I'm in ESA SG. Will taking LA and NHS pensions affect my ESA?

Marigold54

I'm currently on contribution based ESA and I am in the support group. I am thinking of taking my local authority pension on the basis of having the maximum lump sum of £26500 and an annual income of £3950. I also get an NHS pension of £2050 per annum. How will this affect the ESA please? Can anybody help me?  

Girl_No1

I am on cbESA too.  Lump sum/capital does not affect cbESA.  Pension - the amount of any occupational pension over £85/wk is deducted at 50p in the £1.00 

From your figures, your combined pensions will be £115/wk approx. 

This will mean a reduction of £15/wk from ESA.    £15 = 50% of £30 (£115-85).

However, if you are claiming any other benefits (other than PIP) it may also affect those.  I have no knowledge of any other benefits.

woodbine

Savings above £16k would lose all means tested benefits, cont.based ESA would be affected as above ^^^,
have you considered having a chat with pensionwise which can be done by phone?

Marigold54

Both replies are most helpful. Thank you so much. I have been dithering about this for a while now. I have contacted Pensionwise previously but they said to call DWP which is easier said than done! 

Many thanks 😊

Girl_No1

@Marigold54 I know precisely what you mean about dithering.  I didn't even know you could apply for cbESA once Statutory Sick Pay expired i.e. whilst still employed still receiving salary (or part-salary).   No deduction to the weekly cbESA rate no matter how much your salary is.

I waited three months after SSP ended which was also three months before my salary would expire. 

I was fortunate that the woman from DWP who rang me queried why I was asking for a date in advance (Feb 21) when my SSP had expired in Aug 20.  She was able to back-date the cbESA payment 12 weeks, which almost (but not quite) took me back to when SSP finished!

For the period I was receiving salary I was paid the full assessment rate £74.35 per week.  However, when my salary ceased and my pension (much less than my salary!) became payable the cbESA payment was reduced to reflect that the pension was more than £85/wk.  

This is information no-one knows until they're in the position, and no-one goes out of their way to make you aware!  

Good luck if/when you decide to apply.   

woodbine

The best time to tele the DWP for anything is as soon as they open before they get busy.

calcotti

Marigold54 said:

Both replies are most helpful. Thank you so much. I have been dithering about this for a while now. I have contacted Pensionwise previously but they said to call DWP which is easier said than done! 

Many thanks 😊

It isn’t the role of DWP to offer advice anyway so that was very poor advice from Pensionwise.

Marigold54

I keep getting to the point of putting my pension claim in the envelope to post to the LA but I then read something else that bothers me. This morning I read about contribution based ESA  and it stated that if you have savings over £16,000 then savings are taken into consideration?

Girl_No1

@Marigold54 I can only speak to my own experience.  I claim cbESA and PIP, there is no capital/savings limit for either of these benefits. My council tax discount, 25% as a sole occupant, remains unchanged too.

For me, the only income/capital the DWP is interested in is pension income and that is only in relation to cbESA.

To be clear:  I do not claim any other benefits, therefore have no knowledge of the impact of savings on those benefits.   

calcotti

Marigold54 said: This morning I read about contribution based ESA  and it stated that if you have savings over £16,000 then savings are taken into consideration?

Capital is completely ignored for contribution based ESA. You must have misunderstood what you read.

Marigold54

Ok! I’m going to post my pension forms then!
Thank you