ESA and Small Pension Pot

shelts

HMG have recently announced that small pension pots are to be paid out as lumps sums, and my wife will be given a sum of £21k minus tax. We have read that savings over 16k will affect her ESA payments. Does it count as all hers if it goes into a joint account? Her ESA is contributions based.


We are not sure what to do as the money has been earmarked for adaptations needed for the house as we can't get Disabled Facilities Grant from council. According to DWP website, they will still count the lump sum as savings despite the fact we will be using it for those changes.


My wife is adamant she wants to tell DWP about the windfall, but is obviously concerned about long term problems with ESA in the future.
Any advice will be taken gratefully.

Londonsu

Is she on cont based or income based ESA, do you get an income or a pension

shelts

She's on contributions based. I get an Armed Forces pension and work one day a week for National Probation Service. She gets ESA and DLA

densol_2

If its definitely contribution based then savings make NO difference and no difference to the DLA either.