Contribution based ESA & pension drawdown

Linda62
Linda62 Community member Posts: 2 Listener
in Employment and Support Allowance (ESA)
Hi,
My husband receives Contribution based ESA & we need to take a lump sum from his private pension to buy a car as ours has died. He has already taken the 25% tax free so he will have to pay tax in this withdrawal. Will it affect his ESA payments?
Any advice would be greatly appreciated.

Comments

  • poppy123456
    poppy123456 Community member Posts: 59,054 Championing
    Contributions based ESA isn’t means tested so it won’t affect it. 
  • Linda62
    Linda62 Community member Posts: 2 Listener
    Thank you poppy123456, I thought that should be the case but wanted to check as he would now have to pay tax on this withdrawal. We are looking for around £8k.
    I’ve read so many things, I’m just confused! 
  • Hannah_Alumni
    Hannah_Alumni Scope alumni Posts: 7,906 Championing
    @linda62 Welcome to the community! :) I'm glad Poppy was able to help with your query. Sorry to hear the car died! Hope it hasn't been too stressful! 

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