Cashing in small pension

robti

Hi I have a small pension £9000 and am on esa and pip and wondering if I cash it in, pay off my £7000 mortgage will I be hit with having over £6000 in savings?

Mark_d

You should be hit with it because there would be a trace of you having the money in cash

KxMx

No effect on PIP.
For ESA the answer depends on whether it is Contributions Based, Income Related or a combination of both. 

Famau

No - if you are reducing debt then it should not count against you so long as the payment is made soon and clearly for that purpose.

Spoonie_Turtle

Famau said:

No - if you are reducing debt then it should not count against you so long as the payment is made soon and clearly for that purpose.

For UC it works like that, but not so clear cut for ESA.  I'm not so conversant with the rules for legacy benefits but I believe for income-related ESA debt has to be immediately repayable, otherwise it can be classed as deprivation of capital.

robti

Thank you for all the replies, is there somewhere I can find out for definite?

marcia_

Famau said:

No - if you are reducing debt then it should not count against you so long as the payment is made soon and clearly for that purpose.

 That is not true for ESA. Paying off debt that is not due is deprivation of assets unlike UC 

kaMelo

robti said:

Thank you for all the replies, is there somewhere I can find out for definite?

Yes, here is as good as anywhere. The important question, as raised by others, is what type of ESA you claim. If there is any income related element then it may have an inpact

Alice_Holt

robti said:

Thank you for all the replies, is there somewhere I can find out for definite?

       As already stated in your thread:

     PIP is not affected

    ESA - " For ESA the answer depends on whether it is Contributions Based, Income Related or a combination of both. "
You have not given us this information, so it is impossible to give you a definitive answer.

     Which is it?  If you are not sure contact ESA to check.

   If income related (or part IR) - then it will be affected.

https://www.scope.org.uk/advice-and-support/employment-and-support-allowance#:~:text=Income-related ESA savings limits&text=The savings limits for income,16,000: you're not eligible

Note that Famau's post is incorrect