Can uncrystallised pension lump sum affect ESA?

philp

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   

calcotti

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. 

philp

Thank you for your assistance