CBESA & severe disability premium

I have had an updated ESA letter today which shows a payment for SDP because of the PIP I was recently awarded at the enhanced rate.
I have an ill health pension so I am only entitled to contribution based ESA. The SDP has been completely wiped out by their calculation and I do not get a penny of it, so can't understand why I was awarded it if I wasn't allowed any more than the basic rate CBESA.

I have always been confused by CBESA but now am even more so? Can anyone shine any light?

Thanks

sue43 wrote: I have had an updated ESA letter today which shows a payment for SDP because of the PIP I was recently awarded at the enhanced rate.
I have an ill health pension so I am only entitled to contribution based ESA. The SDP has been completely wiped out by their calculation and I do not get a penny of it, so can't understand why I was awarded it if I wasn't allowed any more than the basic rate CBESA.

I have always been confused by CBESA but now am even more so? Can anyone shine any light?

Thanks

Hi s43,

Being entitled to a "premium" and actually receiving payment are different issues.

Being entitled to a "premium" means that the government judge that you need more income due to your disabilities.

This results in a minimum disability income guarantee, which then gives a figure (higher than the norm) for a total household income that you should not fall below.

As "premiums" can only be payed in the form of Income Related (IR) top-ups, you will be financially assessed to see whether you fall below the minimum disability income guarantee for your personal circumstances.

Any CB ESA will be classed as household income for this purpose, as will be any Occupational/Ill Health Pension payments.

Any income from DLA or PIP is not classed as household income for the IR ESA means test.

So basically they will add up all your household income, take that away from what they deem as the minimum income for your personal circumstances.

If there is a shortfall, this will result in all or part of any "premium" being paid in the form of an IR ESA top up, to make up that shortfall.

If when you are financially assessed you are not entitled to any IR ESA, then you cannot receive any or all of a "premium" even though you may have an entitlement to it.

So in some circumstances, it is possible to receive CB ESA with IR ESA top-ups, just as some claimant's are/were entitled to Incapacity Benefit (IB) (which is contribution based) with an Income Support (IS) top-up.

With respect to entitlement to IR ESA, see also :

24 hour work rule for ESA(IR)

Asset rule for ESA(IR)

bro58