Advice on means tested contribution based ESA

Tabby026

Hi I am on contributionary based ESA (support group) since June 2013. I also have an ill health retirement pension from my previous employer, since Feb 2012. At present my ESA is halved due to my private pension, which I also pay tax on, however I have read somewhere that if you are in receipt of DLA (high care component), which I am on, then the ESA contribution based (support group) is not means tested, is this correct?

Also the DWP have written to me today asking for my pension increase amount for the new tax year. I am assuming I give them the gross figure, which seems a bit stupid because after tax I have less money.

I understand I am in a very fortunate position, however it seems the government want to take money at every angle from people.

rogerblack

What you have probably heard's origin is that after 12 months, those on contribution based ESA in the support group are not moved over onto means-tested ESA.

This however isn't why your ESA is reduced - it's due to your pension income.
So, unfortunatly, no, it's not correct - pension income is counted in the support group, or indeed if you have DLA.

margaretclare

I thought that DLA or AA were not means-tested nor taxable?

rogerblack

margaretclare wrote: »

I thought that DLA or AA were not means-tested nor taxable?

It's not.
But ESA is also in payment, which is means-tested.
(in this case, due to the pension income)

pmlindyloo

I wonder if you are thinking about people who were transferred from Incapacity Benefit to ESA?

If you were on IB and the high rate of DLA then your pension was ignored
for IB purposes.

When transferring from IB to contribution based ESA your pension continued to be ignored as you had transitional protection.

See here:

http://www.northlanarkshire.gov.uk/index.aspx?articleid=5169