New Style ESA is an contribution based ESA Flat rate benefit based on NI contributions paid over the previous 2 years (No income and savings test for contributory ESA) However occupational or personal pension is taken into account and ESA award reduced. (Can do permitted work and earn up to £152 per week)
My question is this - If contribution based on NI contributions No income or savings test Pension is income - so why is pension taken into account? Why is pension income different from general income and savings? Is this not classed as discriminatory?
The first thing I would say is that you cannot claim CB ESA and State pension.
If you receive Contribution Based ESA only then a lump sum payment will not affect your ESA although further ones might, if you take a regular payment then there is an £85/week disregard followed by £1/week deduction for every £2 in excess of the £85.
If you receive Income Related ESA in part or in whole then any lump sum will be treated as capital, see the following
