Question about private pensions and ESA ..Support

TILLY T

Whether you are affected will depend on whether you are receiving Income Related ESA in part or in whole, if you are then you will be subject to the capital and savings rule. See

Asset rule for ESA(IR)

It is quite possible that your re-assessment has been deferred by the DWP due to the delays in the system at present, however, you will need to contact them about this for confirmation and when you might reasonably expect a new ESA50.

Gordon

TILLY

I am afraid that we cannot give detailed financial advice on the forum, you need to get face to face advice from a qualified advisor.

Everybody receives a Personal Allowance in regard to tax and will only pay tax if their taxable income exceeds this, see

www.gov.uk/income-tax-rates/current-rates-and-allowances

There is no limit on savings for ESA(CB).

Please be aware that whilst the Government have changed the rules on how people can now receive their pension, they have not changed the associated rules regarding the taxation of lump sums paid from pension pots, so even though the amounts you are talking about are relatively small, some of the amount you cash in may be liable to tax.

Gordon