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Advice on claiming dependants pension while on income related ESA?

Jo2018Jo2018 Posts: 2Member Listener
My son is in the supported group of income related ESA. 
He has recently been award a dependants pension of £5583.60 per year from my late husbands
private pension.

Can anybody let me know if it is worth while claiming this pension as its nearly (£20per week short) the same amount as his ESA, which may be affected by receiving the pension. I think he may have to pay NI and tax on the pension payments so he may be worse off.

Cab anybody advise please 

Replies

  • CockneyRebelCockneyRebel Posts: 4,125Member, Community champion Brian Blessed
    Hi Jo2018 and welcome

    You should get f2f financial advice from CAB or similar to explore your sons options.
    I belive that his ESA IR will be reduced £ for £ by the pension amount if it is paid weekly/monthly as income. If paid as a lump sum annually, then it may be seen as capital or savings which treated differently

    CR .
    Be all you can be, make  every day count. Namaste
  • Jo2018Jo2018 Posts: 2Member Listener
    Thank you for the advice. 
    I will look into this further, but do you know if this could be year on year as a yearly payment, or I could only take the first £5999, and then the 2nd yearly payment would be treated different??
  • Sam_ScopeSam_Scope Posts: 6,609Administrator Scope community team
    @BenefitsTrainingCo can you help?
    Scope
    Senior online community officer
  • BenefitsTrainingCoBenefitsTrainingCo Posts: 2,486Member, Community advisor Chatterbox
    Hi Jo2018

    Income related ESA is indeed affected by a private pension. The private pension would count as income and so your son's ESA would be much reduced and could even stop.

    Based on what you've said if your son has no other income that counts for income related ESA then he is likely to be receiving ESA of £125.55 per week. It may be more if he also receives Personal Independence Payment. The weekly amount of the pension would be £107.38 and this would be used to reduce his income related ESA to a likely £18.17 per week.

    In these circumstances your son would be no better nor worse off for receiving the pension. He might like to consider deferring the pension or receiving some of it as a lump sum amount bearing in mind the upper capital limit for income related ESA is £16,000 meaning he would not be eligible for the benefit if a lump sum payment took his savings above this amount.

    I hope this helps
    David
    The Benefits Training Co:
    Paul Bradley
    Will Hadwen
    Sarah Hayle
    Lee Kempson
    Mary Shone
    Maria Solomon
    David Stickland
  • wilkowilko Posts: 952Member Chatterbox
    It's a difficult one this go and get some independent advice, there are many more aproching this situation and wondering what to do having worked all the their lives paid into private or works pension or have endowment polices due to mature are all going to lose their benefits  because they where fugal and saved.
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