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ESA CB Support group - occupational pension

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4 months 2 weeks ago #293192 by Claire
Hi
I have been awarded a small occupational pension early on medical grounds and need advice to know how the different options I can make will affect my contribution based support group ESA.
• The annual pension amount is £4,543.45 (£87.37 pw) or
• 25% lump sum of £26,863.09 minus tax £1,243.74 = £25,619.35 lump sum and deferred pension in payment of £3,407.59 pa (£65.63 pw) or
• max tax free lump sum £23,628.95 and annual pension of £3,544.34 (£68.16 pw)

I’m very worried about making a mistake which will affect my benefits. I would ideally like to take the largest amount of lump sum if I can to reduce mortgage costs.

Please can you advise on the three options and how they will affect my ESA CB SG (awarded since 2017)

Also do I need to notify the DWP? If so when , how and is this likely to trigger a reassessment as dealing with DWP causes me a lot of mental distress

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4 months 2 weeks ago #293234 by Gary
Hi Claire

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

We cannot give you any financial advice, but we can explain how pensions affect CB/NS ESA.

New Style ESAand CB ESA are both Contribution Based benefit and is not means tested with the exception of pension income which can reduce the amount that you receive.

If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.

If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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