ESA income related and DLA how will pension effec

dylan1 wrote: Can you help? on income related esa and dla, am to get civil service pension of £1,355 per annum, lump sum of £4,098. on my 60th birthday this year. Have asked civil service, and do not have to have pension, but would have to pay tax. How would benefit agency see this, would I be penalised ? Could I get breakdown/calculation of this somewhere ?
I also have shared ownership house, part housing benefit rent, and mortgage, also paid by benefits.
I have multiple chemical sensitivity, and ME, so cannot access welfare rights office due to my condition, so would be very grateful for online help.

We cannot give definitive financial advice on the forum due to the impossibility of knowing all of the facts of the case, so you really need to get face to face advice despite your difficulties, it may be the a Welfare Advisor can visit you at home, do an internet search for "welfare advice" with your postcode, town or county.

If you take the pension, then I would expect it to be deducted £ for £ from your ESA(IR), it may be possible to defer it but it will depend on the terms and conditions on the contract, the DWP will assume that a pension that has reached it's normal payment date is in payment and may well deduct the money anyway. Any effect of the cash payment will depend on whether it takes your savings and assets over the £6000 lower limit, again the DWP can assume that it has been paid even if it has not.

As you can see this is complicated and to a considerable extent dependant on the wording of the pension contract, which is why you need face to face advice.

Gordon