IB then OLD STYLE ESA(C) - In Support Group - Pension Deduction

Hopefully someone can help with this.

My partner has been in receipt of Old Style ESA(C) for some years (before that he was on incapacity benefit since the mid 90's) and when his company pension started 3-4 years ago we advised the DWP who reduced the amount of ESA he get as his company pension was more than £85 a week. We knew this would happen.

Each year we would advise the new amount of his company pension and the DWP would make a calculation and advise us of the new amount of his Old Style ESA(C).

Late last year, out of the blue, he had a letter from the DWP telling him they had done a review using information from HMRC to check that the amount he receives each week from his company pension is correct.

In the letter they said they had ‘looked at his case and were changing how much ESA he would get’. The weekly pension amount he receives was provided on the letter and was correct and the same as we had advised in April of 2022 so no problem there.

This weekly amount was well in excess of the allowed £85 but my partners ESA was being adjusted back to the full amount with no deduction for receiving more than £85 per week pension. We found this odd but thought they must know what they are doing.

In April, this year’s increase in his company pension came and as normal we notified the DWP immediately, telling them the new figures.

After chasing up as weeks had gone by we then had a letter saying my partners ESA is changing because of ‘a change of money coming in’ but the amount shown on the letter is again the full weekly amount with nothing taken off for having a company pension over £85 a week.

I remember reading a post about full disregard of pension if on Incapacity Benefit before 2001, which he was.

Is this the reason the DWP have, after receiving the HMRC figures, ignored any company pension over £85 a week he receives?

From reading the Forum, it seems people state the current DWP staff do not really understand the disregard rules.

Also I have read contradictory posts about when a pension would have needed to have begun for the disregard rule to apply.

Who am I to question the official letters they have sent us, they obviously know what they are doing and we have always done what we are supposed to, but I find this very odd.

Any thoughts please? Thank you

Thank you Gordon, I appreciate your help.

So does this apply even though he wasn’t in receipt of his pension until well after his IB changed to ESA(C). He’s only been in receipt of his pension for 3 years.

If this is this case could we get the money back that was deducted and shouldn’t have been because his company pension hadn’t been disregarded when it should have?

Thanks again

Hi Gordon I’m really interested in what you have been saying I was on IB in 1997 and got my small early medical retirement pension. At the time my pension was disregarded. Then in 2012 was transferred to ESA (contribution) after 365 days it was stopping and going over to IR ESA I was put into the support group so apparently get CB ESA and IR ESA. A number of years later I was called into JoB centre for an interview under caution to discuss my OCC pension and not telling them I was getting about £320 a week pension and why didn’t i tell them I didn’t know what i had done wrong so took a welfare adviser with me as was terrified during this interview only to realise i only get £320 a month so it was under £85 a week. Received a letter no further action.

A number of years later my money went down a hell of a lot so I phoned and they said they were taking all my pension off me so i just accepted that I wasn’t aware of this disreguardment. Now Ive received a letter saying I’ve not told them over the years my pension has gone up so deduction will be 23.28 a week I only get £97 a week so even if they use the £85 guide im only £12 over therefore it should be reduced by £6. Now looking into it I have realised I was on IB before 2001 change and they should have disregarded my pension in full.

Am I right in what im thinking should I ring them do you know the legal precedent quotes I could use.

Thank you in advance