ESA & Pension Lump Sum

Confuciusone

Hi I currently receive ESA Contribution Based in the Support Group. I’ve just received a letter from DWP asking me about my Personal Pension yearly increase, as they do every year, my personal pension annuity is level none increasing £61.09 pw, £23.91 under the £85 pw disregard, completed the form and returned previously, no worries.

For the first time March this year I withdrew £3450 UFPLS from a small SIPP fund, to pay bills, within my tax allowance, thought all was fine, completely forgot to consider the implications regarding my ESA or even declaring, as it was a one off lump sum, and not monthly pension (senior moment)…. until I received today's DWP Personal Pension yearly increase letter.

Can anybody advise, what my position is now and how this may be resolved. I’m £42.43 pw over £85 so ESA overpaid by £21.22 for 2017/2018 tax.

I don’t intend to make any further withdrawals until after I receive my State Pension at age 66, also panicking could the small fund left be regarded as notional income and reduce my ESA until the Sipp fund is zero.

Any advice appreciated.

TELLIT01

Notional income doesn't apply to Contribution Based ESA so there is nothing to worry about there
.

poppy12345

Confuciusone wrote: »

Hi I currently receive ESA Contribution Based in the Support Group. I’ve just received a letter from DWP asking me about my Personal Pension yearly increase, as they do every year, my personal pension annuity is level none increasing £61.09 pw, £23.91 under the £85 pw disregard, completed the form and returned previously, no worries.

For the first time March this year I withdrew £3450 UFPLS from a small SIPP fund, to pay bills, within my tax allowance, thought all was fine, completely forgot to consider the implications regarding my ESA or even declaring, as it was a one off lump sum, and not monthly pension (senior moment)…. until I received today's DWP Personal Pension yearly increase letter.

Can anybody advise, what my position is now and how this may be resolved. I’m £42.43 pw over £85 so ESA overpaid by £21.22 for 2017/2018 tax.

I don’t intend to make any further withdrawals until after I receive my State Pension at age 66, also panicking could the small fund left be regarded as notional income and reduce my ESA until the Sipp fund is zero.

Any advice appreciated.

Are you sure it's 100% CB and not part CB with an Income Related top up you're claiming? CB Support Group is £110.75 per week.

[Deleted User]

My limited knowledge on the subject of esa and pensions tells me you should have a word with someone at CAB who knows more about it.

Confuciusone

Thanks for the replies,
My ESA is the full CB £110.75, with my PP annuity £61.09 I'm under the £85 pension disregard, my issue is the lump sum £3450 taken March 18 has pushed me over, I would like to know want DWP will do to recover or deal with the over payment and how it will affect my future ESA before contacting them.
Getting any advice from the CAB is very difficult in my area due to funding, getting an appointment is near impossible.

poppy12345

Confuciusone wrote: »

Thanks for the replies,
My ESA is the full CB £110.75, with my PP annuity £61.09 I'm under the £85 pension disregard, my issue is the lump sum £3450 taken March 18 has pushed me over, I would like to know want DWP will do to recover or deal with the over payment and how it will affect my future ESA before contacting them.
Getting any advice from the CAB is very difficult in my area due to funding, getting an appointment is near impossible.

Then it's not taken into consideration because you claim Contribution based. See post #2 quoted here.

TELLIT01 wrote: »

Notional income doesn't apply to Contribution Based ESA so there is nothing to worry about there
.

Becky020

I live on my own and was recently awarded standard daily living and enhanced mobility but I'm moving back in with my mum because landlord is selling up, so could my pip change

pmlindyloo

Becky020 wrote: »

I live on my own and was recently awarded standard daily living and enhanced mobility but I'm moving back in with my mum because landlord is selling up, so could my pip change

No, this won't affect your PIP claim.

Do you claim any other benefits?

Becky020

Hi, yes I claim ESA

Becky020

I also claim pip, anyone no

poppy12345

Becky020 wrote: »

I live on my own and was recently awarded standard daily living and enhanced mobility but I'm moving back in with my mum because landlord is selling up, so could my pip change

If you're claiming Severe Disability Premium on top of your ESA then this could be affected when you move back with your mum, unless she also claims a qualifying benefit. If you're not claiming that then your PIP and ESA won't be affected. You will just need to report the change of address.