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Unexpected New Style ESA claim during UC migration

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1 week 3 days ago #309990 by Adam
I'm an appointee for my mum. She's in the process of managed migration from IR-ESA to UC, which I'd thought was relatively straightforward. However, I've received a letter saying her contribution-based ESA will change to new style ESA, and a note in her new UC journal saying the DWP's records show she's getting ESA. I'm confused, as I'd thought UC would be entirely replacing ESA for her, and I hadn't explicitly applied for New Style ESA.

In case it's relevant, she was in the support group for ESA for several years, and receives the higher rate for both components of PIP. She currently has around £8000 in her bank accounts, a significant proportion of which is thanks to a PIP back-payment, but I know she'll be considered to have income from that money if she hasn't spent it within a year after receiving the payment. Her first UC payment should be later this month. The DWP haven't yet said how much it will be, but I'm expecting her to get some benefit from transitional protection.

I can't work out what has triggered the New Style ESA claim, whether it's a problem, and whether I need to do anything about it.

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1 week 3 days ago #309991 by David
Hi Adam

Most people receive Contributions Based ESA with an Income Based ESA top up. It is the latter that will change to UC after Migration. She will carry on getting fortnightly payments of Contributions Based ESA which is now termed New Style ESA. The top will then be from UC which is paid monthly.

As far as the £8000 is concerned it is only the £2000 above the £6k limit that will cause a deduction. You need to check the letter that came with the PIP backpayment to see if the entire sum is not disregarded.

Let me know how you get on.
David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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