ESA & Pension

[nancyspain]

Hi I have been on sickness benefit since 1989 and have recently been changed to esa. I have been in receipt of a company pension since that date also as I was retired due to ill health. The 1st benefit I received back then was invalidity benefit which as far as I know wasn't means tested, I was then changed too Incapacity Benefit & now ESA. I received a phone call during the week the 'Case Intervention Team' asking different questions about my income. I told them I was only in receipt of a pension ( of course they already Knew this that's why they phoned) they were quite rude about it telling me the onus was on me to inform them of any changes in circumstances. I honestly thought that because my pension didn't affect Invalidity Benefit it was the same for the other benefits I was changed to. They have now sent me a letter asking for last years P60. Could someone please advise as I am worried sick about this.

[antone]

Hi there. I'll move this to the Benefits Forum where you should get more replies.

[dogboneday]

Hi I have been on sickness benefit since 1989 and have recently been changed to esa. I have been in receipt of a company pension since that date also as I was retired due to ill health. The 1st benefit I received back then was invalidity benefit which as far as I know wasn't means tested, I was then changed too Incapacity Benefit & now ESA. I received a phone call during the week the 'Case Intervention Team' asking different questions about my income. I told them I was only in receipt of a pension ( of course they already Knew this that's why they phoned) they were quite rude about it telling me the onus was on me to inform them of any changes in circumstances. I honestly thought that because my pension didn't affect Invalidity Benefit it was the same for the other benefits I was changed to. They have now sent me a letter asking for last years P60. Could someone please advise as I am worried sick about this.

 

Pensions have a nasty habit of reducing the ESA payments even for those that are claiming on a contribution basis!

[nancyspain]

Has anyone any idea when incapacity benefit became means tested?

[debt4get]

as far as i know its always been like that!! i know i had to declare my pension when i retired early with ill health, moving onto esa if you have any income expect to lose that money against esa payments, unless contributory payments which will only be paid for a year exactly...you can work out roughly what you will get with the website turn2us and inputting all the figures

[Nystagmite]

Has anyone any idea when incapacity benefit became means tested?

 

It never has been. If you were on a low income and hadn't paid enough NI, you were put on income support for reasons of incapacity.

[debt4get]

i know when i claimed ib i had to declare any other income...though it didnt actually affect my ib...however as we all know esa is a totally different animal

[antone]

i know when i claimed ib i had to declare any other income...though it didnt actually affect my ib...however as we all know esa is a totally different animal

 

It is possible to claim only ESA©, which is the nearest equivalent to the old Incapacity Benefit. As noted, IB was contributory, and if you didn't meet the conditions you'd be considered for Income Support based on incapacity. However, the claim process for ESA means that most people end up applying for both ESA© and ESA(IR).

 

My recollection is that first £85 per week of occupational pension income is ignored for ESA©, then 50% of any amount above that is fully taken into account. For ESA(IR) the full amount (net of tax) is taken into account and deducted pound for pound from benefit payments.

 

Nancyspain, it does sound like an honest mistake, but it may be the case that your pension might affect your benefit entitlement. You should make a full declaration of this ASAP.

[**Margaret**]

:nancyspain:

 

Cos incapacity benefit is/was based on national insurance contributions we don't think of it as a means tested benefit but it's been 'means tested', for new claims, since April 2001. From Government archives;

 

http://webarchive.nationalarchives.gov.uk/+/www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10016082

 

Continual claims/linked claims for invalidity/incapacity benefit since pre 6 April 2001 have transitional protection from deductions of employment n support allowance cos of pension income, so your occupational pension shouldn't affect your benefit entitlement at the point of conversion. Might affect your tax liability. Contribution based employment n support allowance is taxable (conversion awards of incapacity benefit weren't), which is probably why they want the P60.

 

From what you've written your only 'crime' is not declaring a non-existent change of circumstances. The claim form for invalidity benefit didn't ask about pension income. Neither, circa 2000, did Jobcentreplus send the notes sheet (page 6) to existing claimants;

 

http://www.dwp.gov.uk/advisers/claimforms/sc1_print.pdf

 

Shouldn't worry too much. From what you've written, there's no fraud or overpayment.

 

Best wishes, Margaret.

Edited April 2, 2013 by **Margaret**

[nancyspain]

Thank you for all replies I hope you're right Margaret don't fancy having to pay a lot of money back.

[jabba jones]

Yes Starryeyes info is correct, Occ Pens only affect non linking IB claims made after 6/4/01. Unfortunately some less experienced staff may not be aware of this.

 

I'm not sure if that transitional protection carried over to ESA though.

[**Margaret**]

:Reassessment of incapacity benefits:

 

'where people who are eligible for ESA receive more on existing incapacity benefits than the appropriate ESA rate, their existing rate of benefit will be protected at the point of conversion'

 

http://www.dwp.gov.uk/docs/ib-reassessment-information-pack.pdf

 

Tisn't exactly crystal clear from Government literature, but two claimants in my self-help group (one had an original claim for invalidity benefit, the other a late 90s claim for incapacity benefit) now have conversion awards of employment n support without deductions for pension income.

 

Not sure about the 'transition will run smoothly for all claimants' bit. One got told initially, that linking between benefits wasn't allowed and the other's just been asked for a Med 3 (unfit) note.

 

Onward n upward, Margaret.

Edited April 3, 2013 by **Margaret**

[stigofthedump]

Hi, I know this is an old thread but I am looking for advice.

 

I was recently awarded ESA contributory in support group - rang DWP and they would not tell me the length of award and refused to send me the decision details as they said it was only needed for appeals. the added I could be reviewed at any time. Anyway after a chat with old work director and pension advisory service, I approached my former employer RBS about an ill heath pension. Emailed them a copy of my ESA50, award letter, consultants letter and to my surprise got an email today saying "Your application for ill health has been approved and a retirement quotation will be sent out to you by the end of this week". I was told that the RBS final salary scheme pay out on ill heath grounds as if you had worked till 60.

I have searched the internet and read the comments on this site but I am confused what happens to the ESA claim/award if I go ahead and take up the pension which could be worth anything from £250 up to £400 a week depending if there is a lump sum option. (based on my 2012 pension forecast)

I do not want to ask the DWP given they where unhelpful with the ESA award and my local CAB are unable to assist as they are swamped with other ESA & Benefit claims which I fully understand. Had I known the pension option was there 8 years ago I would have not gone through the ESA stress.

Any guidance would be appreciated

regards

Stig

[stigofthedump]

Hi, I know this is an old thread but I am looking for advice.

 

I was recently awarded ESA contributory in support group - rang DWP and they would not tell me the length of award and refused to send me the decision details as they said it was only needed for appeals. the added I could be reviewed at any time. Anyway after a chat with old work director and pension advisory service, I approached my former employer RBS about an ill heath pension. Emailed them a copy of my ESA50, award letter, consultants letter and to my surprise got an email today saying "Your application for ill health has been approved and a retirement quotation will be sent out to you by the end of this week". I was told that the RBS final salary scheme pay out on ill heath grounds as if you had worked till 60.

I have searched the internet and read the comments on this site but I am confused what happens to the ESA claim/award if I go ahead and take up the pension which could be worth anything from £250 up to £400 a week depending if there is a lump sum option. (based on my 2012 pension forecast)

I do not want to ask the DWP given they where unhelpful with the ESA award and my local CAB are unable to assist as they are swamped with other ESA & Benefit claims which I fully understand. Had I known the pension option was there 8 years ago I would have not gone through the ESA stress.

Any guidance would be appreciated

regards

Stig

 

Just wanted to add, I don't want ESA if I get the pension so I never have to face or deal with them again

[antone]

Just wanted to add, I don't want ESA if I get the pension so I never have to face or deal with them again

 

If you don't want ESA then it's pretty straightforward. Once your pension is in payment, simply contact the DWP to close the ESA claim.