Can uncrystallised pension lump sum affect ESA? — Scope | Disability forum
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Can uncrystallised pension lump sum affect ESA?

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philp
philp Community member Posts: 2 Listener
edited October 2021 in Employment and Support Allowance (ESA)
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   
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  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    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. 
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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  • philp
    philp Community member Posts: 2 Listener
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    Thank you for your assistance 
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  • woodbine
    woodbine Community member Posts: 11,630 Disability Gamechanger
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    Yes thats what they did when I cashed my pensions in last year, did they stop you tax on the pension withdrawal? if so you may be able to claim some of it back.
    2024 The year of the general election...the time for change is coming 💡

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