Hi , Im on contributory ESA support group and i believe any weekly pension payments above £85 effects the amount you get but does annual lump sum drawdowns effect the amount of the ESA payment ?
If you receive Contribution Based ESA only then a lump sum payment will not affect your ESA although further ones might, if you take a regular payment then there is an £85/week disregard followed by £1/week deduction for every £2 in excess of the £85.
If you receive Income Related ESA in part or in whole then any lump sum will be treated as capital, see the following
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