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TOPIC: SDA migration to ESA - pension rules

SDA migration to ESA - pension rules 8 years 4 months ago #39131

Hi,

As I understand it, SDA is a non-means tested and tax-free benefit whilst it's replacement, ESA(c), is taxable and subject to pension rules similar to those for Incapacity Benefit (not to mention ceasing after 12 months for those in the WRAG).

My question concerns what constitutes pension income for ESA purposes.

In a person of working age in receipt of a monthly payment resulting from a deceased parent's Pension Scheme having provision for dependents too disabled to ever work, would that payment be classed as a pension and be counted when calculating any ESA due?

I seem to remember reading somewhere that persons on HRC DLA are exempt from the IB pension rule - is that correct and would it apply to ESA as well? (not that DLA will be around much longer by the look of it!!).

I'm just have the strong feeling the person I care for is going to take a multi-thousand pound hit to her annual income in a couple or three years time.

w.

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Re:SDA migration to ESA - pension rules 8 years 4 months ago #39152

Hi winterchild

SDA has not been replaced by ESA, if you currently in receipt of SDA then you will continue to receive it. See here

www.direct.gov.uk/en/MoneyTaxAndBenefits...edpeople/DG_10018894

You need to speak to local CAB or a Community Law office if you want more specific information regarding what you are eligible for and how much..

Income, including pensions usually counts against any ESA payments, however, there may be exceptions, there are different rules for ESA(CB) and ESA(IR) as to when those deductions start.

There is no exception for those getting the highest rate disability living allowance (DLA) care component.

Hope this helps.

Gordon

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

Re:SDA migration to ESA - pension rules 8 years 4 months ago #39170

Gordon,

Thank you for your kind reply.

Yes, I know ESA hasn't replaced SDA yet, but I was just tooling up (mentally!) for the forthcoming migration of most incapacity benefits to ESA.

Also, I was not referring to myself but the person I am responsible for looking after.

It is very disappointing that the income I mentioned may be taken into account. I expect she will have to fall back on the guarantee that you will not get less under the new arrangement (until 2020) than you got under the old.

Sincerely,
w.

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Re:SDA migration to ESA - pension rules 8 years 4 months ago #39173

Hi,

Those in receipt of SDA will be migrated onto ESA once the full migration starts.

I haven't been well today, so I'm just back off to bed. Hopefully I'll be able to post further information tomorrow.

Good night.

Jim

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PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems

Re:SDA migration to ESA - pension rules 8 years 4 months ago #39356

  • waltwhitman
It is very disappointing that the income I mentioned may be taken into account. I expect she will have to fall back on the guarantee that you will not get less under the new arrangement (until 2020) than you got under the old.

Sincerely,
w.


Are you expecting to fall back on this 'guarantee' because the lady you care for is receiving SDA? I only ask because the aim is to save money and they don't seem to care how ill or disabled people may be or what financial difficulties they will face - so thousands of folk are already struggling because their benefits have gone. I'd love you to be right and hope things turn out well.

Regards,
WaltW

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Re:SDA migration to ESA - pension rules 8 years 4 months ago #39425

waltwhitman,

Well they did state it in the run-up blurb, and if it appears in the legal instruments enacting the migration it must stand.

However she has to make it across the divide from SDA to ESA in the first place, which is the crux of the matter in my view. I don't trust such a fluid and adversely weighted process. Slippery devils.

Thank you for your kind sentiments.
w.

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