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RE NEW ESA RULES REGARDING PENISION/SAVINGS ETC

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13 years 1 month ago #46971 by skyblue4u
I am seeing someone from the local mind office and i have asked recently about these forthcoming changes regards peoples pension and savings and that ESA will be reduced if you have a certain amount of income or savings etc.

Can you please clarify the situation as she seems not to know about these changes and seems not to know about them even though she is Minds benifit advisor etc.

Do these changes still take place even if you are place in the support group.
If your pension is a ill health one does that matter and what if your wife does not work as she is your carer?

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13 years 1 month ago #46987 by Gordon
skyblue

Wow, how to explain this, so many aspects :)

Contibution Based ESA relates solely to the claimant, it is taxable and has a disregard of £85 for any pension income, above this, the ESA is reduced at £1 for every £2 of pension income.

Income Related ESA relates to the claimant and partner, it is not taxable. All "countable" income from the claimant and their partner is deducted, in addition there is a means test of not more than £16,000 in assets (excluding your primary residence).

Legislation, expected to be en-acted in the next month, will restrict the receipt of ESA(CB) to one year for members of the WRAG, not the Support Group, after this time they will be eligible for ESA(IR), subject to the means test.

Hope this explains it.

Gordon

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

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  • waltwhitman
13 years 1 month ago #46999 by waltwhitman
Replied by waltwhitman on topic Re:RE NEW ESA RULES REGARDING PENISION/SAVINGS ETC
If you have an Occupational Pension that began before 2001 is it still disregarded as income or have they changed the rules? I know they're still dithering about paying tax on pensions for those whose claim began sometime in the 90's but I haven't seen much about the pre-2001 issue. Any advice much appreciated.
Thanks,
WW

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13 years 1 month ago - 13 years 1 month ago #47005 by Gareth56
Gordon wrote:

Legislation, expected to be en-acted in the next month, will restrict the receipt of ESA(CB) to one year for members of the WRAG, not the Support Group, after this time they will be eligible for ESA(IR), subject to the means test.


It seems that Liam Byrne would like to see a two year limit placed on CB ESA if you're placed in the WRAG.

"But Byrne is prepared to accept more than three-quarters of £3.4bn in welfare savings next year in two areas. First, principled savings designed to increase incentives for work – Labour will accept limiting ESA payments, replacement for Incapacity Benefit, but Byrne wants it limited after two years, rather than one. Second, burden-sharing savings which spread the making of savings around the system – including accepting indexation of welfare payments from RPI to CPI, though for three years only, and not permanently."

Source:- Here

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 13 years 1 month ago by Gareth56.

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13 years 1 month ago #47006 by Gordon
waltwhitman wrote:

If you have an Occupational Pension that began before 2001 is it still disregarded as income or have they changed the rules? I know they're still dithering about paying tax on pensions for those whose claim began sometime in the 90's but I haven't seen much about the pre-2001 issue. Any advice much appreciated.
Thanks,
WW

I've found mention of this with regard to IB, but no equivalent in the ESA regulations.

Gordon

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

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13 years 1 month ago #47014 by WSK
This has always been a bone of contention for me. Thanks to my poor health and my husbands redundancies, we have had an interest only mortgage for a good number of years as we cannot afford the full repayment. But, because of this, we have to hold and prove a suitable "repayment vehicle" to ensure we can pay off the mortgage and cover any negative equity when we sell. This means between my husband and I, we hold ISA accounts that would put us over the threshold. We cannot access this money as it has to stay there in order to meet the terms of our mortgage. I have explained this a couple of times to my DWP office who agreed that it was an unfair situation. So, for me - it is even more vital that I win my appeal to be put back into the Support Group and can only hope that I remain there if my health does not improve when this rule of only one year on contribution based ESA for WRAG comes in.

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