ESA benefit and PENSION payments

fogvyc9

My partner has recently been retired from work due to ill health on a tier 1, she is currently claiming ESA benefit and it is topped up with the severe disability premium, due to she also receives s PIP, she has been contacted by her pensions company and she was quite confused on what to do when they asked her to choose 3 options, she was advised by citizens advice to take no more than £6000 as a lump sum so she took £4000, but she was not aware their would be a monthly payment from her pension of £285, my question is does anybody know how this will affect her normal benefits income as she is on currently on income related ESA, of around £388 every 2 weeks. She understands the rule if it was contributions based but not how or if any affect it will have. She is also in receipt of housing benefit, does she need to declare this monthly pension payment and how will it affect her current benefits. She really needs your help to be able to understand this and is very worried her overall income will decrease.
Thanks

WillowCat

I assume she lives alone?

She must declare the pension. If she definitely on irESA It won't affect her HB but will be deducted pound for pound from her ESA payments.

If she is on contributions based ESA with an income related top up it's a little more complex.

In this case her IR ESA will be reduced pound for pound, down to the amount of the contributions based ESA. She won't then have any ir ESA so her passport to full HB will be affected, and I think she will then have a deduction from HB.

fogvyc9

Yes she lives only with her 16 year old son,. So basically the amount shes going to be receiving will be the amount they take away,?? she doesn't get her full rent amount in housing benefit at the moment anyway, its roughly £100 she has to put from her own money. The main worry at the moment is while she declares this pension income, she really can't afford to have any of her benefit income put on hold while they work out the deduction. Does anybody know what the process is like.
Many thanks for your advice