IB migrated to ESA

Helpme1982

Hello

Can anyone offer any help on migrating from IB to ESA? My Dad has just been moved from IB (granted pre 6 April 2001) to ESA and has been put in the Work Related Activity Group (which I disagree with, but that's not the point!). He has pension income of £23,000 a year having been retired early with a good ill-health pension. Having looked into ESA, it appears that he will lose all right to it as a result of the 'pension income over £85' rule...is this deduction correct?? He was not affected by the change in IB when some people had theirs reduced due to pension income, because of the date he was awarded IB, so will he be exempt from this £85 rule which applies to ESA?

Thanks in advance for any help...

rogerblack

For the first year, he will be on ESA (contributory), which isn't means-tested.
Then he moves to ESA (income-based).
This is unless he's been put in the support group, in which case he continues on contributory.
Once he's on income based, it will be taken into account, and eliminate his entitlement. He could if he was under retirement age, continue to claim on a credits-only basis.

There is no other transitional protection for people with income, so if his condition remains unchanged (and the welfare reform bill passes) his entitlement to ESA will go away around this time next year.

Helpme1982

Thank you for your help, much appreciated.

jonliv

Contributory ESA customers and Incapacity Benefit customers who claimed after 2001 have
half the amount of any income from occupational pension over £85 per week deducted from
their contributory benefit. However Incapacity Benefit and Severe Disablement Allowance
customers who claimed benefit prior to 2001 or are entitled to higher rate care component of
DLA have any occupational pension fully disregarded. If, on migration to ESA, ESA rules are
applied to these customers, those with occupational pensions over £85 per week could see
a significant reduction in their benefit. Therefore to ensure that customers do not see a
reduction in their benefit on migration the occupational pensions disregard will be carried
forward into ESA for customers who currently have any occupational pension disregarded.
This will mean that there will be different rules for the treatment of occupational pension in
ESA until there are no customers with an occupational pension disregard remaining on ESA.
This will protect the level of benefit for up to 30,000 people.


I do believe there is an expectation that anyone in the ESA(C) WRAG will have this benefit withdraw after they have been on the benefit for a year which will be applied retrospectively from April 2012

So because he received IB prior to 2001 his benefit should be protected from the pension rules

jonliv

Sorry cross posted

Luck

Jono

And much better put Roger lol

Helpme1982

oh...I've just come across a page on the Directgov site which says that contribution based ESA is reduced for pension income over £85??

Confused.com!! Am I allowed to share a link to it?

Helpme1982

another cross post!! Thank you jonliv - can you tell me where you found that info though? I'm a bit worried because I was put onto the Directgov site and it didn't mention that?

jonliv

Here is a link to the IB migration rules and the transitional arrangements

http://www.legislation.gov.uk/uksi/2010/875/pdfs/uksiem_20100875_en.pdf

Paragraph 41 relates to your Dad

Helpme1982

Thank you both for your help :-)