ESA & Universal Credit - Disability Allowances

Mary284

Hello, I am currently on Universal Credit including the Housing Element. I am in the LCW category, and it is around £620 per month (£393 standard allowance plus around £227 for Housing Element). I have been awarded PIP recently also. I have 2 questions:

1. I am thinking of applying for New Style ESA or Contribution ESA - what is the difference? I'm thinking of this as my savings could be over £16k as just transferred a pension and taking ad hoc withdrawals, and as ESA not means tested this feels more appropriate. However, I have read that even on ESA they take into account pension withdrawals? If that is the case, how is this calculated/assessed as like I say they are ad-hoc and not regular as in an annuity?
2. If I claim ESA, this amount is taken from UC allowance. Is this from the full UC allowance including the housing element (£620) or just deducted from standard allowance of £393, which would mean my UC standard allowance would be Nil (or would they also deduct the difference ESA £633 - £393 = Minus £240)? As Housing Benefit around £227, if this is how it is calculated I would be worse off?
3. Is there an other non means tested benefit I could apply for instead?
4. Also, with PIP award, does UC then increase to include the Disability Premium? I would also probably qualify for Severe Disability Premium. Is this the case? Not sure that you have been on particular income related benefits to get this, and one critera of the disability premium is Housing Benefit and dont know if this includes the Housing element of UC or a legacy Housing Benefit?

Thanks so much in advance here, just trying to work out what to do for the best as health got much worse since a recent operation.

poppy123456

The only ESA possible to claim now is New style ESA and to qualify for payments for this you will have needed to have worked at some point in tax years 2021/22 and 2022/23. If you haven’t then its unlikely you will qualify for payments.

If you have worked then yes you can claim it but because it’s a contributions based only benefit there’s no disability premiums payable with this. They are also not payable when claiming UC.

The disability premiums are only payable with the old Income Related benefits and it’s not possible to claim any of these now.

Yes, if you’re entitled to payments for ESA it is deducted in full from any UC entitlement. So it will reduce your whole award and not just part of it. However because you only have LCW then payments will be time limited to 1 year. After that payments will stop.

Housing benefit no longer exists for working age people and UC had replaced it, which includes help with your rent known as housing element.

The only other non means tested benefit is New style JSA and you need to be a job seeker to claim this and have worked at some point in the previous 2 tax years.
I hope this helps.