MIGRATION FROM INCOME RELATED ESA TO UNIVERSAL CREDIT

Good afternoon
I am new to the website as a member, although I have received the newsletters for some time.
I have one question initially, if anyone may be able to help me.
a) I am 65 years of age and have been receiving the old-style Income Related ESA since 2014, and Personal Independence Payment since 2021.
b) The Income Related ESA, the award is as follows: Living Expenses £92.05 - Severely Disabled Extra Award £82.90 - Disability Income Guarantee £21.20 - Extra Money Support Group £48.50 - Total £244.65.
c) The PIP award is as follows: Daily Living Amount £110.40 - Mobility £77.05 - Total £184.30
I am on the highest / enhanced level of award in both benefits.
I was awarded PIP in August 2021 and the period awarded is 10 years. The next review will be August / September 2031.
d) I am only eligible to receive my State Pension from 09/11/2026.
My Question:
I received a letter re: Universal Credit Migration Notice on the 27th June 2025.
The final date to submit a claim for Universal Credit is the 28th September 2025.
* I understand that the 'Transitional Protection' will equal the benefit of the Income Related ESA. Is this correct?
** I have a Private Pension that became live when I had my 65th Birthday on the 9th July. I will receive just over £171.00 per month on the private pension. Is this a form of income that is exempt from any deductions from Universal Credit, or will the maximum award of Universal Credit be reduced, by £171.00 a month?
I apologise if this has been lengthy however, I wish to ensure you have all the facts.
*** Finally, throwinng a curve ball in to the mix; I worked all my life, up to General Management level in both Hospitality and Leisure & Tourism. I have conditions that resulted in the awards of ESA and PIP, as above.
I have never taken my benefits for granted, and never will.
I simply wish to determine whether the private pension of just over £171.00 will be classed as an income stream and the UC will be reduced. Or, if the privqte pension is recognised that I paid in to it during my career and the purpose was to have a small safety net. I wonder if the benefits would be reduced due to a private pension, why bother saving at all during my career.
I thank you all in anticipation of the above.
Stay safe. Chris

Morning. Pensions are taken off UC £ for £. The same was true of ESA.
It’s annoying, but nonetheless true.
Moving forward, your work pension may well take you over the tax threshold when you start receiving your state pension.
Another thing to look forward to..
Your PIP will remain unaffected as it is not means tested.

Hi Gary
Thank you so much for your advice. It is much appreciated.
I have contacted one of the Welfare Rights Organisations.
Thank you again
KrisB

KrisB wrote:

Good afternoon I am new to the website as a member, although I have received the newsletters for some time. I have one question initially, if anyone may be able to help me. a) I am 65 years of age and have been receiving the old-style Income Related ESA since 2014, and Personal Independence Payment since 2021. b) The Income Related ESA, the award is as follows: Living Expenses £92.05 - Severely Disabled Extra Award £82.90 - Disability Income Guarantee £21.20 - Extra Money Support Group £48.50 - Total £244.65. c) The PIP award is as follows: Daily Living Amount £110.40 - Mobility £77.05 - Total £184.30 I am on the highest / enhanced level of award in both benefits. I was awarded PIP in August 2021 and the period awarded is 10 years. The next review will be August / September 2031. d) I am only eligible to receive my State Pension from 09/11/2026. My Question: I received a letter re: Universal Credit Migration Notice on the 27th June 2025. The final date to submit a claim for Universal Credit is the 28th September 2025. * I understand that the 'Transitional Protection' will equal the benefit of the Income Related ESA. Is this correct? ** I have a Private Pension that became live when I had my 65th Birthday on the 9th July. I will receive just over £171.00 per month on the private pension. Is this a form of income that is exempt from any deductions from Universal Credit, or will the maximum award of Universal Credit be reduced, by £171.00 a month? I apologise if this has been lengthy however, I wish to ensure you have all the facts. *** Finally, throwinng a curve ball in to the mix; I worked all my life, up to General Management level in both Hospitality and Leisure & Tourism. I have conditions that resulted in the awards of ESA and PIP, as above. I have never taken my benefits for granted, and never will. I simply wish to determine whether the private pension of just over £171.00 will be classed as an income stream and the UC will be reduced. Or, if the privqte pension is recognised that I paid in to it during my career and the purpose was to have a small safety net. I wonder if the benefits would be reduced due to a private pension, why bother saving at all during my career. I thank you all in anticipation of the above. Stay safe. Chris

Hi Chris

Yes, your pension will be deducted in full from your Universal Credit as it is classed as income and UC is a means tested benefit.
.If you were in receipt of New Style ESA ONLY then it would be affected as Gary has outlined above.

I previously received a combination of Income Related and Contributions based ESA (Support Group) and my occupational pension (currently £376.000 monthly) was deducted £ for £.

I have recently migrated (managed) to New Style ESA AND a UC top up so my occupational pension is still deducted £ for £ because I receive a means tested benefit i.e. UC.

I totally understand your frustration of paying into a pension scheme when working as I also feel the same.

Regards
soulgal