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Can I take a pension lump sum while receiving ESA?

  • Trevor Goodenough
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8 years 6 months ago #171944 by Trevor Goodenough
Can I take a pension lump sum while receiving ESA? was created by Trevor Goodenough
Hi.
I am receipt of ESA and have two small pensions.
Today I received a letter to say I cold take a "taxed" lump sum from one of my pensions as it was a "trivial" amount (£9414 less tax) This would take my savings to £10,500 approx. Is this allowed?
I am in the support group and also receive PIP.
Thank you
Trevor

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8 years 6 months ago #171953 by Gordon
T

Welcome to the forum.

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It depends on the type of ESA you receive. If you only receive Contribution Based ESA then your taking this money will not have an effect on your ESA, although any regular pension payment might.

If you are receiving Income Related ESA in whole or as a top-up to ESA(CB), then you need to notify the DWP about the payment as it will take your assets and savings to more £6000. See

Asset rule for ESA(IR)

Gordon

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

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