ESA “IBR Leap” exercise issue - precluding client from having IR ESA put in payment?

ESA “IBR Leap” exercise issue - now precluding client from having IR ESA put into payment, is this right?

I’ve a client who’s been getting contributory ESA; in late 2018 they issued an ESA3 to see if they’d have been entitled to anything under “the IBR Leap exercise”.

As at the period in question they’d still had capital over £16k so not entitled to IR ESA at that time, as reflected when we returned the ESA3.

Capital has since dropped below the £16k so we wrote and asked them to put IR ESA into payment.

Reply we’ve received from them states the following:

“an ESA3 was issued to claim income based under the IBR Leap exercise.  This was returned and nilled as he had over £16,000 capital.  They are therefore unable to claim income related ESA”

Client is in accomodation which is exempted from UC, so is getting HB for housing costs.  Also getting enhanced rates of both PIP components.

Can anyone advise me on this please?
Many thanks

The two ESAs are essentially one and the same, your client is after an income related top up, not a new claim. The DWP has recognised this in their own guidance.

That said, unless your client comes under the SDP gateway (which would solve the above issues regardless), your client might be better off on UC.