Mixed Age Couple on ESA, one going to Pension

geoffboswell

Hello, I've seen similar enquiries but not exactly this one. My wife and I currently receive ESA (Support), she is the claimant, and I am attached to her claim. She is the younger, I am the older by two years. I come into state pension 31st August (just received the invitation to apply). She gets PIP, and so do I. I know we keep them. I claim carers benefit which I believe will cease. I'm enquiring if she just stops on ESA with an alteration to the amount? That is what a local Money Advice Centre told us, and they inferred we'd be better off thereafter. She claims HB which we will need as we rent privately. Our landlord is far from sympathetic. I could also claim a small works pension,  currently deferred, which could offer circa £200 pcm. I'm not sure if I should take that or not. Also, my PIP may need to be reviewed in the future due to my declining years and abilities. Do I do that (or request that) now before my state pension age? So I guess I have a number of questions in there: 
1) Does my wife stay on ESA but with a lowered value? Or does she have to claim UC (please say no, we'll lose hundreds a month)
2) I have to claim state pension, should I claim anything else? (Pension Credit etc)
3) Does (my wife's) HB stop or not?
4) Should I continue to defer my private pension or take it at the same time as the state pension?

Can anyone state or advise on anything I've missed? I feel the 'advice' I was given by the local MAC might not have been accurate.

Thank you in anticipation..

geoffboswell

I forgot to revisit the question of PIP review, sorry!

Alice_Holt

My thoughts:

1)  As your wife (the younger member of your MAC) is the main ESA claimant, then the fact that you have turned pension age does not automatically terminate the ESA award. 
When you start to receive your State Pension and your other pension entitlements (which will be taken into account when your ESA entitlement is calculated), the ESA calculation should be more generous, as it should now include a Pensioner Premium.
If you remain entitled to Income Related ESA, taking into account all pension income, then your working age Housing Benefit should remain in payment.
But if the amount of total pension income is high enough to mean you no longer qualify for any ESA, it would terminate, as would any Housing Benefit (you cannot have working age HB without an ESA claim and working age HB cannot turn into pension age HB).

2)  You cannot claim PC until your wife becomes eligible for her SP.

3) See above. If HB ends you could check for possible entitlement to UC (with the housing costs element included). 

4) Once you are SPA this pension needs to be declared to the DWP, and (AFAIK) the ESA calculation will include it even if you defer it (again see above).

5) Your PIP awards will continue, and be paid past SPA.  There is no need to request an early assessment.  

It is complex so you might want to put your situation / income at your SPA into a benefit calculator.  

https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/benefits-calculator/

calcotti

1) As she is the youngest person and receiving income based ESA then she can remain an ESA claimant.
Her ESA will have add a pensioner premium added (for you).
Although your CA will stop you with retain an 'underlying entitlement' to CA and her ESA will still have the carer premium included.
Because you will not receiving CA she could get a Severe Disability Premium added for herself (if the other conditions are met). Is she getting an SDP for you? (SDP will only apply if you are not living if other adults unless in receipt of a relevant disability benefit.)
Your pension income will be deducted in full (see also notional income under note 4 below).

2) You cannot claim Pension Credit (you both have to reach pension age until PC can be applied off.

3) Because the ESA continues the HB can continue too. Note that your local authority may advise you incorrectly. Remaining on ESA will be worth significantly more than being UC would be.
https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2019/a92019-mixed-age-couples-further-guidance#existing-hb-claimants-over-pension-age-on-15-may-2019
See paragraphs 4 and 5 and refer local authority to this circular if you needed.

4) When you reach pension age you are expected to make use of your private pension funds. You will need to inform DWP about your pensions/private entitlement.
Pension pots (if applicable) will still be ignored but notional income will calculated and taken from the ESA even if you choose to taken nothing. (The calculation of notional income is very complicated.)
In your case if you are entitled to £200/month of private pension that will be deducted from the ESA even if you defer it.

You can try putting the relevant information into a benefit calculation (put yourself as if you are already pension age) and this would give you an indication of what you could get. https://www.turn2us.org.uk

Note that if your other income means that income based ESA is no longer payable there will no longer be entitlement to Housing Benefit (even if contribution based ESA continues if applicable) and any help with rent would have to be from UC.

You should get the numbers worked through before you reach pension age because if it is necessary/appropriate to claim UC that should be done before you just pension age to have continuity of ESA to UC.
 

calcotti

Indicative calculation

 - Couple allowance  £133.30

 - Support group £44.70

 - carer premium £42.75

 - Pensioner premium £128.85

Total - £349.60

Deduct your SP £203.85 (if the standard rate) 

Deduct your private pension, say £50.00

Remaining income based ESA entitlement = £95.75

That would be less than the contribution ESA amount entitlement (£129.50) if applicable so income based ESA would be payable.

However if Severe Disability Premium (SDP) applies there would be an additional £76.40 per applicable person and could result in remaining entitlement on income based ESA and therefore HB.
Above is all conjectural because I don't know your full details.

Alice_Holt

" She gets PIP, and so do I "

What rates of PIP do you get ?

Do you both receive the Daily Living component ?

This is important as the SDP would then apply to your ESA claim (see calcotti's post).