Can uncrystallised pension lump sum affect ESA? — Scope | Disability forum
New to the community? Remember to read our community guidelines and our community house rules.
Concerned about another member's safety or wellbeing? Find out how to let us know.

Can uncrystallised pension lump sum affect ESA?

philp
philp Member Posts: 2 Listener
edited October 9 in Employment and Support Allowance (ESA)
Hi 
I receive ESA Contribution based, and was lead to believe that if I take a Uncrystallised lump sum payment that as it is not means tested it will not affect it.
I have received a call today from DWP questioning the payment, I explained that as a non means tested benefit that my (UFPLS ) would not affect it,  I was told that that depends ?
I have explained that I do not receive a pension income  like an Annuity, but they are investigating?
I have explained that I have done nothing wrong which they agree, but would like details from my pension company about the payment.
Should I worry ?
say may have to pay back benefit, can only have £85 of pension income disregarded a week.

advice would be gratefully received 

Phil   

· Share on FacebookShare on Twitter

Comments

  • calcotti
    calcotti Member Posts: 2,997 Disability Gamechanger
    For regular pension income contribution based ESA is reduced by 50% of anything over £85/week.

    As it's a one off withdrawal I would expect it be treated as capital and therefore will not affect your ESA. However DWP are right to investigate to confirm that this is the case. 
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
    · Share on FacebookShare on Twitter
  • philp
    philp Member Posts: 2 Listener
    Thank you for your assistance 
    · Share on FacebookShare on Twitter
  • woodbine
    woodbine Community Co-Production Group Posts: 5,272 Disability Gamechanger
    Yes thats what they did when I cashed my pensions in last year, did they stop you tax on the pension withdrawal? if so you may be able to claim some of it back.
    Offering PIP advice to people with epilepsy.
    · Share on FacebookShare on Twitter

Brightness

Categories

Do you need advice on your energy costs?


Scope’s Disability Energy Support service is open to any disabled household in England or Wales in which one or more disabled people live. You can get free advice from an expert adviser on managing energy debt, switching tariffs, contacting your supplier and more. Find out more information by visiting our
Disability Energy Support webpage.

Fancy a chat in our virtual coffee lounge?

Put the kettle on and have a chat in our coffee lounge with other members. We talk about hobbies, games and anything else you can think of!

Cerebral Palsy (CP) Online Cafe

Here's a new opportunity for people with CP or a similar disability (aged 20+) to get together and chat. The sessions are in partnership with CP Sport so you can find out more and meet people from both organisations.

Are you struggling?

Read our 'Coping with stress, low mood and isolation' support thread for a run-down of ideas on how to banish those blues and feel happier.

What do you think about the community?

Complete our feedback form and tell us how we can make the community a better space for you.

Information about COVID-19

If you have questions about the virus, please read our information and support which includes guidance on benefits, getting food and essentials and Cerebral Palsy.

Back to school this September?

Read tips on how to settle back in and handle any worries you or your children might be having this new term.

Online employment support

Support to Work is an online and telephone support programme for disabled people who are looking for work.