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Need advice about my benefits and pension payments please.

here4help

Hello there I hope everyone is well.

I am currently on PIP, Industrial Injury and ESA, I have the highest rate of PIP with both components.

I receive both income based and contributions based ESA.

My question is when I start receiving my pension, I will have a lump sum which exceeds the £16,000 that’s allowed, I will also receive a monthly income which I am also pretty sure which will render me ineligible for ESA.

Due to the fact I receive both contributary and income related ESA will I lose ESA completely, or just the means tested section?

thanks

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poppy123456

The lump sum will mean your Income Related ESA will end. The contributions based part (£117.60/week) will continue because it’s not means tested.
Even if you don’t take the lump sum your pension will reduce any Income Related ESA £1 for £1.
For contributions based any pension of up to £85/week is ignored. For every £1 over this amount your ESA will reduce by 50p.

Do ESA know you’re also claiming IIDB? Because this also reduces Income Related ESA £1 for £1 so you should already have a deduction for this.

calcotti

The contribution based ESA is not affected by the capital.

if your regular pension is less than £85/week the contribution based ESA will be unaffected. If the regular pension is more than £85/week then the contribution based ESA will be reduced by 50% of the amount over £85. Obviously this could result in no ESA depending on the pension amount.

here4help

Thank you for the reply, very helpful

In regards to the 25% tax free pension lump sum wich will be over £16,000 will they take any money from this ?

thanks

here4help

poppy123456 said:

The lump sum will mean your Income Related ESA will end. The contributions based part (£117.60/week) will continue because it’s not means tested.
Even if you don’t take the lump sum your pension will reduce any Income Related ESA £1 for £1.
For contributions based any pension of up to £85/week is ignored. For every £1 over this amount your ESA will reduce by 50p.
Do ESA know you’re also claiming IIDB? Because this also reduces Income Related ESA £1 for £1 so you should already have a deduction for this.

Thank you for the reply, very helpful

In regards to the 25% tax free pension lump sum wich will be over £16,000 will they take any money from this ?

here4help

calcotti said:

The contribution based ESA is not affected by the capital.

if your regular pension is less than £85/week the contribution based ESA will be unaffected. If the regular pension is more than £85/week then the contribution based ESA will be reduced by 50% of the amount over £85. Obviously this could result in no ESA depending on the pension amount.

Thank you for the reply, very helpful

In regards to the 25% tax free pension lump sum wich will be over £16,000 will they take any money from this ?

poppy123456

The lump sum will end all your means tested benefits. This includes council tax reduction and housing benefit if you claim them.

calcotti

Your benefits will not reduce your lump sum. Simply that your means tested benefits will stop as soon as you have more than £16,000.

here4help

poppy123456 said:

The lump sum will end all your means tested benefits. This includes council tax reduction and housing benefit if you claim them.

thank you, is there an online calculator where I can type my monthly pension salary into to check if I will receive any ESA? im pretty sure i will get nothing after i draw my pension just want to be sure thanks.

here4help

calcotti said:

Your benefits will not reduce your lump sum. Simply that your means tested benefits will stop as soon as you have more than £16,000.

poppy123456

https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=46b0499d-a4bc-4958-9bbc-97fe9296d12c

Or if you can tell us how much your pension will be then we can advise whether there’s any ESA entitlement.
If your pension ends your ESA then you need to ask yourself is it worth taking the monthly income.
Just so that you’re aware, you don’t need to make the same comment twice to individual members because we can see all your comments.

here4help

poppy123456 said:

https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=46b0499d-a4bc-4958-9bbc-97fe9296d12c
Or if you can tell us how much your pension will be then we can advise whether there’s any ESA entitlement.
If your pension ends your ESA then you need to ask yourself is it worth taking the monthly income.
Just so that you’re aware, you don’t need to make the same comment twice to individual members because we can see all your comments.

Thank you Poppy, sorry for posting twice i wanted to reply to both people not to be rude lol, I didn’t realise everyone gets notified just the same, i don’t know how much im getting each week yet when i do i will either use that calculator you linked me to or ask here again thank you so much for the help.

here4help

here4help said:

poppy123456 said:

https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=46b0499d-a4bc-4958-9bbc-97fe9296d12c
Or if you can tell us how much your pension will be then we can advise whether there’s any ESA entitlement.
If your pension ends your ESA then you need to ask yourself is it worth taking the monthly income.
Just so that you’re aware, you don’t need to make the same comment twice to individual members because we can see all your comments.

Hi Poppy perhaps you could help me with something else ?

I currently have a family member that looks after me full time, they receive no money for doing so i have told them to apply for carers allowence but they said they dont want to take money from me to give to them.

Can they claim anything for looking after me full time in there own right without affecting my benefits

thanks.

poppy123456

If your ESA includes the Severe Disability Premium then a claim for carers allowance will end the SDP.

If the Income Related ESA ends because of either the lump sum or the monthly pension income then they can claim carers allowance, providing they don’t earn anymore than £132/week.

Do they claim any other benefits their self?

here4help

Hi poppy they dont claim any other benefits =]

poppy123456

Do they work? If not then how do they support theirself?

calcotti

here4help said:..is there an online calculator where I can type my monthly pension salary into to check if I will receive any ESA? im pretty sure i will get nothing after i draw my pension just want to be sure thanks.

As regards the pension and ESA. The pension figure to be used is your gross pension amount (before any tax is deducted, if applicable). The weekly amount will be taken as the annual amount divided by 52.

Given that the weekly amount of ESA Support Group is £117.60/week this means that the ESA will reduce to nil if the pension is more than £16,650 per annum.

Note to that if the ESA payments stop you can maintain a ‘credits only’ ESA claim which means that you still get NI credits towards your future state pension entitlement. (Technically it’s NI credits due to having limited capability for work and nothing to do with ESA but is nonetheless usually referred to as credits only ESA.)