C/New Style ESA vs IR ESA: what am I missing?

Hi Everyone,

I'm wondering if someone could clarify for me a couple of things.

1 - Understanding that New Style ESA is contribution based (NI contributions) but why isn't it migrated over to UC?

2 - Why is New Style exempt from income and savings limits but those who have migrated on to UC do have these limits?

3 - It seems like anyone on old-style ESA/IR-ESA and UC are in a worse off position, why not just move on to New Style ESA if one can buy pension credits, before being migrated over to UC?

What am I missing?

4 - Can people move on to New Style ESA once on UC and if so, what are the requirements other than NI contributions?

Sorry if these are dumb questions but all of this is so confusing for me. Thanks!

Hi wiggles, to answer your questions:

Q1 and 2: new style ESA is intended as a "benefit" for people who have ni contributions or credits and is therefore not means tested. whereas universal credit and income related ESA are based on a person having low means(income and capital)

Q3: universal credit is a lower amount than ir-esa however if it is not reduced by capital or income the amount is higher than new style ESA therefore it can be worth claiming universal credit as it can paid in addition to new style ESA meaning you get more benefits in total.

Q 4: you can claim new style ESA and universal versal credit at the same time, however an amount. Equal to the new style ESA you receive is deducted from your universal credit meaning you won't get more money unless your universal credit is reduced due to income or capital (new style ESA is not reduced due to income or capital so if that's a possible issue you should claim new style ESA as well as universal credit.)
To claim new style ESA you have to have enough national insurance contributions and have limited capability for work, if your recieving legacy esa it has already been decided you have limited capability for work and you should have received national insurance credits meaning you have enough national insurance contributions and should not need to buy national insurance credits.