Due to ill health I had to retire from NHS Sept 2021. I applied for ESA prior to receiving my pension. I am now in receipt of support ESA and full PIP I recently received a letter stating that as the weekly pension I receive is above £85 a corresponding deduction will be made. I phoned ESA to make sure all was in order and the lady I spoke to reassured me. What I didn't discuss was the fact I also took a lump sum from my pension which takes my savings above £16,000. I read on Gov.UK ESA site I can still receive ESA even if this is the case. I am confused as an answered question in this forum says the opposite. Which is correct?
It all depends on the answer you give when you are asked, what type of ESA do you receive?
If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.
If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA. You have to have savings less than £16k to be eligible to claim IR ESA.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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