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LCWRA & New Style ESA

anotherzebra

I think I've confused myself so wondered if anyone could help clarify.

I currently get UC and a LCWRA payment after my Work Capability Assessment. I have a £404 work allowance.

I saw that New Style ESA is counting as 'income' as far as UC is concerned and this amount is taken off your UC. Does that mean after my work allowance is taken into account or not? If I am not earning anything at all, will UC take off the entire ESA amount or just the amount over my work allowance? I couldn't find any answers anywhere!

Thanks

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Kimi87

Income and work allowance are two different things.

So separate areas of your UC claim.

If you had a month with zero earnings the ESA would still be deducted in full.

anotherzebra

Thanks, I think you might have misunderstood my question.

I read that ESA is treated as income, but I think that might be incorrect information. If it were treated as income then it would only be deducted once it goes over my work allowance, right?

So basically ESA is not included in my work allowance? I am not working so I always have zero earnings, I am not including any other kind of income.

Kimi87

Yes ESA is treated as income (unearned income to be exact) and deducted in full from a UC Award.

The work allowance applies to earned income only.

https://www.moneyhelper.org.uk/en/benefits/universal-credit/universal-credit-an-introduction

anotherzebra

Ah I see, I have never heard of the difference between earned and unearned income before, thank you!

Does unearned income mostly apply to other benefits?

Kimi87

Whoops I think I deleted my post by accident, I was trying to edit to include this link:

https://www.moneyhelper.org.uk/en/benefits/universal-credit/universal-credit-an-introduction

anotherzebra

Brilliant thank you, that's exactly the type of thing I was searching for but couldn't find for love nor money!