ESA or UC

Shazza1

Hi I’m on SSP and been off work since 6th December. I am assuming my work will dismiss me at some point as I’m unfit to return. I’m claiming UC but read about can claim ESA. Should I apply to this or stay on UC only? So confused….

Rosie_Scope

Hi @Shazza1 I believe that anything you receive from New Style ESA is taken out of your Universal Credit payment, so it will depend on your circumstances whether it's worth applying and whether you'd be eligible. You'll need to have paid a certain amount of National Insurance contributions (or had credits) within the last 2-3 years to be eligible for ESA, but claiming it will mean that you'll get National Insurance credits that can count towards your State Pension.

There's some information about eligibility for ESA on the government website if you'd like to have a read.  There's also a table with different circumstances on it that could be useful to you

poppy123456

Rosie is correct and the ESA will be deducted in full from any UC entitlement so there's no financial gain to claiming it. However, as it's not means tested like UC is then if entitled you should definitely claim it. You never know, it may come in useful in the future. 

For ESA capital, working partner and pensions of up to £85/week are ignored. So if your UC stopped in the future due to capital over the maximum amount or you lived with a working partner with earnings over the threshold for your circumstances then UC would end but New style ESA will continue. 

For ESA you would also receive class 1 NI credits but for UC it's only class 3. 

Shazza1

Ok great thank you both