Armed forces pension at age 60 - ESA deduction

spb1612

poppy123456 said:

spb1612 said:

 I am also going to receive a lump sum of £12,000 but I am paying £4,000 of outstanding mortgage, £6,000 credit card loan and DWP overpayment of £5,000.  That will not take me over £6,000.

Paying off debts and your mortgage could be classed as deprivation of capital, unless the debts are immediately payable because you're receiving letters demanding payment.

As soon as you receive that money in the bank you need to report the changes to DWP. That amount of money will reduce your Income related ESA by £20 per week. If part of your ESA is Contributions based and you're receiving £128.45 per week then your will lose the income related top up and just receive the Contributions based, which is £111.65 per week.

For UC then the rules are the same for pensions because it's a means tested benefif BUT if part of your ESA is Contributions based then you'll always stay on that because it's not part of UC. You will only move across for any income related top up.

spb1612

I see no sense in investing the money in my bank where I would get 0.24% interest on my savings when I am paying 21% APR for my credit card and 3% for my outstanding mortgage. 

This does not make sense and I would be losing money as a result and it is unreasonable.

Will I be forced to keep the £5,000 in my bank without spending it, I spend more money than I earn and I have to rely on family for help.

spb1612

My occupational pension will be £79 per week.

As stated above, a, occupational pension affects Income related ESA £1 for £1 because it's classed as income, yet one is allowed to work up to 16 hours a week and earn up to £140 per week. 

poppy123456

Permitted work is totally different to a pension.

spb1612

I read that under universal credit certain income is disregarded, would occupational pension be disregarded?  I lost all my pension, but I am on IR ESA. 

Can I switch to universal credit to receive all my pension if this is the case?

calcotti

spb1612 said:

I read that under universal credit certain income is disregarded, would occupational pension be disregarded?  I lost all my pension, but I am on IR ESA. 

Can I switch to universal credit to receive all my pension if this is the case?

Pension income is deducted £1 for £1 from UC, same as for IR ESA.

spb1612

I am on ESA IR, when I migrate to UC, will my pension still be deducted from my UC, the same way as in ESA?

poppy123456

https://forum.scope.org.uk/discussion/comment/913762#Comment_913762

Yes it’s deducted £1 for £1.