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Confused about IB/ESA/Means testing

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13 years 10 months ago #42364 by Lavender
Replied by Lavender on topic Re:Confused about IB/ESA/Means testing
I am currently on IB and my benefit is reduced because I am in receipt of an occupational pension. As I understand it - if I am placed in the WRAG I will not get any ESA because it will be means tested and my occupational pension and my husbands salary will be taken into account.

However if I get into the support group (I can hope!!) - is the ESA also means tested and/or any reductions made for occupational pension?

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13 years 10 months ago #42370 by Gordon
Replied by Gordon on topic Re:Confused about IB/ESA/Means testing
Daisy

We expect most IB claimants to be moved to Contribution Based ESA if successfully transferred.

ESA(CB) will be available for a year from the date of transfer, for members of the WRAG, after which they will be eligible for Income Related ESA, subject to a means test.

There are other differences between CB and IR other than the means test. CB is liable for tax and has a £85/week disregard for pensions, above this limit, there will be a deduction of half the excess.

So if your pension is £100, then the excess is £15 and the deduction will be £7.50.

Hope this explains it.

Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems

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13 years 10 months ago #42378 by Lavender
Replied by Lavender on topic Re:Confused about IB/ESA/Means testing
Thanks Gordon

So CB ESA is top sliced for occupational pensions irrespective of whether you are in the support group or the WRAG?

Hope you have a good weekend :)

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13 years 10 months ago #42427 by sheleo
Replied by sheleo on topic Re:Confused about IB/ESA/Means testing
This is a long shot: I've been on IB since 1998 and paid tax on it from the beginning but haven't been subject to any penalty because I receive an occupational pension. The 50%/disregard rules etc., only applied to new applicants when this rule came in.Under the changes, I will lose all ESA (but not my disability!) if put into the ESA WRAG CB group BUT isn't there supposed to be some transitional allowance in the short term so people aren't immediately worse off? or have I completely misunderstood? Thanks.

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13 years 10 months ago #42438 by Gordon
Replied by Gordon on topic Re:Confused about IB/ESA/Means testing
sheleo

The Government have put in place rules that will ensure the IB claimants sucessfully transferred to ESA recieve at least as much as they did before, although there may be exceptions.

The key point here, is that it will only apply to those who are re-assessed and have passed the ESA WCA as having Limited Capability to Work.

Hope this explains it.

Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems

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  • Cheekymelky
13 years 9 months ago #43986 by Cheekymelky
Replied by Cheekymelky on topic Re:Confused about IB/ESA/Means testing
I currently get IB and DLA and a PHI amount of 1090 monthly from my old employer. If I am lucky enough to get into the support group will I get any ESA? I am a lone parent of a 15 year old going through a divorce so this couldnt have come at a worse time in regards deciding what income I will have left for mortgage, bills etc.

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