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ESA and personal pension
- NidusIan
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10 years 4 months ago #128091 by NidusIan
ESA and personal pension was created by NidusIan
Hi
My husband has had MS since about 1994/5 and had to give up work in 1996 due to his illness.
He has claimed his benefits due to him ie: firstly incapacity benefit, DLA and latterly Employment Support Allowance ( which replaced Incapacity Benefit) He gets contributions based ESA and is in the support group. We had to go to tribunal last year because he was put into the work related activity group. This was overturned in our favour to put him into the support group, we were also supported at the tribunal by Welfare Rights representative which we were VERY thankful for.
When he had to give up work his company pension was effectively frozen until he would reach his pensionable age, which is 60 in this case.
He received a letter in December explaining that he could start to receive his pension now if he so wished.
Can you tell me whether I need to inform DWP that he will be getting pension payments starting in February, and whether this will effect his benefit payments. The amount will be less than his ESA per week payments and he has chosen a lump sum which is greater than £16,000 which is the limit of savings the DWP says is allowed.
I look forward to hearing from you. MM.
My husband has had MS since about 1994/5 and had to give up work in 1996 due to his illness.
He has claimed his benefits due to him ie: firstly incapacity benefit, DLA and latterly Employment Support Allowance ( which replaced Incapacity Benefit) He gets contributions based ESA and is in the support group. We had to go to tribunal last year because he was put into the work related activity group. This was overturned in our favour to put him into the support group, we were also supported at the tribunal by Welfare Rights representative which we were VERY thankful for.
When he had to give up work his company pension was effectively frozen until he would reach his pensionable age, which is 60 in this case.
He received a letter in December explaining that he could start to receive his pension now if he so wished.
Can you tell me whether I need to inform DWP that he will be getting pension payments starting in February, and whether this will effect his benefit payments. The amount will be less than his ESA per week payments and he has chosen a lump sum which is greater than £16,000 which is the limit of savings the DWP says is allowed.
I look forward to hearing from you. MM.
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- Gordon
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10 years 4 months ago #128106 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA and personal pension
NidusIan
We cannot give detailed financial advice on the forum so I am going to recommend that you see a qualified advisor before going ahead with this change so the you are fully informed. Do an internet search for "welfare advice" with your postcode, town or county.
If are receiving ESA(CB) solely then it will not be affected by any savings that you have, but will be reduced if the weekly pension income is more than £85.
If you receive ESA(IR) in part or in whole then it will be reduced £ for £ by any pension income, also, although the savings limit for ESA(IR) is £16,000 this amount includes all household savings, assets and cash so I think it likely that that the DWP will investigate your finances if the lump sum is actually £16,000 on the basis that this will take you over the limit.
Receiving these payments would be a Change of Circumstances that must be reported to the DWP when it occurs.
Gordon
We cannot give detailed financial advice on the forum so I am going to recommend that you see a qualified advisor before going ahead with this change so the you are fully informed. Do an internet search for "welfare advice" with your postcode, town or county.
If are receiving ESA(CB) solely then it will not be affected by any savings that you have, but will be reduced if the weekly pension income is more than £85.
If you receive ESA(IR) in part or in whole then it will be reduced £ for £ by any pension income, also, although the savings limit for ESA(IR) is £16,000 this amount includes all household savings, assets and cash so I think it likely that that the DWP will investigate your finances if the lump sum is actually £16,000 on the basis that this will take you over the limit.
Receiving these payments would be a Change of Circumstances that must be reported to the DWP when it occurs.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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