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TOPIC: ESA permitted savings

ESA permitted savings 2 months 2 weeks ago #198027

Hi, wondering if anyone can help? I have been unable to find an answer to the following question on the internet. After getting on to the contribution-based ESA, Support Group with the help of the information on this website, my husband has also managed to claim a work pension he has been denied for over a decade. He is being asked if he wants to take a lump sum as part of his pension payout, but I cannot find the rules on savings in relation to contribution-based ESA, Support Group in Northern Ireland. I am also wondering does the amount in any account matter, or just if the money is in a savings account. Many thanks for your help.

Keep fighting everyone, it is exhausting but you can get there!

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ESA permitted savings 2 months 2 weeks ago #198042

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Claire

Providing you are only receiving Contribution Based ESA, then it does not matter what he does with his pension.as you savings do not effect your ESA(CB) and any pension income is in his name only.

For your information, when the DWP refer to savings they mean all of the households assets, savings and cash, whatever the account and irrelevant of it being in your name or your husband's.

Gordon
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ESA permitted savings 2 months 2 weeks ago #198053

I am not sure whether the ESA claim is in your name or your husband's?

If it is in your name then as Gordon says, the pension income will not affect the claim in any way.

If the ESA claim is your husbands then DWP need to be informed about the pension and ESA will be reduced by 50p for every £1 pension over £85 per week.
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ESA permitted savings 2 months 2 weeks ago #198060

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Claire

Thanks to Mrs H for her additional comments.

To explain, If the ESA is your husbands claim then a one off payment will not effect his ESA(CB) as it will be treated as capital, if it is taken as multiple payments or a monthly payment (for example), then it may be treated as income and deductions then may be made depending on his circumstances.

Gordon
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ESA permitted savings 2 months 2 weeks ago #198068

Sorry to be vague - both the ESA and the pension are my husband's. I'm aware of the decrease in contribution based ESA when monthly pension payments reach £85 per week, but had been concerned about whether a lump sum pension payout would also affect his contribution based ESA. Sounds like we are good to celebrate - it's been a long decade! :silly:

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ESA permitted savings 2 months 2 weeks ago #198079

Just to reiterate what Gordon and Mrs H has said; providing your husband's ESA is Contribution Based then it doesn't matter how large the pension lump sum is, it will not affect his CB ESA. Only a regular income like a monthly occupational pension will affect CB ESA in that any pension income over £85 a week will reduce CB ESA by 50p in the £.

So:-
Any one off pension lump sum amount = No effect on CB ESA.

Regular income from something like a monthly occupational pension = deductions as stated above.

Hope that helps.
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