ESA CB or IR?

dude2024
dude2024 Online Community Member Posts: 3 Listener
in Employment and Support Allowance (ESA)

Hi guys

I always used to think that I was on income related ESA as this is what letters say. However having read a few threads on here I realised that I get P60u every year which states taxable amount. Does it mean that part of my ESA is Contribution based?

If so then it would mean that I’ll be moved to new style esa and uc? Are there any advantages or disadvantages of being on both benefits?

Thank you

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Potentially your ESA is a mixture of both. To know for certain you can ring them to ask.

    If it is then yes the CB would revert to New style ESA. It would be deducted in full from any UC entitlement. Therefore you would receive £276.40/fortnight ESA and UC would top up your income.

    Therefore advantages are ESA would be class 1 NI credits and UC class 3. ESA isn’t means tested but UC is. Which could come in useful in the future.

    It can also help to budget a little easier due to the fortnightly ESA payments. UC is monthly.

  • WhatThe
    WhatThe Online Community Member, Scope Member Posts: 3,533 Championing

    Hi Dude and welcome to Scope 😊

    I'll be following your thread as my annual P60u for only IR ESA does not make sense!

  • dude2024
    dude2024 Online Community Member Posts: 3 Listener
    https://forum.scope.org.uk/discussion/comment/963391#Comment_963391

    thank you

    I tried finding some information on national insurance credits but I haven’t been able to make sense of it. What’s the advantage of 1NI credits?

  • dude2024
    dude2024 Online Community Member Posts: 3 Listener

    I find it so confusing.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    https://forum.scope.org.uk/discussion/comment/963475#Comment_963475

    Class 1 for ESA, which can count for some benefits and for state pension. Class 3 for UC which counts for state pension only.

    If your ESA is a mixture of both CB and IR I'd advise you to continue with the ESA when it reverts to New style due to it not being means tested. It's not possible to predict what may happen in the future and the ESA could come in useful due to it not being affected by capital, a working partner and pensions of up to £85/week.

  • WhatThe
    WhatThe Online Community Member, Scope Member Posts: 3,533 Championing
    edited January 6

    dude, if you fancy staying up all night, tune into BBC Parliament from 23:35 for a debate on the National Insurance Contributions Bill.

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