Hi Mike,
Hope you’re well,
I am just enquiring in relation to service users who are currently in receipt of Universal Credit with the disability premium.
There is some discussion that they are also entitled to still claim ESA. I’m not sure this is correct?
Though some individuals are adamant they get both benefits?
Many thanks for your advice and guidance.
Kind regards
Ben
Hey Ben,
There Are Two Types of ESA: Contribution-Based and Income-Related
ESA is a benefit specially for people who have Limited Capability for Work, which means a health problem or disability that puts barriers in the way of working.
Before Universal Credit arrived, ESA had two parts: contribution-based and income-related.
Contribution-based ESA is a non-means-tested benefit.
This means that there are flat rates. Your income and savings do not matter, and so long as you meet the rules for the benefit you will get a fixed amount laid down in the law*.
Like all non-means-tested benefits, contribution based ESA is an individual entitlement* You can claim cESA regardless of whether you have a partner. If you do have a partner, they make no difference to your claim.
To get cESA you must have worked and paid National Insurance in the couple of years before you made your claim.
For some people (WRAG) cESA is limited to 365 days. For other people (support group) cESA can go on indefinitely – as long as you are still ill.
Income-related ESA is a means-tested-benefit
Every claim gets its own calculation that takes your income and savings into account.
Like all means-tested-benefits, if you have a partner, you must make a claim that covers both of you*.
When you claim iESA the DWP works out a hypothetical figure for how much they think that you need to live on each week.
Then they add up your existing income.
If your income is less than your applicable amount you get a top-up of iESA.
Some people get both cESA and iESA – For example, if I had a recent National Insurance record when I became ill I might have got into cESA. But if iESA thinks that cESA does not meet my needs they might give me a top-up as well.
Some people get only iESA – For example, if I hadn’t worked in the couple of years before I became ill, I wouldn’t have the contributions to qualify for flat-rate cESA. But iESA would take my income (zero) and top-it-up to my needs-level.
Some people get only cESA – for example, if I worked before I became ill I might qualify for cESA, but my working partner meant that we couldn’t jointly qualify for iESA.
There are Two Types of ESA: New Style and Old Style
If you got your ESA claim in before UC arrived, DWP will call it old-style ESA.
You might be getting cESA or iESA or both; but because it’s an old claim from before UC arrived, DWP calls it old-style
Since Universal Credit arrived you can still claim contribution-based ESA, which DWP calls new-style ESA
It’s no longer possible to make a new claim for income-related ESA.
Instead the needs-vs-income means-tested-benefit comes through Universal Credit
Some people get both new-style contribution-based ESA and Universal Credit – For example, if I had a recent National Insurance record when I became ill I might have got into cESA. But if UC thinks that cESA does not meet my needs they might give me a top-up as well.
Some people get only UC – For example, if I hadn’t worked in the couple of years before I became ill, I wouldn’t have the contributions to qualify for flat-rate cESA. But UC would take my income (zero) and top-it-up to my needs-level.
Some people get only ns-cESA – for example, if I worked before I became ill I might qualify for ns-cESA, but my working partner means that we couldn’t jointly qualify for UC.
Not Forgetting The Premium
Universal Credit doesn’t have any premiums. They were parts of the legacy benefits.
When DWP worked out the needs level for iESA – and Income Support and income-based Jobseeker’s Allowance premiums were extra allowances to boost the applicable amount in some circumstances.
UC does have a similar thing called a Limited Capability for Work Related Activity Element for people who are in the support group
* What’s With The Asterisks?
Social security nerds may spot some slight simplifications here – but they don’t matter to subject of this post.