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Savings Limit for ESA

RSISolutionsRSISolutions Posts: 47Member Listener
edited October 12 in Ask a benefits advisor
I am currently on ESA. I don't pay any council tax as I live alone and don't have much savings..

What is the savings limit you are allowed before it affects :-

1. Your council tax reduction?
2. The DWP's contribution towards your mortgage interest payments?

I live in Scotland.  


  • Sam_ScopeSam_Scope Posts: 3,714Administrator Scope community team
    This is from the government website:

    Your income may affect your income-related or contribution-based 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.

  • RSISolutionsRSISolutions Posts: 47Member Listener
    Hello. Sorry this doesn't answer my question. I am already in receipt of Income related ESA. What is the threshold limit for savings in relation to 1. Council Tax Reduction 2. Help with Morgage interest payments from the DWP?
    thank you
  • steve51steve51 Posts: 1,993Member, Community champion Chatterbox
    Hi @RSISolutions

    We have got some benefit advisors who will be able to assist you with your current questions.

    I will pass your post onto them for there advice if that is ok ???

    Hi @BenefitsTrainingCo

    Sorry but can you please offer me some help and advice with this post ??

    Many thanks.
  • CockneyRebelCockneyRebel Posts: 1,718Member, Community champion Chatterbox
    If you are in receipt of ESA (IR) then you may get help with CT and MI. So the upper limit of savings will be £16000 in line with IR benefit

    Be all you can be, make  every day count. Namaste
  • thespicemanthespiceman Posts: 198Member Chatterbox
    Hello thank you to every one who has a made a comment on savings.  Thank you SCOPE.  I did not know this.  I get ESA and in the future probably need to put some thing away.  This is what I like about this forum useful info to file away.
  • BenefitsTrainingCoBenefitsTrainingCo Posts: 1,633Member, Community advisor Chatterbox
    Hi there RSISolutions - just to add to the above: The capital limit for income related ESA is £16,000, and for every £250 you have above £6000, you will be treated as having £1 of income, which will be deducted from your ESA accordingly. As long as you retain some income related ESA, then you may well be entitled to the maximum help available for council tax reduction from your particular local authority BUT you must check your local authority's individual scheme. In England, for instance, some local authorities will not give any council tax reduction if your capital is more than £6,000. There is a link here to Citizens Advice Scotland which may be helpful:

    The Benefits Training Co:
    Will Hadwen
    Lee Kempson
    Jayne Knights
    Mary Shone
    Maria Solomon
    David Stickland

  • RSISolutionsRSISolutions Posts: 47Member Listener
    edited October 12
  • RSISolutionsRSISolutions Posts: 47Member Listener
    edited October 12
    Hi @BenefitsTrainingCo if an employee is about to enter into a COT3 agreement and will receive some payment that will affect their benefit, do they have to show this COT3 paperwork to the DWP or will the DWP accept their declaration of the amount they have received without seeing the COT3 paperwork?
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