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Income Related ESA and pension
- deb.hughes
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5 years 7 months ago #217106 by deb.hughes
Income Related ESA and pension was created by deb.hughes
Hi, first time on this site. Looking for some advice as I will be 55 next year and want to take a small lump sum from my pension. I'm on means tested ESA in the Support Group with no savings and no capital. I just want to check as to what I can take without it affecting my benefits. I have looked at the guidance and it indicates that if I don't have more than 6000 in my account that will be OK. Can I take 8000 which I want to use to pay off a loan which I'm paying off currently which has a high interest rate? Thanks for your help in advance.
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- Gordon
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5 years 7 months ago #217107 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Income Related ESA and pension
Deb
Welcome to the forum, you might want to have a look at the following FAQ which explains where everything is
Welcome to Benefits and Work
I'm afraid I cannot give you a definitive answer.
Taking more than $8000 will mean that your ESA will be reduced at the rate of £1/week for every £250 in excess of £6000.
Paying off a loan early may be considered as Deprivation of Capital, the Decision is at the discretion of a DWP Decision Maker, they may accept the high interest rate as good reason for the early clearing of the debt but if they don't then you will be considered as still being in possession of the £8000 and deductions will continue.
My best advice is for you to get face to face advice from a trained Welfare Rights advisor, they will have a better idea of how the DWP will view the money and more importantly can act on your behalf with the DWP. Do an internet search for "welfare advice" with your postcode, town or county.
Gordon
Welcome to the forum, you might want to have a look at the following FAQ which explains where everything is
Welcome to Benefits and Work
I'm afraid I cannot give you a definitive answer.
Taking more than $8000 will mean that your ESA will be reduced at the rate of £1/week for every £250 in excess of £6000.
Paying off a loan early may be considered as Deprivation of Capital, the Decision is at the discretion of a DWP Decision Maker, they may accept the high interest rate as good reason for the early clearing of the debt but if they don't then you will be considered as still being in possession of the £8000 and deductions will continue.
My best advice is for you to get face to face advice from a trained Welfare Rights advisor, they will have a better idea of how the DWP will view the money and more importantly can act on your behalf with the DWP. Do an internet search for "welfare advice" with your postcode, town or county.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: deb.hughes
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