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New Style Esa and Occupational Pension Deductions

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3 days 19 hours ago #305580 by soulgal
Hi,

I'm currently in receipt of Income Related & Contribution Based ESA, also DLA and I'm in the Support Group.

I have received my migration letter and understand that I will move to New Style ESA and UC and that my ESA will be deducted from my UC, correct?

I also receive a small Occupational Pension which is deducted from my current ESA. It is currently £375.00 per month. (£86.53 weekly)

I've just read this from a link that David posted in a reply to someone else.

"If you get an occupational pension or personal pension that pays more than £85 a wekk, your New Style ESA will be reduced by half of the amount over this limit".

Basic Allowance £92.05
Support Component £48.50

Sorry if I'm being thick, but can anyone explain to me what this means please? Half of the whole amount? Half of what?

How much ESA will I actually receive after my occupational pension has been deducted.?

Thanks in advance.

Soulgal

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3 days 9 hours ago #305585 by David
Hi soulgal

If you receive contribution-based ESA and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.

The excess is the difference between £85 and the actual pension income. For example, for a pension income of £100, the excess is £15. The amount of ESA payable is reduced by half of that, which is £7.50.

Hope that helps
David

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

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3 days 2 hours ago #305618 by soulgal
Hi David

Thanks for taking the time to explain that.

At the moment, the DWP deduct my occupational pension in FULL from my combined IR/Contribution Based ESA.

It looks like I will be receiving very little ESA and more UC when I migrate over shortly. I'm going to be a lot worse off financially once the transitional protection erodes as I currently receive SDP £82.90 and Disability Income Guarantee £21.20 as I transferred from Incapacity Benefit. That's part of the plan though I suppose.

Best Wishes

Soulgal

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3 days 2 hours ago #305619 by soulgal
Hi David

Apologies, I misread your reply. Does that mean that if I get an occupational pension of £86.53 weekly they will deduct £2.76 a week? Or will they calculate the amount including Support Group so they will deduct £27.01 a week?

Sorry, I know you're all really busy at the moment with this migration.

Best Wishes

soulgal

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3 days 1 hour ago #305623 by David
Hi soulgal

For New Style ESA it is £86.53 minus £85 =£1.53 and then halved giving a 76.5 pence deduction.

Hope this helps
David

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: soulgal

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3 days 1 hour ago #305625 by soulgal
Hi David

Thanks so much, I would never have worked that out for myself!

Best Wishes
soulgal
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