Will pension income affect ESA?

Chris_P_2

Hwllo, question on behalf of a friend:

She has been unable to work for over a year now (serious medical condition which limited mobility), has debts as is living off a pathetic support from the council. she recnetly had an ESA assesment but hasnt heard back yet what she is entitled to.

she has an old pension which she is baout to take her 25% tax free cash from (which will be used to clear the debts), and then the annuity will be in the region of £1100 per year.

Will this pension affect her ESA? And if she took her tax free cash without taking an income (think this is drawdown on 0% income), will the fact that she is ABLE to receive the income affect her ESA?

thanks

sunnyone

Chris_P wrote: »

Hwllo, question on behalf of a friend:

She has been unable to work for over a year now (serious medical condition which limited mobility), has debts as is living off a pathetic support from the council. she recnetly had an ESA assesment but hasnt heard back yet what she is entitled to.

she has an old pension which she is baout to take her 25% tax free cash from (which will be used to clear the debts), and then the annuity will be in the region of £1100 per year.

Will this pension affect her ESA? And if she took her tax free cash without taking an income (think this is drawdown on 0% income), will the fact that she is ABLE to receive the income affect her ESA?

thanks

At that annuity it wont affect her ESA, if it was more than £85pw it would with 50% of the amount over £85 reducution of her ESA.

So 50p per pound over £85 would be the reduction if her pension was over £85.

Chorlie

Chris_P wrote: »

Hwllo, question on behalf of a friend:

She has been unable to work for over a year now (serious medical condition which limited mobility), has debts as is living off a pathetic support from the council. she recnetly had an ESA assesment but hasnt heard back yet what she is entitled to.

she has an old pension which she is baout to take her 25% tax free cash from (which will be used to clear the debts), and then the annuity will be in the region of £1100 per year.

Will this pension affect her ESA? And if she took her tax free cash without taking an income (think this is drawdown on 0% income), will the fact that she is ABLE to receive the income affect her ESA?

thanks

If she is applying for Income Based ESA the pension will effect it.


From the 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."