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Hi, my name is Graham70! Does a pension lump sum affect ESA (contribution based) or PIP?

Graham70

I’m after some advice I get ESA contributions and enhanced pip I’m due to get a small inheritance and take a lump sum from private pension total will be about £30000 do I need to inform DWP or does this not matter as it contributions not income related

thank you

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durhamjaide2001

hi I just wanted to say welcome to the community unfortunately I can't suggest anything to help you with this situation but hopefully my comment will bump this up the forum so someone with a bit more knowledge can support you.

However what I can do and will do to help you is suggest that you visit the coffee lounge for a general chat and excuse the pun but if you are wanting fun and games then I would recommend a visit to the games den.

Graham70

how do I join

durhamjaide2001

you have already joined by being in this forum

Rosie_Scope

Hi @Graham70, welcome to the community 😊 As your ESA is contributions based, your lump sum shouldn't affect it. You wouldn't need to inform PIP either as it's not a means-tested benefit. Unless you are on any other means-tested benefits you shouldn't need to notify anyone.

I'll pop your post into our benefits section in case you have any more questions. I hope you'll enjoy being a member here.

Graham70

thank you

poppy123456

Are you 100% sure that your ESA is all contributions based? Many people get confused by the difference between this and Income Related.

If you're in the Support Group and your ESA is more than £138.20/week (£276.40 fortnight) then at least part of it is Income Related. With capital of more than £16,000 entitlement to Income Related ESA will end.

If you're also claiming for help with the rent and/or council tax reduction both of those will also end. You must report the changes.

Either way, even if your ESA is all contributions based, you must inform them that you took a pension drawdown.

Graham70

my esa is support group I get £138.20 a week so is this contributions I don’t get anything else only my pip

luvpink

https://forum.scope.org.uk/discussion/comment/936065#Comment_936065

Hi I'm in support group contribution based (as stated on my award letter)

My savings has not been taken into account but I do have money deducted from my monthly pension.

Graham70

I’m not planning on taking my full pension just 25% to clear some debts etc

will they deduct money for that

Graham70

my letter at the bottom says as I get contributions I will get £138.20 a week so I take it none of this is income related just contributions

luvpink

https://forum.scope.org.uk/discussion/comment/936070#Comment_936070

I'm not sure but they may regard it as what they call 'deprivation of assets'.

Poppy has far more knowledge than I do.

Graham70

what is deprivation of assets

poppy123456

https://forum.scope.org.uk/discussion/comment/936065#Comment_936065

This confirms that your ESA is contributions based/New style. This means that it isn't means tested so capital and pension lump sum withdrawals will not affect it. You still need to report the changes if you take a drawn down from your pension.

The advice if you're claiming council tax reduction and/or housing benefit still applies.

https://forum.scope.org.uk/discussion/comment/936075#Comment_936075

I'm not sure what exactly you're referring to here. Deprivation of capital (DoC) can only apply if claiming means tested benefits. It wouldn't apply here. DoC is where someone has capital and spends it or reduces it deliberately in order to claim a means tested benefit.

https://forum.scope.org.uk/discussion/comment/936068#Comment_936068

Money deducted from your pension? Do you mean that your ESA is reduced because your pension is more than £85/week? There's a 50p/week deduction in contributions based/.New style ESA for every £1/week of pension over £85/week.

Graham70

thank you poppy also I think it’s got lost in the thread I’m due to get inheritance not sure how much but more thank likely fell 16k do I need to report this as well

thank you

luvpink

@poppy123456

Yes I mean that money is reduced from my pension because its more than £85 a week.

poppy123456

https://forum.scope.org.uk/discussion/comment/936132#Comment_936132

No, it didn't get lost in the thread. As your ESA isn't means tested inheritance will not affect it.

If you're claiming housing benefit and/or council tax reduction those will stop.

poppy123456

https://forum.scope.org.uk/discussion/comment/936133#Comment_936133

Money isn't reduced from your pension. It's your ESA that's reduced because of your pension.