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this is the best i could find, clear as mud maybe, but it goes through it helps, all the best, i phoned them up and was told the leaflet about reporting changes was put in uprating letter by mistake, i only need to report if my condition changes my pension increases or i gain employment for example, contribution based has always meant non means tested, unless the rules changed and no one told me, leaflket went in bin,





Employment and Support Allowance (ESA) – contributory or income-related?
Background

Employment and Support Allowance (ESA) was introduced on October 28th 2008 as a replacement both for Incapacity Benefit and also for Income Support for those who claimed because of sickness or disability.

Anyone already in receipt of one of the above benefits on 27/10/2008 continues to receive them until they are “migrated” to ESA (and although it is many years since this change there do still seem to be some people who have not yet been “migrated”).

ESA is awarded in two different ways: Contributory ESA and Income Related ESA.

Contributory ESA is linked to the past payment of National Insurance Contributions in the same way that Incapacity Benefit was, (except for those with limited capacity for work who claim before the age of twenty). It is income in full for DFG means-testing purposes. Contributory ESA is often referred to by the DWP these days as “new-style” ESA – this seems to be because no new claims can now be made for means-tested ESA.

Income Related ESA is a replacement for Income Support paid as a result of incapacity and is therefore a “passporting benefit” for DFG means-testing purposes.

Those conducting the means-test are often confused as to which form of ESA is being awarded by the bizarre letters sent by the DWP.

The following points may be helpful in deciding which form is in payment.

There are various hoops to jump through when claiming ESA. Any claimant enters a 11-week assessment phase where an assessment is made as to work capability. This test is similar to, but stricter than, the test formerly applied to Incapacity Benefit claimants.

Once incapacity for work has been proved a claimant is in “main phase” ESA. Anyone who has a very limited capability will go into the support group whilst those whose capability is less limited will enter the work related activity group.

Those who receive Contributory ESA and who are in the work related group can only receive ESA for a year. After that their entitlement ends.

Those who receive Contributory ESA and who are in the support group can continue to receive ESA until they reach state pension age.

Rates in payment

The basic rate of ESA is £84.80 pw. This will be the rate paid during the assessment phase.

There is an addition of £33.70 pw payable to those in the work related group. However, this was abolished for new claimants from April 2017. Only those who were in receipt of this addition at that date and who continue to satisfy the rules can receive it. However, as noted above, those in this group in receipt of contributory ESA only got ESA for one year. So if a customer receives £118.50 pw (£84.80 + £33.70) we know that this can now only be an award of income-related ESA.

There is an addition of £44.70 pw payable to those in the support group. In income-related ESA, as for DFG means-testing, receipt of this support “component” entitles the customer also to the Enhanced Disability Premium of £19.55 pw. That premium only exists within the means-tested form. It cannot be paid as part of contributory ESA.

So if a customer is in the support group and receives £129.50 pw (£84.80 + £44.70) we know that they are in receipt of contributory ESA.

It also follows that if a customer is in the support group and receives £149.05 pw (£84.80 + £44.70 + £19.55) we know that they are in receipt of income-related ESA.
Working partners

If a customer has a working partner it is almost impossible for them to be receiving income-related ESA. There is a “statute bar” preventing them receiving income-related ESA if their partner works 21 hours per week or more. In practice it is highly unlikely that anyone with a partner in “full-time work”, 16 hours per week for most benefits purposes, would receive the means-tested form, simply because their income would be too high to qualify.
Couples and single people

Contributory ESA is described as a “personal benefit”. This is the justification for not paying dependant’s increases in respect of a partner, which was possible under Incapacity Benefit. Conversely, those claiming income-related ESA can be paid it as a couple. The personal allowance for a couple is £133.30 pw. Any award letter that refers to a couple rate of £133.30 pw actually being in payment to the couple therefore can relate only to an award of income-related ESA.
Disabled young people

Following the introduction of ESA in 2008 disabled young people, in receipt of DLA or PIP, could claim contributory ESA from the age of 16 albeit that they had not met the contribution conditions. They would need to provide a medical certificate from their GP. They could receive ESA even if they were in full-time education. This continued a similar rule which had applied to Incapacity Benefit.

This provision was ended in May 2012. However, young people in this group can still claim Universal Credit in these situations (provided they receive any element of DLA or PIP and can provide a medical certificate). Receipt of UC in this situation excludes receipt of Child Benefit.

So someone in this situation may be passported to a full grant if they are a qualifying young person as their parents receive Child Benefit for them.

Alternatively, if they are receiving UC they will be passported to a full grant as they are in receipt of a passporting benefit.

It is the same end result, in neither case will there be a means-test or any assessed contribution, but for paperwork purposes it may be important to be clear as to which category the young person falls into.
Effect on premiums

The effect on premiums within the DFG calculation is as follows:

Being in “main phase” cESA entitles the customer to a disability premium.

Being in the support group for cESA also entitles the customer to an enhanced disability premium.

Rates

It is therefore possible, in some but not all cases, to determine whether we are dealing with the contributory or means-tested forms of ESA simply from the amount in payment:

2023-2024 Rates used

Amount payable Situation Contributory or
means-tested?
£149.05* Single person in support group with enhanced disability premium Means-tested
£118.50 Single person in work-related group for more than a year Means-tested
£133.30
(the couple rate) Couple rate is part of the assessment Means-tested
£129.50 Single person in support group Contributory
£225.45** Single person in support group with enhanced disability premium and severe disability premium Means-tested
* This could all be means-tested ESA or it could be £129.50 contributory ESA “topped up” by the enhanced disability premium of £19.55. In either case the customer is receiving means-tested ESA.

** This could all be means-tested ESA or it could be £129.50 contributory ESA "topped up" by the enhanced disability premium of £19.55 and the severe disability premium of £76.40. In either case the customer is receiving means-tested ESA.

Hello

I have been receiving contributions-based ESA since November 2023.

I have just been informed that I have been placed in the Support Group, following a work capability assessment.

I understand the CB ESA is not means tested, however I have received confusing information from the DWP: one letter saying that my CB ESA would end after 365 days (this is before I was placed in the support group). Another is a leaflet sent with my Support Group decision letter saying that I have to tell them if my circumstances change, including if my savings go above £6,000.

I know that CB ESA is not means tested, but is this *definitely* the case after 365 days? I can’t find any official info online confirming this. Does anyone have the relevant official info / a link I could look at?

Many thanks indeed.

Hi,

I have had a letter out of the blue saying they can no longer pay me esa , saying the same not enough NI contributions , saying based on years the same as yours , odd thing is been getting esa over 8 years and nothing in the letter to say about another benefit I could go to. Did you sort yours out ?

Thanks
Sean

Hi Labrador

As you are in the support group when you apply for UC you should be placed in the LCWRA group, sometimes a workcoach states that you need to provide a fit note, this is not correct.

Nearly all applications are made online, although there are exceptions such as telephone applications and home visits, if in doubt, contact the UC helpline 0800 328 5644

When you apply for UC, you usually have to make an appointment to see a workcoach and sign a claimant commitment, signing the claimant commitment starts your UC claim.

he conditions for claiming Universal Credit are set out in a "claimant commitment" that most people will have to accept at the beginning of their claim. If you are part of a couple, you will each have a separate claimant commitment that may be different from each other's.

People who may not need to accept a commitment include those who lack capacity, those who have exceptional circumstances  where it would be unreasonable to expect them to agree a commitment (this is decided by the work coach on a case by case basis), or, From 15 February 2022 people with a terminal illness and less than 6 months to live were also excluded, and from 4 April 2023 this was extended to 12 months.

There are 4 conditionality groups:

* Group 1. No work related requirements
* Group 2. Work-focused interview requirement
* Group 3. Work preparation requirement
* Group 4. All work-related requirements

www.entitledto.co.uk/help/Claimant-commitment-Universal-Credit

Gary

L

If you are receiving legacy ESA, which I doubt from your claim date, then you need to contact the DWP and ask for an ESA3 form to be sent which will capture the information needed for the IR component to be paid.

If, as I suspect, you are actually receiving New Style ESA, then there is no Income Related component.

You can claim Universal Credit, your existing ESA award will be included in your UC claim but the NS ESA will be deducted.

As to informing the DWP of a Change of Circumstances, you are already receiving the highest rate of ESA and/or UC for disability or illness.

You do need to inform them of the address change.

All that will happen is that you will have to go through a re-assessment process, which at the moment you may wish to avoid, especially if you are also claiming PIP.

Gordon

h

You will have to overcome three hurdles.

First, you must be working less than 16 hours and earn no more than £167.00 each week, after tax and National Insurance has been taken off.

Second, You must be able to meet the Contribution Conditions; at least 26 hours of NI Contributions in one of the two Tax Years 2021-22 or 2022-23 AND at least 50 weeks of NI Conts or NI Credits in both of the two Tax Years.

Lastly, you need to qualify for an award. See our ESA/UC Claim guide by following the Guides link at the top of the page.

You can also apply for UC which would avoid the Conts Conditions but not the other two.

Gordon

D

ESA will also consider your earnings you will need to earn no more than £167.00 each week, after tax and National Insurance has been taken off

You can claim New Style ESA as long as you can meet the Contribution Conditions, in simple terms you will need 26 weeks of NI Contributions in one of the Tax Years 2021-22 or 2022-23 AND at least 50 weeks of NI Conts or NI Credits in both of the Tax Years.

Alternatively, you can claim UC which does have these requirements.

In both cases, present a Fit Note to be put forward for the Work Capability Assessment. You can find the criteria you will need to meet in our ESA/UC Claim guide, follow the Guides link at the top of the page.

While you wait to be assessed you will be excused from seeking work. this will continue, for a year if on ESA and until reassessed for UC, if you meet the lower test of Limited Capability for Work and until reassessed for both if you meet the higher standard of Limited Capability for Work Related Activity.

Gordon

Hi Lyndsay

No, you will not have to re-apply for CB ESA when you submit your UC claim, if you are in the support group then you should transfer over to LCWRA. Your CB ESA will be deducted £ for £ from your UC.

Remember ESA is paid fortnightly whereas UC is paid monthly.

Gary

Hi Lyndsay

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

What is happening is that tax credits are going (working + child), claimants are being asked to apply for UC once they get the letter from DWP inviting them to apply for UC, not the letter from IR informing you that your tax credit is stopping.

Your ESA will stay in payment, the amount you get for ESA will be deducted from your UC £ for £. One of the advantages for staying on ESA is that you get paid every two weeks whereas UC is paid monthly.

You should be placed in the LCWRA group when you apply, remember DWP can re-assess you at anytime.

I would advise you to seek help from your local Welfare Rights Organisation; advicelocal.uk , they will be able to give you accurate advice taking all your circumstances into consideration.

Gary

HI,
i have been on ESA contributions based, (in the support group for many years). I also claim the Adult Disability payment as im in Scotland.

I have been told to move onto Universal credit. I claim Child Tax Credits, and my husband claims Working Tax Credits. Im totally confused as what happens regarding my ESA with regards to UC.

Do i have to start a new claim for ESA (ive heard of this New ESA, but i dont really know what its about).

Do i need to have a new physical assessment for ESA?

Im utterly confused re the ESA contributions based/support group bit. Can anyone clarify what i have to do? Many thanks.

Good Afternoon,

I wonder if you can please help me with a question.

I am on the old-style National Insurance Contributions Based ESA. It is my understanding that this is not income or savings related.

I recently read in a general information booklet about ESA from the DWP(ESA Reporting Changes - ESACOC 05/23) that all changes in income and savings/assets/capital should be reported to the DWP. Can you please enlighten me as to whether this is just for the Income-based ESA benefit, as I have always understood that the NI Contributions Based ESA is not dependant on income, savings, interest on savings, etc.

With many thanks for your advice.

Hi, I’m currently on UC and LCWRA and I am due to reach State pension age in 2 months time, I have already been notified by the DWP that my UC will stop but there was no mention of the LCWRA.
As I don’t have quite enough years of NI contributions to qualify for the Full New state pension I have already applied for pension credit and have also just sent off PIP application forms.
Will my LCWRA continue after state pension age? and is it dependent on either my pension credit application being successful? or being awarded PIP? and if so would I have to be awarded high rate? as I think I will be lucky just to be awarded the standard daily living rate.
Thank you.

Hi NeRd666

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

Short answer to your question, disability premiums are only paid with IR ESA, some claimants can get both IR ESA and CB ESA but it depends on their circumstances.

You cannot just move to CB ESA, to be eligible to claim CB ESA you have to meet certain qualifying conditions.

New Style ESA is a Contribution Based benefit and is not means tested with the exception of pension income which can reduce the amount that you receive.

There are two Contribution Conditions that you need to meet for a new claim for New Style ESA.

Both are based on the two Tax Years preceding the current Benefit year, for 2023 they are 2020-21 and 2021-22.

The Second Condition requires a minimum of 50 weeks of either NI Contributions.

The First however requires a minimum of 26 weeks of NI Contributions in either of the two years, your current claim does not provide these, Contributions can only be acquired through paid employment, there are some exceptions but you don't mention any of these in your post.

Gary

Dear Moderator,

I have recently had my ill-health tier 1 pension application accepted. As a result, this wipes out the contributions based new style ESA payment.

Currently, I am able to get tax free childcare because of ESA and in April the government are rolling out 30 hours free childcare.

On the government website, it states that I will be get class 1 national insurance credits. Would you happen to know whether it is this that classifies me as working?

I appreciate that this is a pretty niche inquiry.

Kind regards

Hi Mr Roy

State Pensions are now paid to the individual at £203.85 pw providing you have paid enough contributions, it is called New State Pension, some claimants will get a higher amount others may get a lesser amount.

To be eligible to claim a State Pension you have to apply, you can apply up to 3 months before you reach state pension age.

Some claimants who receive less than £203.85pw may be able to claim Guarantee Pension credit to top up their State Pension. We would advise you to seek help from your local Welfare Rights Organisation to make sure you are getting all your benefit entitlements; advicelocal.uk

Gary

K

It is not enough to have worked for at least six months in either of the two Tax Years, she needs to have paid Class 1 NI Contributions, there are two limits for National Insurance; the Lower Earnings Limit (LEL) and the Primary Threshold (PT).

Below the LEL (£123/week for 2022) no NI is collected above the LEL and below the PT (£242 for 2022) Class NI Credits are paid and above the PT Class 1 NI Contributions are paid. Also, If she worked multiple jobs, the LEL and PT apply to each job individually, even if her total wages exceed the PT she will not receive Contributions unless one of the jobs also exceeds the PT (hope that makes sense).

So, your wife would have had to earn more than £242/week to have collected the necessary NI Contributions.

The Tax Years for the calculations of the two Contribution Conditions are set by the Benefit Year, this is defined as starting on the first Monday in the calendar year, the Tax Years are the two full Years preceding the Benefit Year.

The Benefit Year for 2024 started on Monday 8 January and the Tax Years changed to 2021-22 and 2022-23.

The Tax Year starting in April 2023 will not be looked at until the beginning of 2025.

If your wife has the necessary Contributions in the Tax Year 2022-23 then she can ask the DWP to look at her claim again based on the new Tax Years.

Gordon

I applied for UC in May and was awarded LCWRA in August. Prior to this I had disabled element of WTC plus P/T earnings. My SSP has finished and my employment was terminated. I found it overwhelming completing the UC50 form etc and wondered if I now apply for NS ESA to maintain NI contributions for my pension whether I will have to go through whole process of filling in more WCA forms or because my LCWRA award was so recent that this would be enough to avoid more forms and assessments?

My wife has just received a letter saying that they cannot pay ESA from 5 Jan 2024 due to not paying or credited enough NI Contributions when looking at years 5 April 21 and 5 April 22.

Looking at her NI contribution record it says that she has 52 weeks national insurance credit for both years, and in 21 paid employment contributions of c.£105, and in 22 paid contributions of c. £1k.

Looking at other posts it seems that she needs to have 2 years of credits (met) and 26 weeks of employment contribution. In 2022 she worked for 6 months, so I would assume that this is also met however I cannot see the breakdown in the contribution records.

Does anyone know how I can get the breakdown of weeks paid etc? Also, why is 2022 and 2021 being looked at from 5 January onwards? When does 2023 start being looked at (in which she worked 7 months)?

The letter has no information on what happens next, details on why its been refused. She will not be able to work for some time due to ill health, so does she have to start a new claim when 2023 is included? I have no idea where to go with this really.

Thanks

Lizzie

I have a relative who is a carer and has been caring for quite a few years. The relative has never claimed anything other than Carers Allowance. The relative I believe has savings that would not allow Income Based benfefits, but could this relative claim a Contribution Based benefit due to having NI contributions paid via Carers Allowance? Also do Contribution Based benefits only last a year?

Dear Mods,

This query follows on from those of May.

I reported that towards the end of May that I’d received a reply from the DWP and found, to my surprise, that I am entitled to contribution-based ESA as explained here:

www.benefitsandwork.co.uk/employment-and...upport-allowance-esa

About a month ago, I received a duplicate of the above letter. Only the dates were different. It reiterated what was said in the letter of May. However, it set me thinking. Am I really entitled to contribution-based ESA?

I’ve been very disabled from an early age. I’m in the Support Group and get PIP at the highest rates for both components.) Since a small number of voluntary NI contributions in the 1990s all NI credits have come via the old Severe Disablement Allowance and IR-ESA.

Obviously, I don’t want to get into a mess with the DWP.

On a related matter, will contribution-based ESA claimants be compelled to claim UC? As stated, in previous posts, I am not entitled to means-tested benefits or services.

Thank you,

Mari W