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Thread: Effect of savings on PIP and DLA

  1. #1
    New Member
    Join Date
    Oct 2017

    Effect of savings on PIP and DLA

    My sister in law is currently in receipt of disability living allowance and personal independence payments. She has lived in a 3 bedroomed house on her own since her father died some years ago leaving the house to her. The house is now too large and too expensive for her to run so she is looking at selling up and buying a smaller house. This would probably leave her with a cash sum of around £30,000 and she is concerned about losing benefits if she does this. I am confused as to whether either PIP or DLA takes account of savings and would appreciate any advice on how this possible move would affect her benefits now and in the future
    Many thanks

  2. #2
    Senior Member
    Join Date
    Feb 2017
    Hi and welcome
    PIP is a non means tested benefit which replaced DLA
    If your S.i.L is also claiming ESA then it will depend on whether it is contribution based or income related
    Anything expressed is my opinion only and is offered in good faith. It is either from my own experiance or what I have learned on my journey. Take it for what it is or leave it alone. With best wishes D.

  3. #3
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    West Cumbria (Lake District)
    Firstly she can't have both DLA and PIP at the same time, it's one or the other.

    The good news there is that whichever one it is (DLA or PIP) then it is not affected by any savings or income.

    If she is receiving any other benefits (eg, ESA) then they may be affected depending on if they are 'Income Related' or 'Contribution Based'.

    'Income Related' benefits will be affected, 'Contribution Based' benefits will not.

    If you can double check just what benefits she is currently receiving, and if any of them are 'Income Related', then we can tell you more.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  4. #4
    Senior Member Lighttouch's Avatar
    Join Date
    Mar 2011
    As you know DLA/PIP are none means tested and you can get it whether in or out of work.

    More interestingly your sister lives in a three bedroomed home and thinks she needs to downsize.

    I live in a three bedroomed bungalow but I make it work for me as I have a lodger.

    Most disabled people might need some sort of assistance around the home to do a few chores e.g. bringing shopping in, putting bins out, changing light bulbs, putting washing out etc but have to pay someone to do it.

    I get this done for free and my lodger pays £400 a month for the privilege. I don't even looseln my 25% single persons discount on the Council Tax as she is considered to be 'disregarded person' as she is on hand to help out.

    And as she would be helping someone out to get a roof over their head all income up to £7250 a year is tax free.

    With the extra monthly income she could pay for a fortnightly cleaner, gardener and outings etc. I want to see Slava's Snow show next week so my lodger is joining me as she gets in for free as my PA.

    Don't forget as soon as she has a large amount of savings she'll have to use her savings up on a ramp or a wet room in the future as she won't be eligible for any major adaptations e.g. through floor lift, wet room etc.

    Just an alternative to selling up and downsizing.

  5. #5
    Senior Member
    Join Date
    Mar 2014
    She will lose ESA. But on the other hand careful investment of the lump sum will enable her to live off it. Reccomend you get her to see a financial consultant - its an idea if like me, you really don't know too much about investment.

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