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Thread: Esa - disregarded capital after house sale query.

  1. #1
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    Esa - disregarded capital after house sale query.

    Hello

    I think my query may ruffle some feathers, but please bear with me...

    When I sell my home, I understand that DWP will disregard the house sale money for up to 6 months, whilst I find somewhere I can afford.
    I'll likely have to rent first, because I've got to find somewhere very cheap close to family, Buying a 2 bed from an auction is a possibility, or a park home.

    My question is this..
    Will I be able to receive my normal disability benefit payments, and claim housing benefit for rent over those 6 months of capital disregard? I know that sounds bad, but I'll need every penny to buy somewhere, and then I'll need no HB at all.

    Maybe DWP keep the claim open, but don't issue benefit payments?
    I don't know how this works, but I'm worrying over trying to plan my future. I have MH problems as well as physical disabilities, and I'm getting into an emotional state over the not knowing.

    Thanks
    Last edited by Tara; 15-11-20 at 14:33.

  2. #2
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    You’re correct about the 6 month capital disregard if you’re after some reassurance on that, see H2119 on this page - https://assets.publishing.service.go...mh2.pdf#page21 . If you read the following H2120 section you’ll also find examples of when the 6 months may be extended. The money from the house sale wouldn’t be classed as income so it can’t end your claim that way either.

    Your ESA should continue as usual for the 6 months after the sale, and longer than that if you’ve found a place to buy and have less than £16k remaining. You should also be able to claim HB for rent in the meantime, though unless you’re receiving a Severe Disability Premium with your ESA you’ll have to claim Universal Credit instead once you start renting, this will replace the ESA and you won’t be able to go back - but the same rules regarding capital disregards apply on UC so you won’t be stopped from opening a claim and it won’t be reduced.

    I would say just to ensure things go smoothly make sure you’re very clear and timely when informing the DWP/Council (if claiming HB) of your house sale and that you intend to buy a new place with the money that you intend to occupy as your home, and when you’ve bought the place. Keep records of your communications with them too, just in case.

  3. #3
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    Quote Originally Posted by Saxmoof View Post
    You’re correct about the 6 month capital disregard if you’re after some reassurance on that, see H2119 on this page - https://assets.publishing.service.go...mh2.pdf#page21 . If you read the following H2120 section you’ll also find examples of when the 6 months may be extended. The money from the house sale wouldn’t be classed as income so it can’t end your claim that way either.

    Your ESA should continue as usual for the 6 months after the sale, and longer than that if you’ve found a place to buy and have less than £16k remaining. You should also be able to claim HB for rent in the meantime, though unless you’re receiving a Severe Disability Premium with your ESA you’ll have to claim Universal Credit instead once you start renting, this will replace the ESA and you won’t be able to go back - but the same rules regarding capital disregards apply on UC so you won’t be stopped from opening a claim and it won’t be reduced.

    I would say just to ensure things go smoothly make sure you’re very clear and timely when informing the DWP/Council (if claiming HB) of your house sale and that you intend to buy a new place with the money that you intend to occupy as your home, and when you’ve bought the place. Keep records of your communications with them too, just in case.


    Thank you so much for your reply.

    I do receive Severe Disability Premium with my ESA, and moving to Universal Credit is a worry, as I've heard most claimants end up worse off ????

    Thanks again

  4. #4
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    Almost all claimants actually end up better off when migrating from legacy benefits to UC now.
    Most would have now been the same to within a penny a week, but the UC increase for Covid has made UC pay about £20 a week more.

    Previously with ESA it was claimants with SDP who could end up worse off on UC.
    But that anomaly was closed and if you have SDP you can't (currently) claim UC - the law does not allow it.

    2 years ago we used to advise people to avoid moving to UC if they could, now we nearly always advise the opposite because things have changed in the last couple of years.
    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.

  5. #5
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    Quote Originally Posted by nukecad View Post
    Almost all claimants actually end up better off when migrating from legacy benefits to UC now.
    Most would have now been the same to within a penny a week, but the UC increase for Covid has made UC pay about £20 a week more.

    Previously with ESA it was claimants with SDP who could end up worse off on UC.
    But that anomaly was closed and if you have SDP you can't (currently) claim UC - the law does not allow it.

    2 years ago we used to advise people to avoid moving to UC if they could, now we nearly always advise the opposite because things have changed in the last couple of years.
    Thank you for the advice

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