Employment and Support Allowance: Pensions

Department for Work and Pensions written question – answered on 25th November 2021.

Alert me about debates like this

Photo of Jane Hunt Jane Hunt Conservative, Loughborough

To ask the Secretary of State for Work and Pensions, what assessment he has made of (a) the impact of off-setting private pension income against income-based employment and support allowance earnings for people who have been able to draw their pension early due to ill health and (b) the potential merits of allowing people who have drawn their pension early due to ill health to retain their employment and support allowance earnings.

Photo of Chloe Smith Chloe Smith Assistant Whip, The Minister of State, Department for Work and Pensions

Entitlement to income related Employment and Support Allowance (ESA (IR)) is based on financial need and both income and capital will affect entitlement. Any pension income received is deducted from the amount of ESA (IR) payable. Cash lump sums taken from a pension savings are deemed to be capital. Claimants are not entitled to ESA (IR) if their household has capital of more than £16,000. Capital in excess of £6,000 and up to £16000 reduces the amount of ESA (IR) payable.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.