday to see friends in America, agod hope I manage. I also got a payment from the social but I’m confused, Before it came up on my bank statement dwp eesa, Now it’s saying dwp jsa, I’m wondering that when I called and said I had been to an appointment but they couldn’t see me as it has to be their doctor that they have now put me back to jsa, My money’s now spent, I’ve sent the letter to them, Also enclosed what I had to pay out.

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