ESA & Car loan

A question about : ESA & Car loan

Asking for a friend, she will double check next week with the benefits helpline, but I told her I've always had great help from here.

She is on ESA. She's on Contributions based and is in the Support Group. She's also on DLA, but she knows that isn't affected by income/savings. Her husband works full time. He has just applied for a car loan from the bank, their last car was on finance and they finished paying it off last year. They've been saving the payments since then for a deposit and the bank is a much better interest rate than the car finance company. The car is essential for his job.

She just realised today though that with the bank the money will hit his account, rather than go direct from finance company to car place.

Will this impact her ESA? If it does they'll have to go down the car finance route which seems a shame as it'll cost them more in the long run and they've worked really hard to get back on their feet after her accident.

Best answers:

• Her contributions based ESA is not affected by capital, so no problem him getting the loan.