Treatment of deferred state pension for ESA

Hi I am looking at mixed age couples where the youngest member is the main claimant of ESA or IS. 

I just spoke to one client who has not claimed his state pension because he knew he wouldn’t be any better off, he is getting carers allowance for his wife and she is getting ESA for them both. I understood that UC would treat a deferred state pension as notional income, is that the same for ESA or IS? I couldn’t find the answer any where.

At the moment they are still paying all the ESA but I just need to know whether they are going to start deducting a notional pension? I can see why he would think deferring was a better idea.

We hadn’t anticipated that retirement income - state pension plus any occupational pensions that might all start at the same time, might take the couple off the living costs ben so even though the youngest member is the main claimant they may still end up having to claim UC any way.  So we are looking at more cases than we thought at first.

This was covered recently, see Gareth’s post which states correct position, that deferring SP doesn’t generate notional income for ESA award but the SP doesn’t increase in value either.

Rod Stewart tax, deferred SRP and notional income

Thanks Paul,

but am I right that a deferred state pension is still treated as income for UC?

So my client can continue as he is with his carers allowance and avoid claiming the pension but he won’t gain anything from doing so apart from the chance to leave things as they are. Have I got that right?

p.130 of CPAG says notional income for UC cannot be applied to unclaimed benefits with the exception of retirement pension.

Also says the amount of notional income taken into account is net of any overlapping benefit so presumably if he stayed claiming CA, didn’t claim the retirement pension and they end up on UC, then it’s whatever the difference is between the two that is taken away.

Thanks again Paul,

it will be interesting seeing UC putting that in to practice!!