- Posts: 77
Employment Support Allowance question
- Ariene
- Topic Author
I have been told I can claim this, and that the pension income is taken into accountwhen calculating how much I will be paid and that on top of that the amount I will be paid is subject to Tax. is this correct.
Silly question but very basic for me as I have had to fumble around in the dark since my disability has rendered me unable to work.
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- pete17971
I have applied for NI Contribution ESA as I have been found unable to work and receive 2 small occupational pensions paid due to ill health and found unable to work.
I have been told I can claim this, and that the pension income is taken into accountwhen calculating how much I will be paid and that on top of that the amount I will be paid is subject to Tax. is this correct.
Silly question but very basic for me as I have had to fumble around in the dark since my disability has rendered me unable to work.
Hi,
Whilst we cannot give individual advice, nor taxation advice, generally one can claim Contributory ESA and receive an Occupational Pension (or more than one). However if the pensions together add up to over £85 per week, then deductions will be made to ones ESA at a rate of 50p per pound pension over £85 in order to offset the pension. Hence the more pension one receives, the less ESA one gets.
Edit to add, some Incapacity Benefit claimants may have rights from a number of years ago when such pensions were not taken into consideration.
Pete
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- Ariene
- Topic Author
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- lester
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- Gordon
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- Posts: 51288
The easiest way to explain it is, if your pension is currently disregarded under IB, then it will continue to be under ESA, whilst you maintain the claim for ESA(CB) or until 2020, whichever is later.What are these rights? I did not start to receive my pension untill 13th October 2001, will these rights have any baring on me?
If your pension income is not disregarded under IB then it will not be disregarded under ESA.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- lester
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- Posts: 77
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