Navigating the UK’s benefits system can be complex—especially when it comes to understanding how your financial assets affect what you’re entitled to. If you’re receiving or planning to claim Employment and Support Allowance (ESA) as part of the Support Group, one of the most important questions to ask is: How much savings can I have on ESA support group? This guide breaks down the savings rules, explains how they interact with income-related ESA, and clarifies what other benefits like PIP mean for your eligibility and payments. Whether you’re saving for the future or have recently come into a lump sum, this article provides the answers you need.
What is ESA Support Group and How Does It Work in the UK?
Employment and Support Allowance (ESA) is a UK government benefit for people who are unable to work due to illness or disability. It has two types: New-style ESA and Income-related ESA. This blog focuses on the ESA Support Group for those on income-related ESA, where eligibility and payments can be affected by savings.
The ESA Support Group is for claimants whose health conditions make it unreasonable to expect them to work. It provides additional financial support and exempts individuals from job-seeking requirements.
How do savings affect income-related ESA in the Support Group?
Savings significantly impact eligibility and payment amounts for income-related ESA. The rules are:
- Savings up to £6,000: Your ESA payments won’t be affected.
- Savings between £6,000 and £16,000: For every £250 over £6,000, your ESA benefit decreases by £1 per week.
- Savings over £16,000: You are not eligible for income-related ESA if your savings exceed £16,000.
These thresholds apply to both personal and joint savings if you live with a partner.
How is the reduction in ESA calculated for savings between £6,000 and £16,000?
To determine your payment reduction:
- Subtract £6,000 from your total savings.
- Divide the result by £250.
- Multiply by £1 per week.
Example:
If you have £8,000 in savings:
- £8,000 – £6,000 = £2,000
- £2,000 / £250 = 8
- Your ESA reduces by £8 per week.
Are All Types of Savings Counted For ESA Support Group?
Yes. The DWP includes:
- Cash
- Money in current or savings accounts
- ISAs
- Stocks and shares
- Property (excluding your primary residence)
Not included:
- Your primary residence
- Personal possessions
- Life insurance policies (unless cashed in)
What if I receive other benefits with ESA?
If you receive other means-tested benefits like Housing Benefit or Council Tax Reduction, savings rules apply across all benefits. A change in savings could affect multiple entitlements.
- These benefits are assessed using the same capital thresholds as ESA.
- Over £16,000 in combined savings can result in disqualification from several means-tested benefits.
Can My Partner’s Savings Affect My ESA Support Group Claim?
Yes. If you live with a partner, their savings count towards the total. For example, your £5,000 and your partner’s £5,000 equals £10,000 in total savings, which would reduce your ESA by £16 per week.
- Both partners’ bank accounts are assessed together as one.
- Income from jointly held assets also contributes to the overall financial assessment.
What if my partner is not claiming ESA?
- Even if only you claim ESA, your partner’s savings still count.
- ESA is a household-based means-tested benefit.
- All income and capital in the household are assessed.
- This covers your partner’s earnings, pensions, and savings.
- Not declaring this may lead to overpayments or sanctions
What support is available if I’m over the savings limit for ESA?
If you exceed £16,000 in savings:
- You cannot claim income-related ESA.
- Consider claiming new-style ESA (if eligible based on NI contributions).
- If you satisfy the requirements and are under State Pension age, consider Universal Credit.
“Understanding how savings affect your ESA eligibility is crucial to avoid unexpected loss of income,” says Helen Undy, Chief Executive of the Money and Mental Health Policy Institute. “Seek advice early if you’re close to the savings threshold.”
Table: Savings Impact on Income-related ESA Support Group
| Savings Amount | Impact on ESA Payment |
| £6,000 or less | No impact |
| £6,001 – £16,000 | £1/week deduction per £250 saved |
| Over £16,000 | Not eligible for ESA |
ESA Support Group and PIP: Can You Get Both?
Yes, you can receive both ESA Support Group and Personal Independence Payment (PIP) if you meet the eligibility criteria for each. They are assessed independently.
- ESA supports your ability to work.
- PIP helps with daily living or mobility needs.
- Getting PIP does not reduce your ESA amount.
- PIP is not impacted by savings and is not means-tested.
- Having both can increase your total benefit income.
ESA Support Group Disability Premium: What is it?
You can be eligible for additional premiums if you are enrolled in the ESA Support Group and have income-related ESA:
- Disability Premium: Added if you’re also eligible for income support or legacy benefits.
- Severe Disability Premium: Given if you receive PIP and live alone.
- Enhanced Disability Premium: If you are a member of the ESA Support Group, you are included.
- These premiums boost your weekly income.
- They do not apply to new Universal Credit claims.
Can your ESA benefits stop if you have a lot of money in your bank account?
Yes, your ESA benefits can stop if your savings exceed the allowed limits:
- Income-related ESA ends if your account balance reaches £16,000 or more.
- Large lump sum payments (e.g., inheritance or insurance) must be reported.
- Even temporary savings spikes can result in benefit suspension.
- DWP may investigate if they suspect “deprivation of capital.”
- Failure to report can result in overpayment recovery or penalties.
Is ESA support group means tested?
It depends on the type of ESA:
- New-style ESA: Not means-tested. Based on National Insurance contributions.
- Income-related ESA: Yes, fully means-tested.
- Savings and income from a partner can affect eligibility.
- Assessed income includes pensions over £85/week.
- Means testing applies to the total household income.
How Much Savings Can I Have on Disability Benefits?
Different benefits have different savings rules:
- ESA (income-related): Limit of £16,000.
- PIP: Not affected by savings.
- Universal Credit: Savings over £16,000 disqualify you.
- Housing Benefit: Similar rules to ESA.
- Savings under £6,000: No impact on means-tested benefits.
What is the maximum savings allowed on ESA?
- For income-related ESA, the savings cap is £16,000.
- Savings of up to £6,000: No effect on payments.
- Between £6,000 and £16,000: Payment is reduced by £1 per £250 saved.
- Over £16,000: You become ineligible.
- Applies to individual or joint savings if you live with a partner.
What happens if I am put in the support group for ESA?
Being placed in the ESA Support Group brings additional support:
- You are not required to work or seek employment.
- You receive an extra Support Component payment weekly.
- You may qualify for Enhanced Disability Premium.
- If your income qualifies, you can continue to claim ESA indefinitely.
- You can also get PIP and Housing Benefit if applicable.
Conclusion: How much savings can I have on ESA Support Group?
If you’re on income-related ESA in the Support Group, savings up to £6,000 have no effect. Between £6,000 and £16,000, your benefit reduces incrementally. Above £16,000, you’re no longer eligible. By being aware of these guidelines, you may make wise financial decisions and maintain compliance.
Always seek advice if you’re nearing a threshold. Benefits specialists and local advice services can guide you based on your exact situation.
Disclaimer: This content is accurate as of July 2025 and applies to UK residents only. Always consult the official gov.uk site or a benefits advisor for up-to-date personal guidance.
FAQs
1. Can I still receive ESA if I have £17,000 in savings?
No. You are not eligible for income-related ESA if your or your household’s savings exceed £16,000.
2. Does the value of my home count towards my ESA savings limit?
No, the ESA savings computation does not take into account the value of your primary house.
3. Can I give away savings to qualify for ESA?
No. Deliberately reducing your savings to qualify is called “deprivation of capital,” and the DWP may treat you as if you still had the money.
4. Will savings in my child’s name affect my ESA?
Generally, no. However, if the savings are accessible to you or seen as yours, they could be considered.
5. What if my savings temporarily increase due to a lump sum?
You must report all changes. The DWP will reassess your eligibility, and overpayments may be reclaimed if not declared promptly.
