We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Pension Income and Incapacity Benefit -how does it work?
Saversue
Posts: 1,918 Forumite
Can anyone explain page 4 of the Booklet BF140 that came with my Increase in Incapacity Benefits Letter.
I get Incapacity Benefit £91.40 plus age addition £5.80 from 15th April, as expected.
However the booklet says "we may take any pension income over £85.00 a week into account when we work out how much money you are due".....
I currently get a pension due to early retirement due to ill- health and pay tax on my Incapacity Benefit, which is taken off from my Pension.
Are they saying that Incapacity Benefit will be reduced/lost if you also get a pension and if so on what scale?
These rules apply to anyone getting Incapacity Benefit after 7th April 2001.
I get Incapacity Benefit £91.40 plus age addition £5.80 from 15th April, as expected.
However the booklet says "we may take any pension income over £85.00 a week into account when we work out how much money you are due".....
I currently get a pension due to early retirement due to ill- health and pay tax on my Incapacity Benefit, which is taken off from my Pension.
Are they saying that Incapacity Benefit will be reduced/lost if you also get a pension and if so on what scale?
These rules apply to anyone getting Incapacity Benefit after 7th April 2001.
0
Comments
-
Can anyone explain page 4 of the Booklet BF140 that came with my Increase in Incapacity Benefits Letter.
I get Incapacity Benefit £91.40 plus age addition £5.80 from 15th April, as expected.
However the booklet says "we may take any pension income over £85.00 a week into account when we work out how much money you are due".....
I currently get a pension due to early retirement due to ill- health and pay tax on my Incapacity Benefit, which is taken off from my Pension.
Are they saying that Incapacity Benefit will be reduced/lost if you also get a pension and if so on what scale?
These rules apply to anyone getting Incapacity Benefit after 7th April 2001.
Yes there will be a reduction in IB if you have a pension over £85 per week by 50p in the £.
This does not apply if you receive DLA higher rate care.
Further details here: http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/IncapacityBenefit/DG_100160820 -
It's a deduction of 50p in the £ for every £ over £85.
So if your pension is £100 they take £7.50 from your IB.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
Thank Healy and seven-day-weekend. Just checked the website AND checked my starting date; 22nd March 2001, so for once in my life I started claiming something just in-time - by 16 days! What a difference a day (16 days) makes!0
-
It's nice to have good news like that!(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards