Confused about pension I now receive

Beckham74x

Hi

I am on CB ESA and in the support group and have just started receiving a pension of £90 per week. My ESA has now been reduced by about £85 per week so now no better off for receiving this pension. I have benn medically retired early due to illness. Is this right that you lose the same amount off your ESA claim as what you receive in your weekly pension. Also I have had a lump sum does this also now affect my ESA amount? Very confused now. Thanks for any help in advance

pmlindyloo

Beckham74x wrote: »

Hi

I am on CB ESA and in the support group and have just started receiving a pension of £90 per week. My ESA has now been reduced by about £85 per week so now no better off for receiving this pension. I have benn medically retired early due to illness. Is this right that you lose the same amount off your ESA claim as what you receive in your weekly pension. Also I have had a lump sum does this also now affect my ESA amount? Very confused now. Thanks for any help in advance

Can you please look at your recent ESA award letter and tell us exactly what it says about how they have worked out your ESA payment?

Alice_Holt

If you receive contribution-based ESA 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.So, for a pension income of £90, the excess is £5. The amount of ESA payable is reduced by half of that, which is £2.50.

If you receive income-related ESA, any pension income you have will be taken into account, regardless of the amount.. So for a weekly pension of £90, your income-related ESA, would reduce by £90.

Is your ESA solely contribution-based or do you have an income-related ESA top-up / premium?

Nannytone

The Op may will receive income related top ups including the severe disability premium and the enhanced disability premium. These added together my will add up to the amount the op has lost/B]

Beckham74x

My letter states:-
Living expenses. £73.10
Severely disabled £62.45
Disability income guarantee £15.90
Support group extra £36.55

Totals £188.00

Now it says less £87.38 due to pension income

Total £100.62 instead of £188.00?????

Don!!!8217;t understand lol

pmlindyloo

Beckham74x wrote: »

My letter states:-
Living expenses. £73.10
Severely disabled £62.45
Disability income guarantee £15.90
Support group extra £36.55

Totals £188.00

Now it says less £87.38 due to pension income

Total £100.62 instead of £188.00?????

Don!!!8217;t understand lol

Because you are getting disability premiums this suggests that you are on income based ESA not contribution based ESA which means that your pension is deducted £1 for £1 from your benefits.

What made you think you were on contribution based ESA?

And how much in savings have you now? They haven't deducted anything for capital which suggests you have less than £6000.

Beckham74x

Because I am in support group and just been medically retired from work and paid all my NI upto date. Also, I couldn’t claim cold weather payments because call centre said I was contribution based and not income related?????

poppy12345

Beckham74x wrote: »

Because I am in support group and just been medically retired from work and paid all my NI upto date. Also, I couldn’t claim cold weather payments because call centre said I was contribution based and not income related?????

Just because you're in the Support Group doesn't mean you're on Contribution based. You can be in the Support Group and claim both Income Related and CB.

You maybe claiming CB based but you have an Income Related top up as clearly stated by the premiums that you were receiving. How much per week is your pension? As you're losing £87 per week from your ESA this suggests that your pension is more than £85 per week.

Beckham74x

So do I not get contribution based ESA when my last 28 years of NI have been paid in full???? Really confusing???

pmlindyloo

Beckham74x wrote: »

So do I not get contribution based ESA when my last 28 years of NI have been paid in full???? Really confusing???

It is not the number of years that you have paid NI contributions that count. It is based on the two full tax years before you claimed.

Usually your award letter would say you are entitled to contribution based ESA and then go on to calculate an income based 'top up'.

In view of what you have said I would telephone them and ask them to explain their calculation.

poppy12345

Beckham74x wrote: »

So do I not get contribution based ESA when my last 28 years of NI have been paid in full???? Really confusing???

Yes, it's highly possible you do. CB ESA Support Group was £109 ish before April this year. It's now gone up to £110.75 per week. The premiums on top are paid if you have no income, for example a partner that doesn't work. It will tell you on your award letter if it's CB because it will state will tax years they used.