Hi, my name is KayR!

KayR
KayR Community Member Posts: 2 Listener
in Start here and say hello

If a person is on ESA contributory support and take a lump sum from a pension below £6,000 do they need to advise DWP under change of circumstances and do they need to keep receipts for any payments made from that lump sum afterwards for the DWP or are they free to spend it as they wish or is it considered by DWP as an income?

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  • OverlyAnxious
    OverlyAnxious Community Member Posts: 6,505 Championing

    Hi,

    A lump sum pension payment is considered as savings, not income. So you do not need to report it and can spend it however you like.

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  • KayR
    KayR Community Member Posts: 2 Listener

    thank you for your reply

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  • Mary_Scope
    Mary_Scope Posts: 6,299 Scope online community team

    Hi @KayR and a warm welcome to the community from me!

    I see that OverlyAnxious has already answered your question and provided some good information so I won't add anything else today but it's lovely to have you here on the community😊

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