DWP and Private pension

tinks54321
tinks54321 Online Community Member Posts: 15 Listener
in Universal Credit (UC)

I worked for the NHS for 30 years. I was finished on ill health with an expectancy to never be able to work again. I now claim UC as well as NS ESA. I have LCWRA added to my UC. However as I have £651 a month pension from the health service I receive less ESA as I think only about £85 in private pension a week is allowed before deductions are made. Then I have whatever I receive in ESA taken pound for pound from my UC. My pension is classed as unearned income and this is also taken pound for pound from my UC. After this there is very little left. Is this correct ?


I feel discriminated against for being disabled. If I went out and was able to work part time and earned £651 a month (i am unsure if I would still get ESA but either way it doesn’t matter as I have that deducted from my UC) then I would only lose a percentage of my income but because I physically and mentally cannot go out to work and therefore had to receive my private pension early (I have had it since I was 57. I am almost 60 now) I am being penalised and losing it pound for pound. How is that fair ? And more importantly why ? Why because I am disabled and receiving income do I lose it pound for pound but if I wasn’t disabled and working part time for the same amount of money would only lose a percentage ?


Thanks for any advice.

Comments

  • luvpink
    luvpink Online Community Member Posts: 3,211 Championing

    @tinks54321 hi I'm in the same situation as you and unfortunately its true and yes unfair.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,458 Championing

    Yes, it's correct that it's treated as unearned income for UC. Pension income has always reduced means tested benefits like UC, Income Related ESA and Income Support £1 for £1. Same applies to New style ESA.

    As you're also claiming New style ESA pension income of more than £85/week reduces your ESA by 50p/week for every £1 over that amount.

    Are you claiming a disability benefit such as PIP? This isn't means tested so other income doesn't affect the amount you're entitled to.

  • tinks54321
    tinks54321 Online Community Member Posts: 15 Listener

    poppy. Yes I claim PIP. I understand it I just think it’s unfair. I would much prefer not to have my pension and be able to work part time and earn £651 a month and have whatever percentage taken off that. At least that way I am keeping part of what I have earned.

    Unfortunately I am not in a physical or mental position to work so have no choice but to claim my pension but actually don’t benefit from it whatsoever.

    I would happily have it treated as earned income because I was working and earning when this money was paid into my pension and at least benefit from some of it

  • mammatoabully
    mammatoabully Online Community Member Posts: 3 Listener

    Hello, i know this was a year ago but I am facing the same dilemma. Early ill health retirement at 40, I already claim uc with lcwra. When I finish work I will claim new style esa and im aware pension will reduce.

    im also aware uc already reduces pound for pound but I've read government guidelines that says dual claims for ns esa and uc, they o ly deduct the esa amound after deductions.

    so surely uc cant make deductions also and that there is a double deductions rule. I feel we are being penalised.

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