Why am I on contribution based ESA?

Craig24795
Craig24795 Online Community Member Posts: 43 Connected

Hi.

I've never worked and am unlikely to ever be able to work, so I don't understand why I'm on contribution based ESA. I was on income related ESA and contribution based ESA (receiving a P60 every year and a £10 Christmas bonus), before I complete the migration process to UC. I receive UC monthly and CB ESA every 2 weeks. I informed UC of the circa £276.40 that goes into my bank every 2 weeks and they deducted some money from my UC payment.

I used to be on DLA and any benefit that preceded this. I also used to be on PIP but lost this a few years ago after an assessment. I don't understand why I'm on CB ESA. I thought this is a benefit for people who work or have worked? I've never been asked to work and I've never told the DWP that I've worked, so I can't understand why I was on both income related ESA and CB ESA. Is it because I used to be on DLA?

My memory is bad and I can't remember any meetings I had in the past, so I don't know why I've been on this benefit. I've always followed the rules and done everything I was supposed to do, so if a mistake has been made, it's on their end. I assume that they must think I should be on CB ESA. Can you please explain why?

Thank you.

All the best.

Comments

  • Kimi87
    Kimi87 Online Community Member Posts: 5,102 Championing
    edited March 20

    Were you ever on the old Incapacity Benefit?

    There were special youth rules which meant you could qualify for IB even without working.

    When Incapacity Benefit was replaced with ESA, transfers were to CB ESA (as Incapacity was a CB benefit) with an IR top up if applicable.

    There were also similar youth rules for new ESA claimants.

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Hi.

    I know I was on DLA. I will try to see if I can find some of my old notes from the loft. I assume I must have been on incapacity benefit. I doubt they'd have made a mistake? I've been receiving this for years.

    Thanks for responding.

  • bench
    bench Online Community Member Posts: 129 Empowering

    Kimmy would know better that me , but I sure they pay you national insurance while you're on ESA income based , maybe that has have something to do with that ??

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Hi.

    I've found an old letter from November 2012 that states the following:

    "Your benefit is changing to Employment and Support Allowance.

    We will pay ESA from 5 December 2012. This will replace your incapacity benefit, income support on the grounds of illness or disability or severe disablement allowance. We will pay your previous benefit up to the day before your entitlement to ESA starts.

    You are entitled to contribution based ESA. This allowance is taxable. We have advised HMRC of this decision and they may send you a revised tax code as a consequence, dependent on your circumstances.

    We will continue to credit you with National Insurance contributions while you get ESA. These credits can help you to qualify for benefits in the future, including your state pension.

    You may also be entitled to income related ESA if you do not have enough money coming in. Details on how you can apply for this are included in this letter."

  • bench
    bench Online Community Member Posts: 129 Empowering

    And definitely did if you was claiming the old incapacity benefit ,as they did for are you in support group now ? I am in work activity group so my contribution-based ESA stopped after 12 months

  • bench
    bench Online Community Member Posts: 129 Empowering

    So yes the DWP have paid your national insurance, the same as anyone that has worked

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected
  • Popster2020
    Popster2020 Online Community Member Posts: 35 Connected

    Does anyone know what's happening to old CB ESA? I'm in the support group. With all the announcements this week I'm left very confused about reassessments and / or mergers!

  • Kimi87
    Kimi87 Online Community Member Posts: 5,102 Championing

    If you are moved to the Support Group, your claim will revert to CB ESA with an IR top up if applicable.

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Hi. I was in the support group and received income related ESA and CB ESA. The income related element is now UC and I'm in the support group for that. I still receive CB ESA, so UC have made some deductions from my original payment.

  • bench
    bench Online Community Member Posts: 129 Empowering
  • Kimi87
    Kimi87 Online Community Member Posts: 5,102 Championing
    edited March 20

    Yes that's all correct. So it seems a previous Incapacity Benefit award is the reason you were getting CB ESA and now receiving NS ESA 😊

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Thank you.

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected
  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Hi.

    If you're in the support group for income related ESA, you should receive a migration notice to move to UC. Once the move to UC is completed, the income related ESA ends. You will receive UC once a month. Also, if you're also on CB ESA, this will be paid separately (every 2 weeks). You should receive both of them. I think that CB ESA has now changed to 'New Style ESA'. If I've got anything wrong, I'd advise you to consult with people far more knowledgeable than me on this topic (such as 'Kimmy' or 'Poppy').

    All the best.

  • Popster2020
    Popster2020 Online Community Member Posts: 35 Connected

    54.Alongside levelling up the rate, this change would end the indefinite entitlement to contributory ESA for those assessed as having limited capability for work-related activity (for new people claiming). Those unemployed after the time-limited period would be able to claim UC, depending on their personal circumstances. We believe this reform would align with the removal of the WCA, by offering a route to financial support for those with temporary and short-term health conditions, including for those who may not be entitled to PIP and therefore not entitled to the health element of UC.

    The above implies for new claims?

  • Popster2020
    Popster2020 Online Community Member Posts: 35 Connected

    I've founds this too:

    ntroducing a new Unemployment Insurance by reforming contributory benefits

    149. We are consulting on creating a new Unemployment Insurance for those that have made National Insurance contributions. This would mean people receive the income they need alongside the right employment support to get back into work. The welfare system was founded upon the contributory principle – the idea of ‘something-for-something’. Contributory benefits are a form of non-means tested support for those who experience unemployment. Currently, New Style Employment and Support Allowance (NS ESA) and New Style Jobseeker’s Allowance (NS JSA) provide support for those who have recently become unemployed. To qualify for these benefits, 2 to 3 years’ worth of National Insurance credits must have been paid or credited prior to the date of a person’s claim. NS ESA supports individuals whose ability to work is restricted due to a disability or health condition. NS ESA relies on the WCA to determine eligibility. After the WCA, NS ESA places people in either a work-related activity group or a support group, which determines how much work preparation activity they are required to do and how long they are able to access the benefit. NS JSA also supports unemployed individuals, or those working on average less than 16 hours a week, but it does not have a health-related requirement. People receiving NS JSA are expected to be actively searching for work and are able to access the benefit for up to 6 months.

  • Craig24795
    Craig24795 Online Community Member Posts: 43 Connected

    Hi.

    I imagine that the proposed changes will take a while to implement. As for how things stand currently, I think that what I said is correct, but I would encourage you to ask somebody far who has more knowledge than me on these matters.

    All the best.

  • Kimi87
    Kimi87 Online Community Member Posts: 5,102 Championing

    Nothing will change for some time, and the changes that eventually happen probably won't match the current proposals.