ESA and private pension and paying tax

lma

I'm.currently I'm recept of new style esa at £148.50.I have been awarded a private pension on ill health grounds Yet to claim.I understand that esa allow £85. Per week of private pension, my pension will be above this. I understand that this will reduce the amount of esa I get,I've have worked this out as as a reduction to a payment of £70 per week ESA.


A friend has told me that for Hrmc purposes the Dwp will still say im getting the the full award at £138.50 per week, not £70 per week.So it might not be worth me claiming ESA at all, as the whole amount of ESA per month will count as earnings for tax purposes, despite me  only getting reduced amount?They say I need to balance whether it’s worth claming ESA as it will push me further over my personal tax allowance and it might be counterproductive.