Can uncrystallised pension lump sum affect ESA?

philp
philp Online 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   

Comments

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    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. 
  • philp
    philp Online Community Member Posts: 2 Listener
    Thank you for your assistance 

Categories