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partial medical retirement+esa so many opinions!

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5 years 6 months ago #219725 by hinglis
i an 40 living in Edinburgh and have been awarded partial medical retirement of 8k a year and 20k lump. If I am to go by today it would seem I will be worse off accepting my pension as would be no longer eligible for esa and the associated council tax reduction etc. I live alone and still have 120k mortgage. i am on the highest rate of PIP but will be reassessed next year. i get no housing or carers and owe family thousands. the grueling process of being awarded partial medical retirement has made things worse! it will be eaten up if replaces esa and obviously will be drained in a couple of years and nothing for old age.

Some of the answers face to face, over the phone are as follows-
• The thresholds for ESA (Employment and Support Allowance) are 16k savings and 6k income... this is the only ‘fact’ shared by all
The points making things impossible to decide are-
• You will no longer be able to claim ESA as the figures are over the threshold for both income and savings
• The lump sum cannot be included as savings as is a pension
• The lump sum will not be included as ‘gifting’ to my mum in leu of cost for boiler, bed,medical therapies, replace car..
• It is legal to gift to my mother to enable her to move house into Edinburgh to support me as the sale price of her flat is not enough to buy in Edinburgh
• From the ‘income’ of my pension it will be deducted from esa £ for £
• From the ‘income’ of my pension it will be deducted from esa 50p for each £
• Pension will not be taken in any form as a Notional income until I each an age where I would be entitled to Pension Credits
• Backdated accrued holiday pay will also be deducted
• The lump sum can be directly invested into ISA or private pension and cant be deducted.....

Are any of these correct? even the dwp direct have given different advise with each adviser all saying the last one was wrong! please help!

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5 years 6 months ago #219737 by Gordon
hinglis

The rules are different depending on whether you are receiving Income Related ESA, Contribution Based ESA.

For Income Related ESA the savings rule is

Asset and savings rule for ESA(IR)

Any pension income will be deducted £ for £ from any ESA(IR) you are receiving.

For ESA(CB) any lump sum should not affect your ESA but for any regular pension income, there is an £85 per week disregard followed by a £1 deduction or every £ of pension in excess of the £85.

Gifting money to your mother may be considered as Deprivation of Capital and you could be considered as still being possession of the money, the rules on this are quite grey and ultimately at the discretion of a Decision Maker.

Gordon

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