Income Support and small Private Pension

dalem_2 · 30 July 2011 at 10:55AM

Hello.
My first post here and wondered if someone could give some advice about Income Support and a small private pension I receive.

Some brief details about me first.
I am 58 and have been unable to work for about 5 years now due to illness of my lungs. I am receiving IS and DLA (Higher rate mobility component and lower rate care component)
I also receive a very small pension from a private pension I paid into while I was working.

I have been receiving the pension (which is about £98 per month) for about 18 months now.

Before I accepted the pension I contacted the Benefits Agency by telephone to see if it would affect my Income Support or DLA and was told quite emphatically that it would not affect any benefits I receive.

I made sure I contacted them first as I was worried it would affect my benefits. Had they said that it would affect my benefits I would not have taken the pension, I would have waited until my retirement age of 65.

Today, (30/07/11) I received a letter from the Benefits Agency with two separate forms inside. One form was asking about any private pensions I receive and the other was the huge "Income Support Review Claim Form".

What now bothers me is that they are going to take my private pension off of my Income Support and make me pay back over 18 months of pension I have already received (although that is not mentioned in their letter).

I have used the Benefits calculator on this website and also the one on DWP website and put in all of my details including the measly pension I receive and it appears they will take off any pension from my Income Support.

I am a bit confused as to why they told me "It won't affect my benefits" when I phoned them when it now appears that it does.

I have no proof of any calls made to them about my pension, I was trying to be an honest citizen and contact them first.

Can someone give any advice on this matter.
Please don't offer the CAB or other as they have been useless in the past and I don't wish to have their advice again.

Thanks for reading.

Oldernotwiser · 30 July 2011 at 10:58AM

Have you kept a copy of the confirmation you received when you made your enquiry?

ETA. Are you actually getting Incapacity Benefit topped up by IS?

dalem_2 · 30 July 2011 at 11:04AM

Oldernotwiser wrote: »

Have you kept a copy of the confirmation you received when you made your enquiry?

I don't have any confirmation or even proof that I made the call, except a relative who was nearby when I called.
I was rather trusting and hoped that the call may have been recorded by the Benefits Agency, but now I begin to think I was rather too honest and naive.

dalem_2 · 30 July 2011 at 11:15AM

Oldernotwiser wrote: »

Have you kept a copy of the confirmation you received when you made your enquiry?

ETA. Are you actually getting Incapacity Benefit topped up by IS?

I used to have IB but now get IS
I was under the impression that IB stopped a while back and it was changed over to Income support.
Any mail or communication I receive says Income Support on it.

real1314 · 30 July 2011 at 11:22AM

The simple facts are that it will affect your benefit, and it always should have done.

So, they will reduce your benefit to the correct amount.
They may also ask you to repay the overpayment.

This will leave you no worse off than the law says you should be. You have effectively received an interest free loan for the past 18 months. :cool:

Oldernotwiser · 30 July 2011 at 11:50AM

dalem wrote: »

I used to have IB but now get IS
I was under the impression that IB stopped a while back and it was changed over to Income support.
Any mail or communication I receive says Income Support on it.

IB changed to ESA rather than to IS.

I don't think that you've been "too honest" but I can't understand how you could have gone ahead based just on the advice of a call centre operator; all the information on IS is clear that any other income will affect it.

dalem_2 · 30 July 2011 at 12:03PM

Oldernotwiser wrote: »

IB changed to ESA rather than to IS.

I don't think that you've been "too honest" but I can't understand how you could have gone ahead based just on the advice of a call centre operator; all the information on IS is clear that any other income will affect it.

Yes I understand what you are saying but I assumed (maybe wrongly looking back ) that the call centre people should know what they are talking about.
Also at the time I am sure I was getting IB (Incapacity Benefit) and not sure if that benefit would have been affected.
It's only fairly recent that the IB has been scrapped and replaced by IS.

Oldernotwiser · 30 July 2011 at 12:39PM

dalem wrote: »

Yes I understand what you are saying but I assumed (maybe wrongly looking back ) that the call centre people should know what they are talking about.
Also at the time I am sure I was getting IB (Incapacity Benefit) and not sure if that benefit would have been affected.
It's only fairly recent that the IB has been scrapped and replaced by IS.

If you were getting IB then the advice you were given was correct as it wouldn't be affected by a pension of that size. However, if your IB was being topped up by IS (which I believe can happen), it would affect
the IS component.

If you'd been moved from IB to ESA I think you'd have known about it as the assessment criteria are rather different and I'm sure you'd have been called for a medical.

Would you mind giving details of what IB/IS/ESA you receive as it might help to clarify things. Also, do you claim any other means tested benefits?

McKneff · 30 July 2011 at 12:59PM

Not sure about this which is why i ask the question.

Is a pension calculated into the claim even if it not taken, ie you have the choice to take the pension so it is counted.

Surely you cant defer a pension in order to claim more beneit (if you see what I mean)

dalem_2 · 30 July 2011 at 1:08PM

Oldernotwiser wrote: »

If you were getting IB then the advice you were given was correct as it wouldn't be affected by a pension of that size. However, if your IB was being topped up by IS (which I believe can happen), it would affect
the IS component.

If you'd been moved from IB to ESA I think you'd have known about it as the assessment criteria are rather different and I'm sure you'd have been called for a medical.

Would you mind giving details of what IB/IS/ESA you receive as it might help to clarify things. Also, do you claim any other means tested benefits?

Yes of course.

The last letter I have from the Benefits Agency is dated 21/02/11.
It's a two page letter and on the first page is this:

About your income support
From 12 April 2011 you will get £96.35 a week. This is because there will be a change to your Income Support rates.

Page two:
How your Income Support was worked out
For you £67.50
Because you are sick or disabled £28.85
Total ammount £96.35

DLA Care Component £0.00 £19.55 Is not counted
DLA Mobility Component £0.00 £51.40 Is not counted

Total Ammount of Income Support £96.35

I do not have any other means tested benefits or currently claiming for any.

Thanks.

EDIT: I am sure it is not ESA that I get and I have never been asked for a Medical, (Only at the very begining of my initial claim) about 5 years ago.

dalem_2 · 30 July 2011 at 1:12PM

McKneff wrote: »

Not sure about this which is why i ask the question.

Is a pension calculated into the claim even if it not taken, ie you have the choice to take the pension so it is counted.

Surely you cant defer a pension in order to claim more beneit (if you see what I mean)

Hello McKneff.

Sorry not sure if this question is aimed at me but all I can say is that because I retired at 53 for health reasons I had the choice from my previous employer to take a reduced pension from age 55.
I didn't have to take it and I could have waited until state pension age before taking it.
That's why I contacted the Benefits Agency to see if it would affect any benefits I have. Had I been told it would affect my benefits I wouldn't have touched it.

Income Support and small Private Pension

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