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TOPIC: ESA reassessment feeling overwhelmed.

ESA reassessment feeling overwhelmed. 3 weeks 6 days ago #172878

Hello,

I hope you can help me please as I’m quite confused at the moment. Recently, the DWP sent a benefits letter to my mum informing her that her ESA will be £109.30 a week because she has been assessed and placed in the support group. I assume they did this on their own because they haven’t sent out the ESA claim form in quite awhile. I was unsure why it has gone up around £4, but then another letter came yesterday saying that part of her benefit for 2015-2016 is taxable. Again I don’t know why there is a change.

However, this morning we got a letter from the council about the council tax, informing us that due to my mum being reassessed as contribution based, as a result, she will not get the help she did with the council tax reduction. I then realised that because of that change in the ESA, maybe that is putting her over the threshold of 125.05 a week.

So I went back over the letters sent by the DWP and on the page where they show you how they calculate her benefit, it does not take into account her private pension. I compared the new letter to one that was dated July 2016 in which they did take that into account and that would mean her ESA should drop to around £104. This would put her below £125.05 weekly. Is it possible they have calculated it wrong? I was always under the impression that when you received a private pension they deducted this amount from what the ESA in order to work out how much to pay weekly. My mum’s only income is ESA and the private pension. Regarding the private pension, this tax year they wrote to us to say that her private pension would remain the same because something was a minus this year, so on that front, there has been no increase there either.

I plan to call the DWP Monday, but I just wanted to check here first. Could someone please explain why it has changed to contribution based?

Thank you for reading.
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ESA reassessment feeling overwhelmed. 3 weeks 5 days ago #172907

  • Gordon
  • OFFLINE
  • Forum Moderator
student

The current ESA(CB) rate is £109.30 (£73.10 + £36.20)

ESA(CB) is always paid when the claimant is eligible and ESA(CB) has always been taxable.

From what you have posted, your mother was receiving ESA(CB) with an ESA(IR) top-up, either;

- the pension is new
- the pension has increased
- there has been a reduction in the payable amount for ESA(IR) has her PIP award changed?

The pension is deducted £ for £ from any ESA(IR) until the payable ESA(IR) amount less than the payable ESA(CB) amount at which point only the ESA(CB) is then payable.

So I am guessing her latest letter says something like (I'm guessing amounts)

ESA(IR) calculated - £125.05
pension - £20.00
ESA (IR) payable - 105.05

As the amount of ESA(IR) is less than your ESA(CB) we will pay ESA(CB) of £109.30

HB will use the same basic calculations.

Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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ESA reassessment feeling overwhelmed. 3 weeks 4 days ago #172970

Hi Gordon,

Thank you very much for explaining this to me. I was still a bit confused, but when I contacted the DWP, they said that she was assessed for IR and CB. However, when they calculated she would be £4 and change better off on CB and that’s why they changed it. According to them, she should’ve got CB in the first place, they also gave her an arrears payment. She is still in the support group as well.

Of course, this now puts her just over the £125 threshold, so at the moment I am trying to help her with things like HC1 form and update the council with proof of household income.

Also, in answer to your other questions, they have been no increase in private pension and it is new because she inherited it when my dad passed away 3 years ago.

Thank you for your help.
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The following user(s) said Thank You: gma001, Gordon

ESA reassessment feeling overwhelmed. 3 weeks 4 days ago #172975

Sorry, I forgot to add, what do we do about tax, please? I did a rough calculation and private pension comes to around £1,000 annually, her CB-ESA benefit £5,700 annually (all rough calculations). The arrears they paid were also around £1,300. The DWP did say they sent out a P60 between April and May. But, do we have to pay tax directly? This bit I’m still confused on.

Thank you.
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ESA reassessment feeling overwhelmed. 3 weeks 4 days ago #172982

student2007 wrote:
Sorry, I forgot to add, what do we do about tax, please? I did a rough calculation and private pension comes to around £1,000 annually, her CB-ESA benefit £5,700 annually (all rough calculations). The arrears they paid were also around £1,300. The DWP did say they sent out a P60 between April and May. But, do we have to pay tax directly? This bit I’m still confused on.

Thank you.

DWP do not deduct tax, you will probably have to fill in a self-assessment form.
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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ESA reassessment feeling overwhelmed. 3 weeks 3 days ago #173079

Mrs Hurtyback wrote:
student2007 wrote:
Sorry, I forgot to add, what do we do about tax, please? I did a rough calculation and private pension comes to around £1,000 annually, her CB-ESA benefit £5,700 annually (all rough calculations). The arrears they paid were also around £1,300. The DWP did say they sent out a P60 between April and May. But, do we have to pay tax directly? This bit I’m still confused on.

Thank you.

DWP do not deduct tax, you will probably have to fill in a self-assessment form.

Thank you for your reply. Is this something the tax people will contact us directly about? Or do we have to get a specific form? Do you have any guides that cover tax for CB-ESA, please?
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Moderators: bro58, Gordon, Mrs Hurtyback, shelam
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