Would redeeming my pension pot to buy our council house affect my ESA?

lucyhecbon1
lucyhecbon1 Community member Posts: 1 Listener
edited August 2021 in Employment and Support Allowance (ESA)
Hi there
I have been offered the chance to redeem my pension pot fund  in November when I am 60.  My son and I would like to use this pot to buy our council house if possible.  Would a) the pension pot (under £10,000) effect my ESA and would buying out council house effect my ESA.  I may not have explained this well but would really appreciate some advice please.

Many blesings to all.

C

Comments

  • calcotti
    calcotti Community member Posts: 10,005 Championing
    If your ESA includes any income based amounts then any capital over £6000 will reduce your ESA by £1/week for every £250, or part thereof, over £6000. So £10,000 would reduce your ESA by £16/week (if you have no savings already).

    Buying your home will not affect your ESA but will obviously end any Housing Benefit you receive,
  • Cher_Alumni
    Cher_Alumni Scope alumni Posts: 5,715 Championing
    edited August 2021
    Hi @lucyhecbon1 and a warm welcome to our community, how are you doing today?

    Has @calcotti 's response helped you better understand how redeeming your pension would impact any income-based amounts of ESA? 

    Just to let you know, I've amended the title of your thread to help others spot your question easier.  Please let us know if you remain unsure of anything or would like to ask another question.  Take care.
  • getthrough
    getthrough Community member Posts: 13 Listener
    Hello lucyhecbon there is something called capital disregard where if you're planning to buy a house they will disregard the sum you are reserving for that, for several months, to give you time to buy a house. This link might help and then you could write and ask the dwp, quoting from the info in this link https://www.google.com/url?sa=t&source=web&rct=j&url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932331/admh2.pdf&ved=2ahUKEwip8YCDrqLyAhXo_7sIHaDiACIQFnoECAYQAg&usg=AOvVaw1QroOTEWHkDmlGgeyEhBr3
  • getthrough
    getthrough Community member Posts: 13 Listener
    I hope that link works Lucy ! But although I'm no expert I know there is definitely capital disregard if you are going to buy a house to live in so even if my link doesn't work you can write to dwp ( better than phoning so that they put the answer down in black and white) asking them about it for your particular case.

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