ESA Reduction because of pension

I am currently in receipt of PIP and ESA (WRAG) income based, due to a few health conditions. I recently applied for, and was successful, in obtaining my forces pension early due to my health, I informed DWP last week and have now been informed my ESA has been more than halved, can this be right ?? My health hasn't/wont improve and surely my pension is my entitlement as I worked for it without it affecting my entitlements ?? please help

Hi,

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Irrespective of which ESA "Group" (WRAG or SG) you may be in, the fact that you were in receipt of "income based" ESA (aka Income Related (IR) ESA ) means that your entitlement to payment of any IR ESA is dependent on you passing a means test with respect to capital, assets, savings, household income and any hours worked by a partner if you have one :

Asset rule for receipt of IR ESA

24 hour work rule for payment of IR ESA

A Works/Occupational Pension is classed as household income for the IR ESA means test purposes and would therefore be deducted £ for £ from your IR ESA entitlement/payments.

Even if you were in receipt of Contribution Based (CB) ESA there is still a rule where deductions will be made from you CB ESA if your Works/Occupational Pension exceeds £85/Week.

Your health and how and why the limitations caused by your health conditions qualify you for ESA in either group has no baring on this at all !!

Sorry to be the barer of bad hews, but I hope that clarifies the situation for you !!

There is no such "means test" for receipt of PIP !!

You should Bookmark/Favourite this page in your Internet Browser now. That way you can return to this topic easily to pose any further queries that you may have by replying to the topic.

See : This Topic also !

Thanks in anticipation of your future co-operation in keeping all your ESA related queries to this topic !

bro58

Alexander, I was sent a tax bill last year for approx £2000 for tax due on my ESA payments from the day Iain Duncan Smith made it taxable. I am in receipt of a private pension but I was unaware of the 'change in the law'.

Peter wrote: Alexander, I was sent a tax bill last year for approx £2000 for tax due on my ESA payments from the day Iain Duncan Smith made it taxable. I am in receipt of a private pension but I was unaware of the 'change in the law'.

Hi P,

Although CB ESA is classed as "Taxable Income" IR ESA is not !

bro58

Alexander

When you applied for the early payment of your HM Forces Pension were you not warned that payment of the pension could effect your entitlement to DWP benefit and you should seek advice?