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Thread: What will happen to my benefits if I move out of my home?

  1. #1
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    What will happen to my benefits if I move out of my home?

    I receive income-based Employment and Support Allowance & the higher rate of care for PIP.
    I own my house without a mortgage but have no other assets or savings.

    I am now having to confront the prospect of my relationship breaking up and if that is the case I don’t feel mentally or physically able to live by myself and would reluctantly move in with my parents.

    I would then have to decide to either sell my home that before my accident I had paid for with years of hard work or rent it out with the associated risks and relying on family and friends to act as the effective landlord.

    But I also realised that this would probably cost me my ESA?

    Am I right in saying that my house would if I am not living there be counted as capital, therefore, meaning I would effectively have savings of over £16,000?

  2. #2
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    Quote Originally Posted by Notsuremaybe View Post
    I receive income-based Employment and Support Allowance & the higher rate of care for PIP.
    I own my house without a mortgage but have no other assets or savings.

    I am now having to confront the prospect of my relationship breaking up and if that is the case I don’t feel mentally or physically able to live by myself and would reluctantly move in with my parents.

    I would then have to decide to either sell my home that before my accident I had paid for with years of hard work or rent it out with the associated risks and relying on family and friends to act as the effective landlord.

    But I also realised that this would probably cost me my ESA?

    Am I right in saying that my house would if I am not living there be counted as capital, therefore, meaning I would effectively have savings of over £16,000?
    Yes, both options - selling your house and letting out your house would see you losing your income based ESA. however, do check whether you are on contribution based ESA with an income based 'top up' as capital would not affect any contribution based ESA. Your PIP would not be affected.

    Have you thought of other options? Selling up and moving nearer your parents? Why do you think that you can no longer continue living in your present home? Not being nosy, just wondering if your answer might bring forth further suggestions.

  3. #3
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    I simply couldn't afford to buy a house near my parents. My house is worth around 150k and houses in their area are about 300k.

    My ESA used to be contribution based but is now definitely income based.

    I have mobility issues which means that I'd be unable to go out without help. Also, I suffer from poor mental health and too be honest I'd feel very lonely living herea alone.

  4. #4
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    Just another suggestion, couldn't you sell up and extend somewhere at your parents maybe?

  5. #5
    Senior Member nukecad's Avatar
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    Unfortunately if you are not living there then the property would no longer be your main residence and so would be counted as capital.

    Another option springs to mind though.

    Would it be possible to stay in your home and take in a lodger?

    Although this would mean you have an income from the lodgers rent I believe that under the 'rent a room' scheme some or all of this may be disregarded for benefits.
    (I'm not 100% on that, I need to look it up when I get home).

    I think Lightouch rents a room to a lodger and found that it works for him, although his ESA is credits only.

    It may be worth looking at, and maybe LT will be along later to give his experience.
    I'm intelligent enough to know that I don't know everything.
    But I'm good at searching for, and finding, stuff.

  6. #6
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    That's a very intriguing suggestion thank you!

    If I was to lose the cash component of my ESA if I was to go to my parent's or even if I had too much income from the lodger would I still be able to get national insurance contributions? Is that what people mean by the credit component of ESA?

  7. #7
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    My ESA used to be contribution based but is now definitely income based.
    You need to carefully check this aspect of the matter, because:

    If your claim began as a Contribution Based award and has remained unbroken, regardless of changing further down the line to Income Related for any reason, you will have retained a Right/Entitlement to return to that (CB) status.
    Last edited by Jard; 06-18-2017 at 02:24 PM.

  8. #8
    Senior Member nukecad's Avatar
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    That depends on being in Support Group.

    If your claim starts as CB then it can be changed to Income Related if you are WRAG, or later moved to WRAG.

    But at anytime you are in SG, or moved back to SG then it becomes contribution based again.

    It all depends on what it was when first awarded.
    I'm intelligent enough to know that I don't know everything.
    But I'm good at searching for, and finding, stuff.

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