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Contribution esa and £85 weekly limit on pension i
- WimbledonP
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4 years 10 months ago #249028 by WimbledonP
Contribution esa and £85 weekly limit on pension i was created by WimbledonP
Hi
I am on contribution esa with a terminal condition.Have a small pension pot and seen that DWP permit £85 per week pension income, without affecting esa. Could this be taken as an annual drawdown of £4420, which is £85 x 52 ie one year at £52 per week. Thanks
I am on contribution esa with a terminal condition.Have a small pension pot and seen that DWP permit £85 per week pension income, without affecting esa. Could this be taken as an annual drawdown of £4420, which is £85 x 52 ie one year at £52 per week. Thanks
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- Gary
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4 years 10 months ago #249032 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Contribution esa and £85 weekly limit on pension i
Hi WimbledonP
If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.
If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA.
First, there is an assets and savings rule if you take a lump sum, see
Asset and savings rule for ESA(IR)
If you have a terminal condition have you applied for DS1500? www.gov.uk/terminal-illness-benefits
Gary
If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.
If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA.
First, there is an assets and savings rule if you take a lump sum, see
Asset and savings rule for ESA(IR)
If you have a terminal condition have you applied for DS1500? www.gov.uk/terminal-illness-benefits
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- WimbledonP
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4 years 10 months ago #249037 by WimbledonP
Replied by WimbledonP on topic Contribution esa and £85 weekly limit on pension i
Thanks. I did already take a small tax free lump sum before, within the rules.
If I have a pension pot and don't want to take it all, but want to receivr a regular amount within the permitted£85 ljmit, could this be an annual drawdown equal to £85 per week. The only alternative I could think of would be to take an annuity to pay £4400 pet year, which I may not live long enough to realise.
How do other people receive contribution esa and £85 per week pension.
If I have a pension pot and don't want to take it all, but want to receivr a regular amount within the permitted£85 ljmit, could this be an annual drawdown equal to £85 per week. The only alternative I could think of would be to take an annuity to pay £4400 pet year, which I may not live long enough to realise.
How do other people receive contribution esa and £85 per week pension.
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- Gordon
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4 years 10 months ago #249045 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Contribution esa and £85 weekly limit on pension i
WimbledonP
If you have already had one lump sum then it is possible that any subsequent call down will be treated as income and subject to the £85 disregard and deduction.
There is no way around the rule, other members either avoid if by staying under the £85 or live with it if their weekly, monthly annual payments exceed it.
Gordon
If you have already had one lump sum then it is possible that any subsequent call down will be treated as income and subject to the £85 disregard and deduction.
There is no way around the rule, other members either avoid if by staying under the £85 or live with it if their weekly, monthly annual payments exceed it.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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