Contribution based ESA

paulpw

Hi I’m new to all this stuff but unfortunately at the age of 61 my health declined having COPD having to use portable oxygen! And not having a very good mobility at present. I hade no choice but to take I’ll health retirement. My question is I get higher rate pip with higher mobility, I also get contribution based ESA at the enhanced rate. If I was to take my 25% tax free part of my pension would this effect my ESA payments. As I can no longer travel abroad I was thinking about getting a static caravan and financing it with my tax free allowance from my pension. 

poppy123456

There's no such thing as contributions based ESA at enhanced rate. If you're in the Support Group and your ESA is more than £117.60/week (£235.20/fortnight) then at least part of it will be Income Related. This means that a lump sum from your pension will be classed as savings. If you have more than £16,000 then entitlement to all means tested benefits end.

For every £250 or part there of over £6,000 then there's a £1/week deduction. Weekly/monthly income from a pension will reduce the ESA £1 for £1.

For contributions based/New style ESA then savings do not affect it. If you have a weekly/monthly income from your pension then anything up to £85/week is ignored. For every £1 over this amount there's a 50p/week deduction for your ESA.

paulpw

Sorry getting mixed up with pip?
I get the support group and I get £235.20 every two weeks. I did say I’m new to this having worked since leaving school. 

poppy123456

That amount confirms that your ESA is indeed either contributions based or New Style ESA, which isn't means tested.  If it's new style, have you checked entitlement to Universal Credit? It's means tested so if you have savings/capital of more than £16,000 you're excluded from claiming. If you live with a partner you'll need to claim as a couple.

paulpw

I’m not entitled to any means tested benefits as I have savings! Just needed to know if I could take 25% tax free bit of my pension pot to enable me to purchase a static caravan so as I can escape the home once in a while. Without effecting my ESA payments.  

poppy123456

It doesn't affect your ESA because it's not means tested.

paulpw

Poppy123456
Thanks for the help 

L_Volunteer

I would just like to add a warm welcome @paulpw. Please don't hesitate to let us know if there's anything else we can do to support you 

paulpw

Thanks for the welcome