Contribution ESA versus Income ESA

Hi everyone,

I have a question on behalf of a friend, who is in a complicated situation. We are struggling to find answers short of calling the DWP, which obviously she does not want to do.

She was formerly on Incap for severe depression and was transferred to ESA a few years ago, albeit not without a big fight. This was for Contribution-based due to the Incap. This is contrast to me - I went from Income Support to Income-based ESA around the same time for bipolar illness.

She then no longer qualified for ESA payments at all due to changes in her partner's income/pensions etc., though she continued to have an entitlement to it on paper. Instead, she received Carer's Allowance as the partner has significant physical disabilities including osteoarthritis, which worsened in recent years.

Recently, her partner has decided to split with her, so she is currently looking to move out with her sixteen-year old daughter for whom she also receives the standard Child Benefit and Tax Credits.

I have been able to tell her that both Carer's and ESA entitlement mean her NI contributions are paid automatically by the state. However, I have no idea whether or not she should now be applying for ESA on Contribution or Income grounds once she and her partner have separated officially (i.e. she finds somewhere to rent), which of course is when she will stop being paid Carer's for him. After this, the payments for her child will be her only income.

Can anyone shed any light on this? Thanks to this site and its guides, I am now well-versed in the application and appeal process for both ESA and DLA, but this situation falls outside of my understanding. As stated above, I have never received Contribution-based myself and not sure how it works except that it only lasts a year before most people have to apply for Income-based/something else. Obviously this situation is more complex and nuanced than that.

Thanks for reading.

Hi Um,

People who were on IB, which was a contributory benefit, were switched to contributory ESA. People who were on IS, which was an income related benefit, were switched to income-related ESA.

Contributory ESA is payable for only 365 days for claimants who are not in the Support Group. After this time they will be assessed for income-related ESA. Payment will recommence if the claimant is placed in the Support Group at a future reassessment. While no payment are made, NI credits will still be made towards the State Retirement Pension but these do not count towards future contributory benefits.

New claims for contributory ESA can be made only if the claimant has amassed enough NI payments in the previous 2 full tax years before the claim is made. The NI credits given when on contributory benefits do not normally count towards this, hence the claimant must have worked, and paid NI, during this time.

If your friend's ESA claim remains open she should contact DWP and ask for an ESA3 which will collect details of her financial situation.

If the ESA claim has been closed (and I suspect it may have been in order to claim CA) she will have to make a new claim for income-related ESA and, again, DWP will need to know full details of her financial situation.


If this has not answered your question, or you have new ones, please reply to this message and we will do our best to help

Um, there is a relaxation of the NI rules for people who have been claiming carer's allowance. It is explained in this post -

www.benefitsandwork.co.uk/forum?view=topic&catid=10&id=106053

You have clarified one or two issues I was struggling to find answers for elsewhere, so thank you from both of us. It certainly adds to my understanding of NI credits versus payments.

From what I can gather, then, the next step is to find out if her claim remains open - and from what you've written, unlikely due to receipt of Carer's in the last couple of years - and proceed from there once the separation is official?

In any event, I've now texted her and asked her to call me, and will read this out over the phone in full when she does (we do not live in the same town). I will come back with any additional queries as suggested - much obliged.

And in general, thanks to everyone here who puts in so much effort to help people in our shoes. I have been a member on and off for maybe four years now (previously under a different moniker), and the information provided has proved utterly invaluable, both during my own reassessments/tribunals etc. and those of a couple of friends I've since helped through theirs.

Have just replied to your first post, Mrs. HB, then saw the second - thanks again. I will read through now.