Armed forces pension at age 60 - ESA deduction - Page 2 — Scope | Disability forum
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Armed forces pension at age 60 - ESA deduction

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Comments

  • spb1612
    spb1612 Community member Posts: 36 Connected

    spb1612 said:
     I am also going to receive a lump sum of £12,000 but I am paying £4,000 of outstanding mortgage, £6,000 credit card loan and DWP overpayment of £5,000.  That will not take me over £6,000.

    Paying off debts and your mortgage could be classed as deprivation of capital, unless the debts are immediately payable because you're receiving letters demanding payment.

    As soon as you receive that money in the bank you need to report the changes to DWP. That amount of money will reduce your Income related ESA by £20 per week. If part of your ESA is Contributions based and you're receiving £128.45 per week then your will lose the income related top up and just receive the Contributions based, which is £111.65 per week.

    For UC then the rules are the same for pensions because it's a means tested benefif BUT if part of your ESA is Contributions based then you'll always stay on that because it's not part of UC. You will only move across for any income related top up.

  • spb1612
    spb1612 Community member Posts: 36 Connected
    I see no sense in investing the money in my bank where I would get 0.24% interest on my savings when I am paying 21% APR for my credit card and 3% for my outstanding mortgage. 

    This does not make sense and I would be losing money as a result and it is unreasonable.

    Will I be forced to keep the £5,000 in my bank without spending it, I spend more money than I earn and I have to rely on family for help.

  • spb1612
    spb1612 Community member Posts: 36 Connected
    My occupational pension will be £79 per week.

    As stated above, a, occupational pension affects Income related ESA £1 for £1 because it's classed as income, yet one is allowed to work up to 16 hours a week and earn up to £140 per week. 
  • poppy123456
    poppy123456 Community member Posts: 53,359 Disability Gamechanger
    Permitted work is totally different to a pension.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • spb1612
    spb1612 Community member Posts: 36 Connected
    I read that under universal credit certain income is disregarded, would occupational pension be disregarded?  I lost all my pension, but I am on IR ESA. 

    Can I switch to universal credit to receive all my pension if this is the case?
  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    spb1612 said:
    I read that under universal credit certain income is disregarded, would occupational pension be disregarded?  I lost all my pension, but I am on IR ESA. 

    Can I switch to universal credit to receive all my pension if this is the case?
    Pension income is deducted £1 for £1 from UC, same as for IR ESA.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.

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