ESA and SIPP Drawdown effect on contribution-based ESA

Nails121
Nails121 Community Member Posts: 5 Listener
edited October 13 in Employment & Support Allowance (ESA)

I am receiving ESA enhanced rate .

I have made a few lump sum withdrawals over the past four years since receiving the ESA. ESA is contribution based not income based. DWP have contacted me as they are looking into whether it’s going to affect my benefit. I wasn’t aware that it was connected as I’m only on contribution based ESA?

Comments

  • Rachel_Scope
    Rachel_Scope Posts: 5,231 Online Community Team

    Hi @Nails121 and welcome to the community. I'm not sure why withdrawing from the SIPP would affect contribution-based ESA. Are you on any other benefits that are means-tested?

  • Nails121
    Nails121 Community Member Posts: 5 Listener

    No I don’t have any other income

  • Nails121
    Nails121 Community Member Posts: 5 Listener
  • Nails121
    Nails121 Community Member Posts: 5 Listener

    I had a telephone call from DWP telling me I had missed a telephone appointment this morning for an interview about it? I thought it was a scam as I haven’t received a letter advising me of the appointment . He told me he was interviewing me as we spoke ! I was shocked and wouldn’t tell him anything as I didn’t have any information in front of me . I honestly thought it was a scam call . I believe the ESA benefit wouldn’t be affected by any random withdrawals from my SIPP . I haven’t made any since 2024? I used it to purchase something that year. It’s definitely contribution based ESA and hasn’t been questioned before?

  • Kimi87
    Kimi87 Community Member Posts: 9,141 Championing

    Pension payments can affect New Style ESA.

  • Nails121
    Nails121 Community Member Posts: 5 Listener

    I have never been informed that I’m now receiving New ESA? And any SIPP Drawdown payment have been prior to the new ESA ?

  • Kimi87
    Kimi87 Community Member Posts: 9,141 Championing
    edited October 14

    All ESA paid is now New Style ESA. Everyone not on Universal Credit was converted automatically last December. It was just a name change really.

    Even before that, pension payments had the potential to affect the amount of CB ESA you were eligible for.

    I'd recommend getting advice from a trained benefits advisor.

    https://advicefinder.turn2us.org.uk/

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