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TOPIC: ESA CB backpay and taking pension lump sum query

ESA CB backpay and taking pension lump sum query 2 months 2 weeks ago #196580

Hi Gordon saw related thread re pension lump sum.

I am on CB ESA now my partner on IR ESA. We claim as a couple. You kindly helped the other day and now have had some backpay. Waiting for rest !! Thank u.

A couple of questions then :
Why when they give me the £ 109 a week do they take that all off my partner. - they said about not being paid same twice ?? He's already down on living allowance of 73.10 bit as we get as couple £114. So why then is all the 109 taken too this means in affect one of us isn't getting the 36.55 support group element doesn't it. ?? Can't work out ??

Secondly
What affect does me taking a lump sum from pension of £4K approx have on my CB ESA and partners IR esa. Told 25% tax free and balance will be taxed @ usual 20% base or emergency tax. If DWP don't tax benefits then I've not paid any tax all last year or this year so should get tax refund too ?
However concerned as will this count as income or capital. Will money be taken off mine or partners benefits. ??
Partner has about 3k savings I don't have any but will have about £2k left to save as other from £4K going on paying off debts and car repairs. So we will have under the £6k savings which as I read if 5800 or less don't have to notify ??

Worried re the wording seen ' any pension money re deemed still to have if seen to spend or hide ?? Or gist of !

Looking at maybe coming off esa in future but again unclear as to how will affect partners ESA IR. says on various pages i can work up to 26 hours without any money being taken off him ? Assume He would have to go back to single person claim so not 114 but back to 73.10?? Too. ?

Sorry so long if can advise be very helpful as all so confusing and making me anxious.

Regards

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ESA CB backpay and taking pension lump sum query 2 months 2 weeks ago #196610

Ambo

Your ESA(CB) is treated as income as far as your partner's ESA in concerned and is therefore deducted. As you are a couple it is your total earnings and savings that are considered.

Providing you take the payment as a one-off then it should not effect your ESA(CB), it will be treated as capital (savings) in regard your partners ESA(IR). You post suggests that you would initially exceed the £6000 limit, be careful of paying your debts, the DWP can (they may not) treat this as Deprivation of CapitaLand treat you as being in possession of all of at least some of the money.

I'm afraid there are no clear rules on this, so I can't say what is acceptable and what is not, paying your mortgage early probably would be an issue, but paying off a credit card probably would not. Make sure that you keep receipts for everything that you spend it on.

I'm afraid, if you have not paid tax then you will not get a refund.

If you close your ESA claim then you can work up to but not including 24 hours a week, your partner's ESA(IR) will go back up to the full rate, but then will again be reduced by your earnings, I believe there is a £20/week disregard followed by £ for £ reduction.

Gordon

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

ESA CB backpay and taking pension lump sum query 2 months 2 weeks ago #196656

Thank you Gordon so does this mean with regard to the pension that I need to phone them up before I apply to get it all or when I've got it as obviously I don't know how much I'm going to get because 25% of it is tax-free and the rest of it is taxed at 20% as far as I'm aware. It says our responsibility to tell them of money coming in but again if under 5800 threshold in total savings it dies say u don't have to inform them. We did tell them that Paul had savings when we applied as a couple so didn't lie. Just now most of his gone too !

On other note ust doesn't seem fair as all we trying to do is survive and have quality of life. But every time we get any money in they take it off us !!

My pension relates to when I wasn't eith partner so shouldn't come into equation ?? I need to sort out car and money I owe ??

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ESA CB backpay and taking pension lump sum query 2 months 2 weeks ago #196668

ambo

You don't have to tell them in advance of taking the payment but if your savings are over £6000 after you take the payment then you need to inform the DWP. So I would wait until you have the amount before you make any decisions.

To be clear I'm not saying that your spending the money will be treated as deprivation, just that it can and you need to consider this. Having over £6000 does not stop your ESA but there will be a deduction.

Asset rule for ESA(IR)

As to your other points. I'm afraid it is the nature of the benefit system.

Gordon
The following user(s) said Thank You: ambo

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ESA CB backpay and taking pension lump sum query 2 months 1 week ago #196683

Thank you Gordon for all your help. Spoke to someone at Hull benefits last week she explained all the backpay etc owed. Ive today received this am shocked but pleased at amount. She advised it was def correct. After all hassle etc and waiting and stress gone thru it's defo time to relax a bit.

I've not gone forward with pension lump sum yet. Thinking about it still.

The backpay money I have received does this count as part of your savings too ?? It can I enjoy and spend as I wish.

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ESA CB backpay and taking pension lump sum query 2 months 1 week ago #196695

ambo wrote: The backpay money I have received does this count as part of your savings too ?? It can I enjoy and spend as I wish.


It depends on the amount and when it dates from. Large back payments can be disregarded for 52 weeks or even longer, but you will have to contact the DWP to find out whether this has been done, otherwise it will be considered as part of your savings.

Gordon

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Moderators: bro58GordonMrs Hurtyback