Employment and Support Allowance (ESA)
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DO you have to tell ESA about a small pension payment, or a severance payment from work?

wikkerman61wikkerman61 Member Posts: 3 Listener
This is my first ever post so sorry if any mistakes.
my partner is in receipt on  contribution ESA and in support group since august 2019 after being off work from sept 2018. she has received a phone call saying she is under investigation for not  informing anyone about a severence payment from work she got last november and also not informing about a pension she is getting each month into her bank. The pension is £46per month and the  one off payment was £ 4,000
.we were under the impression that  the esa she is on is NOT means tested so was unaware we had to inform anyone also the pension is so small she totally forgot to inform them .  Any help or advice will be welcome .  thanks in advance
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Replies

  • janer1967janer1967 Member Posts: 11,120 Disability Gamechanger
    Hi and welcome 

    I'm not 100% sure about esa rules and the impact it will have so will leave that to others who have more knowledge 

    All you can do is provide any information they request 

    Just wanted to welcome you 
  • wikkerman61wikkerman61 Member Posts: 3 Listener
    hi janer 1967,
    thanks for the welcome  and reply to  my post
  • QuintyQuinty Member Posts: 47 Courageous
    I find if all very confussing. I think the uncalled for  stress these people cause is very alarming. I know you are alliwed up to I think 9k in savings. I wish I had 9k in savings. You need to survive. You worked for a pension, and paid your tax and NI. There are people who can advise you on here. Please to not to worry.
  • Girl_No1Girl_No1 Member Posts: 100 Courageous
    Is ESA the only benefit she receives, and is it New Style Contribution Based?  If it is the only benefit, and definitely all NSCB, then I am the same - although I do receive PIP too.  For NSCB, DWP are not interested in earnings (including severance payments) at all.  Nor are they interested in savings/investments.

    However, they are interested in pension income.  DWP reduce ESA payments for those in receipt of private/occupational pension income of more than £85/pw.  The reduction is 50p per £1 for every pound over £85/pw.  

    I've read a lot of people believe they are on Contribution Based ESA but when they actually check their statement they have an element of Income Related ESA too.  Not sure how severance payments/pension income affect those with an element of IR ESA, sorry.  

    Does she have a statement of entitlement breaking down what benefit she receives?  That's probably where best to start to work out what's happened. 
  • woodbinewoodbine Community Co-Production Group Posts: 4,428 Disability Gamechanger
    Quinty said:
    I find if all very confussing. I think the uncalled for  stress these people cause is very alarming. I know you are alliwed up to I think 9k in savings. I wish I had 9k in savings. You need to survive. You worked for a pension, and paid your tax and NI. There are people who can advise you on here. Please to not to worry.
    For income related benefits you can have upto £6000 in savings, between £6,000 and £16,000 they are reduced, as far as pensions go then regardless of what basis of ESA then you need to inform them as ESA like a private pension is taxable. Although you are allowed an income of £250 from all sources before you become liable for any tax.
    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • wikkerman61wikkerman61 Member Posts: 3 Listener
    hi girl No 1 and woodbine,
    thanks for your replies and information.Yes she is in the contribution based support group not income related.
    She has been in touch with ESA on the phone and  hopefully its all resolved as all they require is proof of pension and then it will be reviewed by them and they will be in touch with her .Apparently she might be guilty of not informing them ,even though she was never asked, about the pension and be liable for a £50 fine.
    Thanks to everyone who took the time and effort to reply and help,,,,
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