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ESA Saving Limit

Hello,

As we all know the ESA saving limit is £16000.

My question is this. What amount of savings are you allowed before it affects your ESA benefit?

I have been told that you can have saving upto £6000 before you have to tell the DWP.

I am i correct?

Any help would be appreciated.

Thank you XXX

As i understand it ( when on income related esa it is £6000 ) then between £6000 and £16000 payments reduce by £1 for every £250 savings , plus if you draw on a pension as i do ( only a very small one ) your pension income is also taken off your esa amount

Do these rules apply if you already get ESA?

Income related ESA, savings above 16k are taken into account but you don’t pay tax on the benefit.
Contribution based ESA, savings are not taken into account but you do pay tax on the benefit.

Check with your local jobcentre plus/benefits advice about whether the rules apply.

I know the rules before you apply for ESA, But what are the rules if you already get it? I already get Income related ESA, in a support group. As an earlier post wrote above about the rules before you apply for ESA. Do the same rules apply if you already get ESA? Thank you all

Yes the rules do apply as soon as you reach the £6000 you have to inform the dwp if you have not and they catch you then you can be had up for fraud at worst. You will also have to pay back all the overpayment that you have received and quite rightly so. Your best bet is to own up and say you had no idea and ask how to go about paying it back. This way you will probably avoid a criminal record.