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ESA and pension payout

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  • herb66herb66 Forumite
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    Thanks guys One last question then I will leave you in peace Do I tell them about my annual income that I will be receiving from the Financial Assistant Scheme
  • calcotticalcotti Forumite
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    herb66 said:
    Thanks guys One last question then I will leave you in peace Do I tell them about my annual income that I will be receiving from the Financial Assistant Scheme
    Yes.     
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • edited 30 November 2022 at 10:44PM
    xxxxxxxxxxxxxxxx Forumite
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    edited 30 November 2022 at 10:44PM
    Hi Herb.....

    How much do you get currently paid from ESA every 2 weeks?  

    £154.00 
    or 
    £215.20 ?

    Or more ?  Do you get any other benefit like PIP?

  • herb66herb66 Forumite
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    Hi, I get £215.20 every two weeks No I do not get any other benefits
  • edited 1 December 2022 at 10:44AM
    xxxxxxxxxxxxxxxx Forumite
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    edited 1 December 2022 at 10:44AM
    Hi Herb 

    Yeah you must be on Income Related ESA,..."ESA IR"    I cannot remember if you got the answers you needed but I am going to give you my opinion.  
    With the lump sum, as long it does not take you over £6,000 it will not affect your ESA,  If it does take you over £6000, keep a record of your receipts for things you buy, and as soon as you go below £6,000 send your bank statements & receipts (it is best to send photocopies) from the point at which you received the lump sum to the current day...to ESA and request a re-evaluation of your savings.  In the first instance, you could just send the bank statements (photocopies) without the receipts.

    To calculate your current bank savings amount you must deduct from the balance the amount of ESA you are paid every 2 weeks and the amount of Pension you are paid every month(?) 

    So, if on a given day, your bank balance is £6,300.00
    Your actual savings amount considered by the DWP will be 
    £6,300 -£149.03 -£143.36  = £6,007.61
    *where
    £149.03 is the amount of your ESA that last credited to your account and
    £143.36 is the amount of your pension that last credited to your account.

    If you chose an annual income of £1720.38   - will there be any tax on that taken off? 
    For ESA IR it is the Net Pension income which matters.  So assuming that is your Net paid amount after tax, 
     
    1720.38  / 52weeks =  £33.08  per week 

    Your ESA will change from £215.20  every 2 weeks to  £149.03 every 2 weeks  

    If you choose an annual income of £2036.10  and assuming that is the amount paid to you after tax - the net amount.

    £2036.10 / 52 = £39.15 per week 
    Your ESA will change to £136.88 every 2 weeks

    Any subsequent increases you must report to ESA what the pension has increased to every year as soon as you receive the higher amount. Just phone them up and tell them in the first instance, and ask them to confirm they have left a note on your ESA account record. Some pensions never increase and some increase every year.  

    herb66 said:
    Thanks guys One last question then I will leave you in peace Do I tell them about my annual income that I will be receiving from the Financial Assistant Scheme

    Will this be additional income to the £1720.38  or the £2036.10 annual pension amount we just discussed? 



  • edited 1 December 2022 at 12:16AM
    calcotticalcotti Forumite
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    edited 1 December 2022 at 12:16AM
    xxxxxxxx said:
    If you chose an annual income of £1720.38   - will there be any tax on that taken off? 
    As OP appears to have no other taxable income then clearly there will be no tax due on such a small pension.
    xxxxxxxx said:
    herb66 said:
    Thanks guys One last question then I will leave you in peace Do I tell them about my annual income that I will be receiving from the Financial Assistant Scheme
    Will this be additional income to the £1720.38  or the £2036.10 annual pension amount we just discussed? 
    According to the opening post the pension is from the Financial Assistance Scheme.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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