Savings and benefits, taking out part of pension

Iwanttobefree

Hi all.

Short version:

Haven't received any benefits since around March as I lost my Tribunal, and as unable to work, been relying solely on my wifes earnings.

Am 55 next year, one of my pension companies have said, as I'm ill, if my GP signs a form, I can take that pension now.

Please keep this solely about the benefits I'm describing, I have discussed my pension options etc in another part of the forum, and have discussed my benefits to death on here.

I want to take out £10k as we need a new car, we need to get the stairs fixed, there's no carpets in the landing or our bedroom, we need to have our fascia boards done etc, and to leave us with about 5K as savings.

I've just received a letter from the Upper Tribunal saying I have won my appeal and I now have to go to a new tribunal with a different judge/GP etc.

IF (and I'm not holding my hopes up) I win this appeal, I should be owed about 3K in backdated payments.

So the reality is, it will take a while for me to receive my pension money, and if I won the appeal, technically I would have £13000 in the bank while finding a new car and getting the work done on the house.

And even if I had got the car etc, I would then have about 5k in savings, if I then receive the backdated 3k of benefits, it pushes me over the 6k of savings (even though if I won the tribunal, that backdated money would go on other needed essentials that I wouldn't be able to do otherwise, like new fencing, new back gate, washing machines on its way out etc).

From what (I've read. if you have more than 6k of savings and your on benefits, you cant simply spend some to get back under the 6k limit. But I'm only taking my pension ias we need to buy essential things, and while I'm at it, we will have a emergency fund to fall back on should any emergencies crop up.

Any advice greatly received.

Ames

Backpaid benefits are disregarded as capital for a year. As long as you spend them within that timeframe they won't be counted as savings.

GlasweJen

Is your tribunal for a contributions based ESA or for PIP? If so they don't have an upper savings limit (that only applies to income based benefits which I don't think you'd get due to you saying your wife works).

The complication is the rules around contributions based ESA and income from a pension so if you're claiming ESA I'd check with them before withdrawing from your pension.

Iwanttobefree

GlasweJen wrote: »

Is your tribunal for a contributions based ESA or for PIP? If so they don't have an upper savings limit (that only applies to income based benefits which I don't think you'd get due to you saying your wife works).

The complication is the rules around contributions based ESA and income from a pension so if you're claiming ESA I'd check with them before withdrawing from your pension.

Contributions ESA

calcotti

For contribution based ESA there is no capital limit. However if you will be receiving a regular pension then any income over £85/week will reduce the amount of ESA you get by half of the excess. so if you had a weekly panino of £100/week your ESA would be reduced by £7.50/week.

Iwanttobefree

calcotti wrote: »

For contribution based ESA there is no capital limit. However if you will be receiving a regular pension then any income over £85/week will reduce the amount of ESA you get by half of the excess. so if you had a weekly panino of £100/week your ESA would be reduced by £7.50/week.

Thanks. This particular pension is only about £10,000 in total, which according to them is currently worth about £377 a year, hence my decision to take the lot of it in cash to buy some essential things etc.

I won't be receiving any regular pension, my other pensions are all being kept until I'm 65.

So, me taking this 10k pension, will the DWP say that's equivalent of around £100 a week regular pension income for the next two years and adjust my ESA as per your previous post?

many thanks

calcotti

They shouldn't.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721751/dmgch15.pdf
Paragraph 15280
Payments of occupational or personal pensions are periodical payments which are made in connection with the ending of a person’s employment
1. out of money provided wholly or partly by the employer or under arrangements made by the employer or
2. out of money provided under an enactment or instrument having the force of law in any part of the UK or elsewhere or
3. under a personal pension scheme or
4. under a pension scheme registered under specific legislation

Para 15284
Occupational or personal pension, or payments for redundancy which are paid as a lump-sum or are not related to a specific period should not be taken into account. Where a person has commuted periodic payments to a lump-sum this payment will not be taken into account.

Ames

Something to factor into your calculations is that if you're put in the WRAG group of ESA you'd only be entitled to it for a year. As your case has been going on for so long if you're put in the WRAG you won't have payments going forward. There's no time limit in the Support group.

calcotti

Ames wrote: »

Something to factor into your calculations is that if you're put in the WRAG group of ESA you'd only be entitled to it for a year. As your case has been going on for so long if you're put in the WRAG you won't have payments going forward. There's no time limit in the Support group.

But could possibly get an income based award depending on their other circumstances.

Question for the OP. Are you just getting contribution based ESA (presumably £110.75) with no income based top up.

poppy12345

calcotti wrote: »

But could possibly get an income based award depending on their other circumstances.

Question for the OP. Are you just getting contribution based ESA (presumably £110.75) with no income based top up.

There's currently no ESA being paid because the OP was found fit for work and lost their Tribunal. This threads reports error in law being found and now waiting for another Tribunal.

https://forums.moneysavingexpert.com/discussion/5906172/re-work-capability-assessment-i-scored-0-points

calcotti

poppy12345 wrote: »

There's currently no ESA being paid because the OP was found fit for work and lost their Tribunal. This threads reports error in law being found and now waiting for another Tribunal.

https://forums.moneysavingexpert.com/discussion/5906172/re-work-capability-assessment-i-scored-0-points

Had forgotten the starting point of the topic!