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TOPIC: esa /25%tax free cash from my pention

esa /25%tax free cash from my pention 1 week 5 days ago #236924

hi I am on esa and I am in a support group I am 55 years old and my 25%tax free cash came though from my pension it was £23.000 lump sum will this affect my esa if so how
do you know what documents will I have to send off if any
I have agreed to a drop down pension I do not have any of the cash left as I was in so much debt
I am really worried as a compliance officer is ringing me to conduct a interview with me
please help

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esa /25%tax free cash from my pention 1 week 5 days ago #236931

sinbad

If you are only receiving Contribution Based ESA then a one-off payment should not affect your ESA(CB) and should be treated just as capital/savings.

If you are receiving Income Related ESA in part or in whole then the following rule applies.

Asset and davings rule for ESA(IR)

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

esa /25%tax free cash from my pention 1 week 5 days ago #236945

hi I am income related
do you know what documents I need to send in
do you know when they will take it back to I recived it in june

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esa /25%tax free cash from my pention 1 week 5 days ago #236948

sinbad

I would expect them to want to see the pension documents and in particular the one covering the payment, bank statements for the periods immediately before the payment and since.

If the payment was made in June, then there will be a recoverable overpayment of your ESA(IR) from the day you received the pension payment.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

esa /25%tax free cash from my pention 1 week 5 days ago #236950

hi Gordon I will be getting a phone call from a officer on Monday 16th
hope they wont want it all back in one hit

sinbad

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esa /25%tax free cash from my pention 1 week 5 days ago #236953

sinbad wrote: hi Gordon I will be getting a phone call from a officer on Monday 16th
hope they wont want it all back in one hit

sinbad


It may depend on whether you are still entitled to any ESA(IR) after you have cleared your debts, there are limits on how much the DWP can deduct from your payments.

Be aware, you may also be asked to justify the disposal of the pension payment, as an example, clearing a mortgage early may be seen as unreasonable and you could be considered as still being in possession of the money, this is known as Deprivation of Capital.

Gordon

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Moderators: GordonGaryBIS