Money

lynnp

Hi I hope someone can help me with this, I'm currently receiving ESA, with severe disabilities premium. Im also receiving pip. As I am now over 55 I can claim my private work pension. I could claim a lump sum of £34.000 and £5000 a year. I would just like to know how this would affect these benifits, I also receive housing and council tax benefits. I would be grateful for any advice, thanks lynn

poppy123456

Hi and welcome,

I'm one of the community champions here on scope and i'm here to help and advise others.

PIP isn't affected because it's not means tested. At least part of your ESA is Income related because you're receiving the severe disability premium, as you're receiving this then you'll also be claiming the Enhanced disability premium as well. You will need to check if part of your ESA is Contributions based. If it is then £111.65 per week will not be affected , providing your pension is not more than £85 per week. If it's more than this then your ESA will be reduced further by 50p for every £1 over £85.

The remainder of your money each week £82.65 will be affected and will stop completely and so will your housing benefit and council tax reduction. This is because any savings of more than £16,000 means you're no longer entitled to any means tested benefits.

If you decide not to take the lump sum then your ESA Income related will be reduced £1 for £1 by any weekly/monthly pension you receive.

All changes must be reported. Hope this helps.

lynnp

Thank you very much that was very helpful, seems it's not really in my interest to take the lump sum. I could take £16.000 instead, would you know how that would affect me. I would appreciate any  more advice you could give me, all the best lynn

poppy123456

No problem. Anything £6,000 and over will affect your means tested benefits £1 for every £250 over that amount. This means that it will be £4 reduction for every £1,000 over £6,000.

Your weekly pension will still affect your Income related ESA £1 for £1 and you will also need to report those changes to your local council.

lynnp

Thank you very much, really appreciated

poppy123456

You're welcome.