ESA and private pension

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  • epitome
    epitome Posts: 3,199 Forumite
    edited 4 November 2017 at 1:23PM
    Sweepie3 wrote: »
    Hi

    I lost my job in March 2015 due to mental health problems, after 20 years in the NHS. I have received an ill health NHS tier 1 pension since September 2016.
    I received ESA income-related from March 2015 until August 2017- in the support group.
    The first inkling I had of a problem was when my mortgage provider wrote to me to say that my account is in arrears and that DWP have advised them ( not me!) that they are no longer making the mortgage interest payments on my account - as per ESA. I then received a letter regarding my council tax payments saying that I am £400 in arrears and no longer entitled to council tax support - again as per ESA.
    I contacted DWP to query all this and was told that from August of this year, I am no longer entitled to income- related ESA and am now on contribution- based. This effectively amounts to nothing - no payments, no help with mortgage costs, council tax support, prescriptions, etc.
    My weekly pension amount is £197.
    My monthly mortgage payment ( for a small 2 bed terrace house) is now £756 ( previously 456).
    Council tax is now £150 including the sudden arrears ( previously £33).
    I receive child tax credits and child benefit but I am now unable to pay any of my household bills in full.
    I have been applying for jobs ( even though I am still in the ESA support group and have ongoing mental health issues) out of desperation.
    I don't understand what the point of contribution based ESA is as it amounts to sweet nothing in my case- also i thought it was based on the last year of employment's contributions and mine would have been quite high as I was earning £47 k a year.
    Thanks for any advice that you can offer.
    Also I have applied for PIP and the first refusal is currently being reconsidered ( I previously received it from January 2016 to June 2017).


    This thread does have a lot of info on ill health pensions. And what we have found out is that they are subject to the normal Pension rules on ESA IR or ESA Conts.

    That is to say:
    * For ESA IR all private pension income (net pension income) is deducted. and it would be deducted from the ESA IR applicable amount...The applicable amount is the ESA IR award that includes any premiums(disability, carer, pensioner) & components (Support Group Component), any money for a partner, any money for a mortgage. From this total, the pension income is deducted.

    * For ESA Conts the gross pension income figure is used, it is averaged to a weekly amount. The first £85 is disregarded, the remaining balance is divided by 2 and then deducted from ESA Conts.

    Your pension amount of £197 per week (you do not say if it is gross or net) I will assume gross.

    Your ESA Conts SG = £109.65
    Less the pension amount: (197-85)/2 = £56
    Total ESA Conts £53.65 per week....(if £197 is a gross figure.)

    If 197 is not the gross figure and the gross is higher, then your ESA Conts will be less than £53.65

    Your income is (assumed to be) £197 + £53.65 = £250 a week, £1086 per month.

    Your mortgage and CT are £906

    Leaving you with £41.50 per week

    You should note that if it was "ESA IR only" the assumed position would be that you had no benefit income, and would be in the red each week by about £10.

    You should ask Shelter helpline for advice on your Council Tax. But make sure you know before calling
    Exactly what your ESA IR applicable amount is
    What your pension 'gross' and 'net' is
    What your ESA Conts is paying you per week.
  • pmlindyloo
    pmlindyloo Posts: 13,049
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    To add to Epitome's post.

    If you are awarded the standard daily living of PIP then you may be entitled to income based ESA again if you are eligible for the Severe Disability Premium (do you live alone other than your dependent children?)

    You have your child tax credits and child benefit as well as the £41.50(ish) per week - how much is that in total?

    You could look into doing Permitted Work (goggle for more information) which would give you some extra income without affecting your ESA. (under 16 hrs at NMW)

    In the mean time, contact your mortgage provider and ask if there is any way you could go interest only/take a payment holiday whilst you are seeking work/awaiting your PIP appeal.
  • Hello,
    I have received result of my mandatory reconsideration and DWP decided to stop my ESA due to my extra money I am getting from SPPA. In their notice was no mention about any repayments so I called them and found out that they will not reclaim any money I have received because this was their not mine error. They told me , that although I am not getting any payments they will still contribute my NIN credits. Some of you posted about claiming PiP, could you please advise what would be the procedure to apply for it in my circumstances ? I just want to assess if claiming another benefit is really worth after all these stress I went recently through.
  • TELLIT01
    TELLIT01 Posts: 16,372
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    Mark4321, I can't answer your question about PIP but did want to thank you for updating us on the outcome. Most people don't, but that's understandable as the questions are often raised in very stressful circumstances, and the last thing people want to do after event is revisit the situation.
  • pmlindyloo
    pmlindyloo Posts: 13,049
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    Mark4321 wrote: »
    Hello,
    I have received result of my mandatory reconsideration and DWP decided to stop my ESA due to my extra money I am getting from SPPA. In their notice was no mention about any repayments so I called them and found out that they will not reclaim any money I have received because this was their not mine error. They told me , that although I am not getting any payments they will still contribute my NIN credits. Some of you posted about claiming PiP, could you please advise what would be the procedure to apply for it in my circumstances ? I just want to assess if claiming another benefit is really worth after all these stress I went recently through.

    PIP is a non means tested benefit so you can certainly look into whether you would be eligible.

    If you go back to post 22 Alice has given some links about PIP.

    Have a read and come back if you need any further help.
  • Mark4321
    Mark4321 Posts: 25 Forumite
    I am always trying to post the answer when I got it , so you don't have to thank me for that although I suspect not many people bother to get back to you with final outcome. In relation to PiP I did read the guidelines links provided by Alice but can't find any answer in connection with ESA. I was hoping ,that in case when claimant is already under ESA and in support group the process of PiP will be less complicated due to medical history DWP already has.
  • poppy12345
    poppy12345 Posts: 17,847
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    Mark4321 wrote: »
    I am always trying to post the answer when I got it , so you don't have to thank me for that although I suspect not many people bother to get back to you with final outcome. In relation to PiP I did read the guidelines links provided by Alice but can't find any answer in connection with ESA. I was hoping ,that in case when claimant is already under ESA and in support group the process of PiP will be less complicated due to medical history DWP already has.
    Unfortunately not because they are different benefits, people claim PIP and work. ESA is for those with a limited capability to work. If you want to start a claim for PIP then you'll need ring them. They will then send you a form to fill in. Evidence will be needed to support your claim, like ESA. It's rare for them to contact anyone for evidence. Most people have an assessment, so expect one of those as well.
  • Mark4321
    Mark4321 Posts: 25 Forumite
    I understand an assessment means I will have to go to see a consultant ? Well, the same they were doing when I have applied for ESA so DWP is aware my illness is incurable, what means no improvements since the first assessment.
  • Alice_Holt
    Alice_Holt Posts: 5,921
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    Mark4321 wrote: »
    I I was hoping ,that in case when claimant is already under ESA and in support group the process of PiP will be less complicated due to medical history DWP already has.

    No, PIP is a different benefit to ESA with different criteria.

    There is some limited crossover - if your are in the SG because of the mobilising descriptor, then it is worth mentioning this on the PIP form for the moving around activity BUT the descriptors are different.

    It is best to supply current medical evidence, showing how you fit the PIP descriptors. You certainly cannot assume the DWP will go back to your ESA medical history when assessing a PIP claim. It's a different benefit and different claim dates.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Mark4321
    Mark4321 Posts: 25 Forumite
    For how long PiP is usually granted ? I understand same way like with ESA they do reassessments ?
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