Paying off mortgage - effect on ESA (IR)
I’ve just taken a call from a client - she is on ESA (IR) and has a mortgage but no housing costs or SMI loan. Her father is coming over from USA and there is a possibility that he will want to pay off her mortgage. He is not planning on giving her the money to then pay the mortgage company and he could well do this without her knowledge. I’ve checked the ESA Regs and cannot see how her benefit would be effected but of course the DWP could always state that she is depriving herself yet the payment would be a one off gift and would not necessarily involve her.
Mortgage is a debt so paying it off doesn’t count as deprivation, even if payment is not due until later. Only difficulty would be if she cannot prove that she owed the debt but it should be easy enough if she’s got paperwork.
She can’t deprive herself of capital which isn’t hers. If her dad pays off the mortgage for her, then deprivation doesn’t even come into it. It was never her money, she never had any right to it or control over how it was spent.
Thank you - just wanted to check that I wasn’t missing something!