NHS PENSION & ESA

Hi everyone, I after some much needed advice and wondered if anyone on her can help me.
I am claiming ESA and in the support group, in December I am 60 and due to get a pension from the NHS its a lump some award of around £7000.00 and an annual pension of around £2337.00 per annum. Can anyone tell me how this will affect my ESA . I,m wondering if it would be wiser to maybe only take half the lump sump and have a biģger pension or whether to be take it all.

Thank you
Susan

Thanks Gordon

Hi soo. If you are in the support group and contribution based, taking a £7k lump sum should not affect your ESA payments. As Gordon says any pension you get does get taken into account. However as long as your pension and ESA payments added together do not take you over your £11k a year personal allowance it should not affect you.Obviously if income related you need to get proper advice. Hope that helps.

Mememe's comments about £11000 personal allowance relate to income tax. The usual situation is for tax to be deducted from the pension, if required, as DWP do not collect tax.

However, being in receipt of a personal pension can reduce the amount of ESa paid, even if you are in receipt of contributory ESA only.

The first £85 per week of any pension is disregarded, then ESA is reduced by 50p for every extra £1 received.

If a claimant is on income-related ESA then every bit of the pension will be counted and will reduce the ESA on a £ for £ basis.

Even if your pension will be less than £85 you should notify DWP as it can save a lot of hassle at a later date!