endowment policy and capital limits

My client was previously married with a mortgage to which an endowment policy was assigned. He got divorced and sold the house but kept on paying into the endowment policy which is due to mature in a few years time at which point he will almost certainly receive capital well over the limits. If he cashes it in early he will lose out considerably on its value, however, there is an early surrender value now which is over £6k. He says that he disclosed the policy during a compliance interview with DWP about 10 years ago and it wasn’t interested at that point (but proving that now might be difficult). The surrender value would also have been considerably lower at that time.

Does he need to disclose the potential capital he could get from the policy now before it matures?  He is in receipt of ESA.

If the policy includes an element of life insurance then it looks as if its surrender value should be ignored indefinitely. See the current CPAG WB Handbook, page 487 and DMG chapter 52, para 52406.

Brilliant, thanks James