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  1. #1

    mums pension, esa issues?

    hi Just wondering if any can advise a little bit for my mum.

    shes put off taking her work pension for a few years but can't anymore. Shes worked all her life from 14, but the last number of years shes been on pip and esa due to injury at work lifting a patient as a social care worker.

    shes been given two options large lump (20k)with small monthly or small sum(10k) large month.

    If she takes the large or small sum she loses the esa and has to live off it, which will run down pretty quick. Is there a way for her to use up or move the money to stop that from happening so it can be kept?

    i know it may not be possibly just wondering?

  2. #2
    She cannot hide the money away but the capital could be spent on "reasonable" items - new washing machine, adaptions for her needs, holiday (not round the world 6 month cruise), new reasonably priced car etc. How much has she currently got in savings as some capital will only reduce her benefit. Has she taken advice on how her pension income and lump sum will affect her benefit ?

  3. #3
    thanks for replying,

    shes got 2k in savings i think maybe a little less

  4. #4
    Is your mother in receipt of her state pension?

    If not, when does she become eligible?

    PIP is not means tested.

    may help but she could get advice from a benefits adviser at CAB?

  5. #5
    It would depend on whether her ESA is contribution-based or income-based.
    If it's CB-ESA then it is not means-tested and not affected by the lump sum.
    Pension income over 85pw will however affect CB-ESA

    As xylo has said her PIP will be unaffected.

    A lump sum and the pension income would also affect her Housing Benefit (if she rents) & Council Tax reduction - so she will need to make her LA aware of her change in circumstances.

    If she isn't receiving IIDB -
    - she should make a claim asap.

    Your Q about moving the money - no, she can't do this without falling foul of the Deprivation of Capital rules (and possible benefit fraud) around means-tested benefits. Google it for more info.
    As molerat says reasonable expenditure is fine, she would be advised to keep records of expenditure if the DWP want info on why her savings have reduced after receiving (and spending some of) the lump sum.
    For IB-ESA the capital limit is 16k. Between 6k and 16k IB-ESA continues but is subject to a tariff income derived from her savings.


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