Pension lump sum and effect esa contribution based

brianfaescotland

Hi all have been offered to take lump sum pension from many years ago due to my age and health i am 59 now not sure what effect it will have on my pip disability and my esa which was new style then carried on as contribution and in support group. the figures for lump sum are £24,805 with about £3720 deducted for tax and payable is £21084 i am not sure what to do if it stops my esa or if over savings etc thanks

poppy12345

New style ESA is not means tested so a lump sum will not affect it, it will always been known as this and not contributions based. 

If you're claiming council tax reduction then a lump sum of this amount will mean you'll have no entitlement to any further CTR.

brianfaescotland

Thanks sorry if sound confused but just to add i am getting pip high amounts including motability i am also gettinh higher rate esa cont i believe and in support group. so if i can clarify i have been trying hours on phone to get dwp but as payment to me will be 21k will this stop benefits as over 6k savings? i am a bit confused as will not receive anymore pension this was a lump sum is it trivual? or similar wording thanks 

Spoonie_Turtle

PIP is not means-tested and no money of any kind will affect it.

Your ESA is not means-tested either and a lump sum will not affect it.
If you see reference to pensions affecting ESA, that's regular pension income (i.e. a weekly amount) so not relevant to your lump sum.

The £6,000 threshold is for means-tested benefits only.  Not your PIP or ESA.

Caz3121

Savings affect means tested benefits
PIP is not means tested
New Style ESA is not means tested
Worth checking your ESA award letter to check if it is all New Style or if you are getting any 'income related ESA' topup in addition as this would be affected

brianfaescotland

hi thanks i have checked letter found and it states 13th oct 22 your entitlement details 
contributory employment and support allowance
117.60 weekly
thanks

poppy12345

brianfaescotland said:

hi thanks i have checked letter found and it states 13th oct 22 your entitlement details 
contributory employment and support allowance
117.60 weekly
thanks

Your claim started as New style and will remain as New style, it's a contributions based benefit only. It's now £129.50/week since the April increase. As advised a couple of times it's not means tested so a lump sum will not affect it.