New style ESA and paying into work pension

gemini4378

Hello, I would like to claim new style ESA, I work 15 hours a week due to disability and my take home pay is £165 which meets the criteria 

But on the website it says I can earn up to £167/week after NI and TAX but no mention of any other outgoings like pensions or student loans. So if it's just after NI and TAX then I can't apply as I pay into a work pension and if they include my payments into my work pension as take home pay then I earn too much.

Does anyone know if they consider pension contributions/salary sacrifice as take home pay? Even if it's not? 

Thank you

Jimm_Scope

Hi @gemini4378! Sorry nobody has responded to you, as I have found out myself there does not seem to be an amazingly clear answer on this! 

EDIT: Please read Poppy's post below this one for something that is an actual answer.

I tried to find myself an answer and I honestly struggled. My assumption is that pension contributions are usually pre-tax. However, the DWP specifically says "earned income" not "take-home pay".  Honestly I think it's a question you may have to ask the DWP directly or citizens advice may have a better idea. I'm afraid I'm not a benefits expert as much as I'd love to have found the answer for you!

Here is information on the different ways you can contact Citizen's Advice. Contact us - Citizens Advice

poppy123456

They will take into consideration half of any payments into a pension, so for example, if you pay £10/week into a pension then £5 of that will be added onto your weekly earnings amount. 

Salary sacrifice and student loan repayments are not an allowable deduction. Therefore if your weekly earnings are more than £167/week when all of those are added back on then you won't be able to claim New style ESA.

Have you used a benefits calculator to check entitlement to Universal Credit? https://www.entitledto.co.uk/benefits-calculator If it shows entitlement and you're currently claiming a disability benefit such as PIP/DLA or ADP then you'll be able to report your health condition, supported by a fit note to start the work capability assessment process off.

If you're not claiming a disability benefit then earnings of more than 16 x NMW/week will mean you won't be able to be referred for the work capability assessment.

Jimm_Scope

I always appreciate you bringing your knowledge to these threads poppy, I'm still getting to grips with a lot of the intricacies of the benefits system. 

You'd think they wouldn't make it so opaque.

poppy123456

Jimm_Scope said:

I always appreciate you bringing your knowledge to these threads poppy, I'm still getting to grips with a lot of the intricacies of the benefits system. 

You'd think they wouldn't make it so opaque.

Thanks Jimm, yes it's a minefield!