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Can taking my works pension early affect my Incapacity Benefit
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mardigrasgirl
Posts: 29 Forumite
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.
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.
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Comments
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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.0 -
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..ck0 -
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;)I like the thanks button, but ,please, an I agree button.
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed0 -
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."0 -
Thank you to everyone who took the time to reply. Its very much appreciated.0
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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.0 -
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....0 -
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??I like the thanks button, but ,please, an I agree button.
Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)
Always expect the unexpected:eek:and then you won't be dissapointed0
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