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Private Pension & ESA
- Elle
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1 month 4 days ago #295554 by Elle
Private Pension & ESA was created by Elle
Hello
I claim old style Contribution Based ESA and Personal Independence Payments standard rate.
I have a private pension, which I have been able to draw on, to cope with the ever increasing cost of living.
Consequently the DWP reduced the amount of ESA I could have due to my private pension support which understood and I had to pay back an overpayment from the DWP once I had been made aware of this issue.
I am now approaching 60 at the end of 2024. I have a very old small work related pension, that has sat idle for many years. This has reached maturity due to my age and I am being asked by the Pension Company to either take this sum as a small Pension or as a Lump Sum.
Because I am already drawing from my Private Pension, it would be more sensible financially to take the lump sum and put this into my Savings, which I am regularly using to help with my living costs. My private landlord has just increased my monthly rent by over £100 and I am struggling.
Please can you advise if any of what I have explained will affect my old style contribution based ESA by taking the lump sum and using this to ease costs. Many thanks. Eleri
I claim old style Contribution Based ESA and Personal Independence Payments standard rate.
I have a private pension, which I have been able to draw on, to cope with the ever increasing cost of living.
Consequently the DWP reduced the amount of ESA I could have due to my private pension support which understood and I had to pay back an overpayment from the DWP once I had been made aware of this issue.
I am now approaching 60 at the end of 2024. I have a very old small work related pension, that has sat idle for many years. This has reached maturity due to my age and I am being asked by the Pension Company to either take this sum as a small Pension or as a Lump Sum.
Because I am already drawing from my Private Pension, it would be more sensible financially to take the lump sum and put this into my Savings, which I am regularly using to help with my living costs. My private landlord has just increased my monthly rent by over £100 and I am struggling.
Please can you advise if any of what I have explained will affect my old style contribution based ESA by taking the lump sum and using this to ease costs. Many thanks. Eleri
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- David
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1 month 4 days ago #295585 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Private Pension & ESA
Hi Eleri,
No taking a pension lump sum does not affect Conts Based ESA. The ESA regulations clearly state that only " periodic payments " cause deductions .
Here is the section from legislation.gov.uk/ukpga/2007/5/part/1/2008-03-18
3)In this section—
“pension payment” means—
(a)
a periodical payment made in relation to a person under a personal pension scheme or, in connection with the coming to an end of an employment of his, under an occupational pension scheme or a public service pension scheme,
(b)
a payment of a prescribed description made under an insurance policy providing benefits in connection with physical or mental illness or disability, and
(c)
such other payments as may be prescribed;
“PPF periodic payment” means—
(a)
any periodic compensation payment made in relation to a person, payable under the pension compensation provisions as specified in section 162(2) of the Pensions Act 2004 (c. 35) or Article 146(2) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (the pension compensation provisions), and
(b)
any periodic payment made in relation to a person, payable under section 166 of the Pensions Act 2004 or Article 150 of the Pensions (Northern Ireland) Order 2005 (duty to pay scheme benefits unpaid at assessment date etc.).
One other thing if your user name is your personal email address I would change it as per link below.
benefitsandwork.co.uk/guides-for-claimants/faq/forum
David
No taking a pension lump sum does not affect Conts Based ESA. The ESA regulations clearly state that only " periodic payments " cause deductions .
Here is the section from legislation.gov.uk/ukpga/2007/5/part/1/2008-03-18
3)In this section—
“pension payment” means—
(a)
a periodical payment made in relation to a person under a personal pension scheme or, in connection with the coming to an end of an employment of his, under an occupational pension scheme or a public service pension scheme,
(b)
a payment of a prescribed description made under an insurance policy providing benefits in connection with physical or mental illness or disability, and
(c)
such other payments as may be prescribed;
“PPF periodic payment” means—
(a)
any periodic compensation payment made in relation to a person, payable under the pension compensation provisions as specified in section 162(2) of the Pensions Act 2004 (c. 35) or Article 146(2) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (the pension compensation provisions), and
(b)
any periodic payment made in relation to a person, payable under section 166 of the Pensions Act 2004 or Article 150 of the Pensions (Northern Ireland) Order 2005 (duty to pay scheme benefits unpaid at assessment date etc.).
One other thing if your user name is your personal email address I would change it as per link below.
benefitsandwork.co.uk/guides-for-claimants/faq/forum
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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