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ESA and PIP vs. Private Pension.
- Elizabeth
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1 week 6 days ago #290292 by Elizabeth
ESA and PIP vs. Private Pension. was created by Elizabeth
Hi, hope you can help with my query?
My husband is no longer in work due to incapacity/capability of performing his duties so his company have terminated his employment, since mid-March 2024 under the capability policy. My husband has several fractures of his spine with no future view of him returning to work.
He has just been awarded PIP standard rate with a review date of September 2026. He also receives ESA contributory based standard rate which will finish in October 2024. He has within the last 3 weeks had an assessment for his ESA to which we are waiting the outcome. I am actually unsure why he was called in for an assessments as we have never claimed benefits and this all new to us. Just to note, I work full time and we both do not claim any other benefits.
My question is this…my husband can access his pension which would equate to approx. £250 per month but also would receive approx. £50k as a lump sum. Would he lose any PIP or ESA accessing his pension at this time, bearing in mind he is waiting his outcome from his assessment?
Any advice would be gratefully received.
My husband is no longer in work due to incapacity/capability of performing his duties so his company have terminated his employment, since mid-March 2024 under the capability policy. My husband has several fractures of his spine with no future view of him returning to work.
He has just been awarded PIP standard rate with a review date of September 2026. He also receives ESA contributory based standard rate which will finish in October 2024. He has within the last 3 weeks had an assessment for his ESA to which we are waiting the outcome. I am actually unsure why he was called in for an assessments as we have never claimed benefits and this all new to us. Just to note, I work full time and we both do not claim any other benefits.
My question is this…my husband can access his pension which would equate to approx. £250 per month but also would receive approx. £50k as a lump sum. Would he lose any PIP or ESA accessing his pension at this time, bearing in mind he is waiting his outcome from his assessment?
Any advice would be gratefully received.
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- Catherine
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1 week 6 days ago #290294 by Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Catherine on topic ESA and PIP vs. Private Pension.
Hello Elizabeth and I am sorry to hear about your husband.
PIP is never impacted by any change in financial circumstances, whether they are good or bad. ESA will almost certainly be impacted.
Having said that, and been delibrately vague on the possible impact on his ESA award, I must stress that this sort of individual advice is beyond the scope of this forum. You really should seek personal advice from a local advisor who can look at all the details of your situation.
You might also find it useful to run various scenarios through one or more of benefits calculators which are out there www.gov.uk/benefits-calculators - but nothing beats good personal advice. Those calculators are not always right!
Sorry not to be more helpful than that,
Catherine
PIP is never impacted by any change in financial circumstances, whether they are good or bad. ESA will almost certainly be impacted.
Having said that, and been delibrately vague on the possible impact on his ESA award, I must stress that this sort of individual advice is beyond the scope of this forum. You really should seek personal advice from a local advisor who can look at all the details of your situation.
You might also find it useful to run various scenarios through one or more of benefits calculators which are out there www.gov.uk/benefits-calculators - but nothing beats good personal advice. Those calculators are not always right!
Sorry not to be more helpful than that,
Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Jones1988
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1 week 5 days ago #290367 by Jones1988
Replied by Jones1988 on topic ESA and PIP vs. Private Pension.
It appears to me that your Benefits wont be reduced. The pension is less than £85 per week. There is a discussion here.
www.benefitsandwork.co.uk/forum/10-dla-e...er-85-pounds-and-hrc
www.benefitsandwork.co.uk/forum/10-dla-e...er-85-pounds-and-hrc
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- Gary
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1 week 5 days ago #290369 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic ESA and PIP vs. Private Pension.
Hi Elizabeth
As your husband is in receipt of CB ESA, this will last for one year unless he is placed in the support group, inwhich case he will receive CB ESA indefinitely until he is next re-assessed.
The first lump sum that your husband takes should be treated as capital and therefore should have no effect on his ESA(CB), any regular payments and possibly and any second lump sum will be treated as pension income and may reduce his ESA(CB) depending on the amount.
There is an £85/week disregard followed by a £1/week deduction for every £2 in excess of the £85.
Gary
As your husband is in receipt of CB ESA, this will last for one year unless he is placed in the support group, inwhich case he will receive CB ESA indefinitely until he is next re-assessed.
The first lump sum that your husband takes should be treated as capital and therefore should have no effect on his ESA(CB), any regular payments and possibly and any second lump sum will be treated as pension income and may reduce his ESA(CB) depending on the amount.
There is an £85/week disregard followed by a £1/week deduction for every £2 in excess of the £85.
Gary
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- Elizabeth
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1 week 3 days ago #290430 by Elizabeth
Replied by Elizabeth on topic ESA and PIP vs. Private Pension.
Thanks Gary.
Just to get into my head, my husband has been with the same company for 29 years. His pension is split between 3 different pension providers as over time the company has changed the pension providers. So, it looks like he has 3 pensions to which he can access? However, if he takes the full pension as a lump sum out of 2 of these, then he remains I pension outstanding to which he will take a lump sum and then pension monthly. So, are you saying he would technically have 3 lumps sums or would they count as one overall as he was with the same company throughout his career? Hope I have explained it correctly?? Thanks 😊
Just to get into my head, my husband has been with the same company for 29 years. His pension is split between 3 different pension providers as over time the company has changed the pension providers. So, it looks like he has 3 pensions to which he can access? However, if he takes the full pension as a lump sum out of 2 of these, then he remains I pension outstanding to which he will take a lump sum and then pension monthly. So, are you saying he would technically have 3 lumps sums or would they count as one overall as he was with the same company throughout his career? Hope I have explained it correctly?? Thanks 😊
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- Gary
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1 week 2 days ago #290476 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic ESA and PIP vs. Private Pension.
Hi Elizabeth
I am not a pension expert, I know that if you add all the pensions together and they come to more than £85 a week then for every £2 over the £85 you loose £1 in your CB ESA.
In regards to tax on pensions, I would advise you to contact Pension Wise; www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise
Gary
I am not a pension expert, I know that if you add all the pensions together and they come to more than £85 a week then for every £2 over the £85 you loose £1 in your CB ESA.
In regards to tax on pensions, I would advise you to contact Pension Wise; www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise
Gary
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