Interview with DWP Compliance Officer.

teamgb

This may appear to be in the wrong place but bear with me.


My wife gets contribution based ESA. She received a rather curt letter saying she must attend an interview with a Compliance Officer


We attended today and after introductions the young man informed us that they had information from HMRC which suggested my wife was in paid employment and had received payment in September from a company based in Bristol. My wife who is not in good health was speechless. So I ask for the name of the company.




Hargreaves Lansdown was the reply.:rotfl:


After I stopped laughing, I pointed out that HL is a pension provider and my wife who turned 60 last year took a small lump sum payment for the first time from her SIPP in September and I was able to provide proof of this.


They have accepted my wife is not working and advised that this may happen again, if it does they suggest we ring ask the reason for the letter and they may be able to resolve it over the phone.


It appears that HMRC record such payments as paid employment.

barnstar2077

lol. I wouldn't have laughed to his face though, they ain't exactly known for their sense of humour!

squirrelpie

It appears that HMRC record such payments as paid employment.

Certainly pension payments are paid within the PAYE system and recorded as such by HMRC. But clearly not all PAYE payments represent remuneration for employment (except considered by some as 'deferred' remuneration)

teamgb

barnstar2077 wrote: »

lol. I wouldn't have laughed to his face though, they ain't exactly known for their sense of humour!

The young man was pleasant enough and I suspect when he saw us he thought something was not right.


He did say that had we received pension payments on a weekly or monthly basis in excess of £85 per week it would effect ESA payments but a lump sum does not. I have not found any information to confirm this.

Paul_Herring

I rather suspect, but don't know for sure - maybe worth confirming on the benefits board, a lump sum would be more considered against the £6k-£16k savings limit, rather than the income limit.

Stoodles

Contribution based ESA isn't affected by savings.

WillowCat

It is correct that a lump sum is considered capital for benefits purposes. If a number of lump sums are taken that are recognised as being in a pattern (monthly, quarterly, annually etc) would be deemed to be income and ESA adjusted accordingly if they are equivalent to more than £85 per week.

Some more info on ESA on this page:

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

And although this guide is for pensions and universal credit, I believe the theory for the lump sums is the same for the other benefits

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/419105/adm13-15.pdf

Paul_Herring

Stoodles wrote: »

Contribution based ESA isn't affected by savings.

And is only paid for 6 months.

teamgb

Paul_Herring wrote: »

And is only paid for 6 months.

There is no time limit if you are in the support group.

Paul_Herring

teamgb wrote: »

There is no time limit if you are in the support group.

It remains 'contributions-based'? Doesn't it simply become income-based ESA after 6 months, then?

teamgb

WillowCat wrote: »

It is correct that a lump sum is considered capital for benefits purposes. If a number of lump sums are taken that are recognised as being in a pattern (monthly, quarterly, annually etc) would be deemed to be income and ESA adjusted accordingly if they are equivalent to more than £85 per week.

Some more info on ESA on this page:

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

And although this guide is for pensions and universal credit, I believe the theory for the lump sums is the same for the other benefits

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/419105/adm13-15.pdf

Thank you. So if my wife took a second lump sum payment next year they may regard it as income and make adjustments to her ESA. Would this be then back dated to reduce her ESA for the first payment. Interesting.