ESA LWCRA AND PENSIONS

Andy1966

Hi, I was assessed by the DWP in 2021 and they assessed me as having a low capacity to work and find work. I carried on working until last month, when I found that I couldn't cope anymore. I receive ESA and UC, Can I take some money out of my pension pot and not be disqualified from the above benefits? I'm nearly 58. I'm a little confused and worried at the moment, it's not a big pot, as I have only worked part time for a number of years, due to my illnesses. Andy [removed by moderator - personal information]

honeyhoney

I'm on UC and LCWRA, I took 3500 from my pension last year, I even informed UC about it and I had no problems.

poppy123456

If you take a lump sum your ESA won't be affected because it's not means tested. Your UC is means tested so if the lump sum takes your capital to more than £6,000 there's a £4.35/month deduction for every £250 or part thereof over that amount. 

For a weekly/monthly draw down anything up to £85/week is ignored for your ESA. For every £1/week over that amount then ESA is reduced by 50p/week. 

For UC a weekly/monthly draw down will reduce your UC £1 for £1.

If you're claiming council tax reduction and you take a lump sum then some local Authorities have a savings limit of £6,000 before entitlement ends. All LAs have their own rules so you will need to check with them what their limit is. 

Rosie_Scope

Hi @Andy1966, welcome to the community. Just so you know, I've removed your surname from your post to keep you safe. Sorry things are a bit worrying at the moment, but it looks like you're well on the way to getting some support with your question. I hope the community will be a useful place for you

Andy1966

Thank you for all of your kind advice. Andy.