ESA and occupational pension

I’ve just received the letter from DWP asking about the yearly increase to my teacher’s pension.

In previous years I have always given them Teachers’ Pensions (TP) address as at this stage I don’t know what the increase will be. However I’m wondering if my ESA has been wrongly calculated due to the information that DWP has been given by TP.

It appears that TP has given my gross pension rather than my net income. I know ESA is reduced by 50p for every £1 you receive over £85 but does anyone know if that is based on gross or net income?


Sarah x

It’s okay, I’ve found that it is based on your gross income, so no rebate for me!

Oh yes Gross income they even deduct for money we pay in tax it’s my biggest bugbear.

Jan x

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If you were on the top rate of DLA before the change from IB to ESA they couldn’t touch your pension, as grandfather rights were granted.


Ronin, I have been on the top rate mobility component of DLA for about six years. I only started claiming ESA just over a year ago I guess that means no grandfathers right for me.

Jan x

Hi Jan,

I think if you’re on highest rate of both mobility and care for DLA, your ESA is not touched. If not, then they start deducting ESA

given as described above. It all seems rather arbitrary to me- private pension is what you have earned through your working

years, why should you be punished for it? I went through this battle with DWP for years. Now they load my private pension

with tax, because DWP are unable to tax ESA at source, even though they are in the same government division as HMRC.

Daft! Dawn

Oops sorry! I meant Sarah, not Jan. X

I didn’t know that but I’m on middle rate care so it wouldn’t effect me. I know what you mean about the tax though, it’s really annoying and daft!

Sarah x