Can taking my works pension early affect my Incapacity Benefit

mardigrasgirl

Can anyone tell me if my Incapacity Benefit would be reduced in any way if I chose to receive my works pension? (I've not worked for a number of years through ill health).

I receive mobility and care DLA and Incapacity Benefit. I've been given 2 sets of figures from the Pensions Office, £3.150.00 or £3,832 per year (each figure depends on whether or not I take the higher or lower lump sum).

There is a lot to consider, but my first question is regarding my Incapacity Benefit.

Thanks for reading. I look forward to a reply.

sunnyone

mardigrasgirl wrote: »

Can anyone tell me if my Incapacity Benefit would be reduced in any way if I chose to receive my works pension? (I've not worked for a number of years through ill health).

I receive mobility and care DLA and Incapacity Benefit. I've been given 2 sets of figures from the Pensions Office, £3.150.00 or £3,832 per year (each figure depends on whether or not I take the higher or lower lump sum).

There is a lot to consider, but my first question is regarding my Incapacity Benefit.

Thanks for reading. I look forward to a reply.

Pre '95 all pension were ignored when you claimed IVB and since then its only been pensions over £85 that have affect IB BUT we must all consider what changes are coming for us all and I dont know what will happen then.

citykid5

hi.anything over £85 pw is tacken into account,looking at your figures it would not effect your i/b but you would still need to inform them.
i'm currently on i/b with a pension..ck

cyclonebri1

For every £ over £85 you surrender 50p, hope you can decipher that;););)

Or the balance over £85 is halved, god knows what the future?collaboration has in store:A:A;)

JS477

I recall when this was first debated, when Alastair Darling was S of S at the DWP the original figure was £50, however following an outcry and various demonstrations of the attacks on the disabled by the new labour government that nice Mr. Bliar agreed to increase it to £85.

It's interesting to note that the Hansard report does say "that the £50 threshold will be kept under review to ensure that it remains at a fair and reasonable level."

mardigrasgirl

Thank you to everyone who took the time to reply. Its very much appreciated.

Chorlie

I'm on ESA and get an ill health pension, if IB is the same then if your pension is over £85 per week you will loose 50p of your IB for every £1 over the £85.

Also consider the lump sum, if you have savings (lump sum) then this could effect your benefits (IB is changing to ESA).

£3832 works out less the £85 a week, but with this government the rules my all change again next week.

Chorlie

Just found this on Direct Gov Web Site:

Quote
"Pension income rules

If you receive contribution-based Employment and Support Allowance and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.

The excess is the difference between £85 and the actual pension income. For example, for a pension income of £100, the excess is £15. The amount of Employment and Support Allowance payable is reduced by half of that, which is £7.50.

If you receive income-related Employment and Support Allowance, any pension income you have will be taken into account, regardless of the amount."



If they do move you from IB to ESA, which I think they have started doing, the above will effect you....

cyclonebri1

Chorlie wrote: »

Just found this on Direct Gov Web Site:

Quote
"Pension income rules

If you receive contribution-based Employment and Support Allowance and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.

The excess is the difference between £85 and the actual pension income. For example, for a pension income of £100, the excess is £15. The amount of Employment and Support Allowance payable is reduced by half of that, which is £7.50.

If you receive income-related Employment and Support Allowance, any pension income you have will be taken into account, regardless of the amount."



If they do move you from IB to ESA, which I think they have started doing, the above will effect you....

And for the 1st year you could be better off??