Is ESA means tested ?.

Sorry about that I wrote it incorrectly!!

Anything over £85.00 per week pension is tax at 50 pence in the pound, isn't that 50% tax?

According to my advisor, it is stated in the SSAC Regulations from January 2010. Page 4, the 6th bullet point (apologies, I have this document downloaded onto my PC but cannot remember where I got it from so cannot provide a link until I find it) states:

We will bring forward IB rules on occupational/personal pensions into ESA on conversion to protect the income of those who otherwise would see a fall in their benefit

She says there has been nothing since this was published to say different, apologies if this is not true but she is usually very good.

I think there's a confusion here between what's deducted from your ESA, and therefore taxed in that sense, and what is taxed in the sense of paying income tax. You're right in referring to 50% in relation to the amount that your ESA is reduced by. This is the high marginal rate of tax referred to by politicians such as IDS in relation to his desire to bring in universal credit.

Survivor wrote:

Found it.

www.direct.gov.uk/en/DisabledPeople/Fina...upport/esa/DG_171896

This is what the government says on its website

"Pension income rules

If you receive contribution-based Employment and Support Allowance and have a gross pension income of more than £85 a week, the amount of benefit payable will be reduced by half of the excess.

The excess is the difference between £85 and the actual pension income. For example, for a pension income of £100, the excess is £15. The amount of Employment and Support Allowance payable is reduced by half of that, which is £7.50.

If you receive income-related Employment and Support Allowance, any pension income you have will be taken into account, regardless of the amount.
"

Survivor, does that apply to migrated IB claimants though?

Fedup wrote:

There's always one awkward person who's the exception to the rule.

and his names Dave!

I am allowed to be awkward that said its important that WP know we do get some perks the other is total (in most areas) disregard of War Pension when working out council tax benefit.. mind you when its council tax benefit being allowed for a WP I did here they are looking to pass a law calling it a rebate not sure if its been done yet

I haven't found anything that says otherwise, but I can't guarantee it.