How does the DWP calculate the amount of ESA taxable income?

ESABenefitsUK123
ESABenefitsUK123 Community member Posts: 81 Contributor

Sometime earlier this year, I got my annual slip of paper from the DWP, telling me how much of my ESA benefits counted towards taxable income.

It's handy to know this, as I can easily work out what remains from my annual personal tax allowance, by subtracting the personal tax allowance rate (currently set at £12570) with this figure that the DWP have told me.

But what I don't understand is how they have arrived at the figure that they have told me. I can't find the slip of paper at the moment, but I did write down this figure, and it was £6835.50

(I am guessing that the slip of paper told me information relating to the previous tax year, which was 2023-2024.)

I am currently on contrib ESA. I am in the support group. I am getting the low income premium, as my total savings comes to less than 6K. I am also getting the severe disability premium.

Can anyone tell me how the DWP have arrived at the figure of £6835.50, for the amount of taxable income? Thanks very much for any comments.

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Comments

  • poppy123456
    poppy123456 Community member Posts: 60,319 Championing

    As your ESA includes the disability premiums then at least part of it will be Income Related. Contributions based ESA Support Group is currently £138.20/week. This disability premiums are not taxable income.

    The previous tax year it was £129.50/week x 52 = £6,734 benefits increase usually around the 2nd week of April.