ESA and taking a tax free lump sum from pension

Puzzleword

Hi I hope someone can help and advise. I’ve got horrific neighbours and to cut a long story short having exhausted police/council etc I’m now selling my house and am looking for a new home. Can I take my tax free pension lump sum of approximately £14,000 to pay off the majority of my mortgage or perhaps use as a deposit for my new house ? Is there a way I can avoid having to tell DWP as the profit from my current home won’t get me to a nice house in a nice area. Adding my tax free lump sum will get me a nicer house in a nicer area and help avoid the worry of living next to rented accommodation- thank you in advance

Alex_Alumni

Hello @Puzzleword thanks for your query, I hope that you'll find the community a supportive and welcoming place.

I am sorry to hear the situation with your neighbours has led to you having to move home. That must've been a difficult decision to make. It can be quite an upheaval, so if you feel like you need any support for your mental health, you can always speak to your GP or reach out here on the community. 

In terms of other advice and support, it might be worth having a look at AdviceLocal or Pension Wise as woodbine has suggested.

If you have any other questions in the meantime, please feel free to ask.

Alex

Puzzleword

woodbine said:

@Puzzleword good afternoon and welcome to scope, first question is are you over 55? then is your ESA contribution based or does it have an income related top up?
Pensions are complicated and for that reason the pension fun might insist that you seek professional advice, that can be obtained from a free govt. service called "pension wise"

Hi I’m on income based ESA and over 55. I’m sorry I’ve probably worded this incorrectly. Im not looking for pension advice - I’ve spoken to the pension provider and can get the money asap but I'm concerned that the DWP might penalise me for having savings, even though the £14K will only be in my bank account for one day before it’s transferred to my mortgage account or to my solicitor. Im aware that paying off a debt won’t be counted as disposing of capital but would they class this as imminent/immediate debt ? 

Puzzleword

Hi @Alex_Scope - I’m receiving treatments and help through secondary NHS care because of this adding and affecting my PTSD which has flared badly because of the rented house residents next door. I want to put as much money into my next property to ensure I have a nice neighbourhood to move to. I’ve been in my current home for 33 years but the last 2 years have been horrific due to the house next door being rented out to scumbags. Thank you for your advice 

Alex_Alumni

That's okay @Puzzleword, on top of everything else that's been happening over the last two years that can't have been easy, so I'm glad you're being supported with the extra impact on your PTSD.

Do take a look at the resources I've linked, and if you feel like we can offer any additional support please do let us know, even if it's just someone to listen  

Keep us updated with how things go, and I hope you get to move to somewhere you feel more settled soon.

Puzzleword

Alex_Scope said:

That's okay @Puzzleword, on top of everything else that's been happening over the last two years that can't have been easy, so I'm glad you're being supported with the extra impact on your PTSD.

Do take a look at the resources I've linked, and if you feel like we can offer any additional support please do let us know, even if it's just someone to listen  

Keep us updated with how things go, and I hope you get to move to somewhere you feel more settled soon.

Are you able to advise on the issue ? Could it be viewed by the DWP that I’m not simply disposing of the £14,000 to obtain /continue on benefits