National insurance credits

philc1981
philc1981 Online Community Member Posts: 5 Connected
edited January 6 in Employment and Support Allowance (ESA)

I currently get contribution based ESA and have done for about 5 years they have paid my NI credits no problem, asking for some advice because I now have to claim UC and my ESA is deducted over £600pm from UC when I receive around £560 which leaves me with a small amount on the date I get paid UC. can I receive NI credits claiming UC if I stop my ESA? I have 3 years left to get full state pension or would it be worth sticking with the ESA? Sorry for the long complicated message.

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Comments

  • Kimi87
    Kimi87 Online Community Member Posts: 8,160 Championing

    ESA pays class 1 NI Contributions, UC pays class 3.

    You'd be on exactly the same money if you stopped the ESA. It would just come 100% from UC, instead of both UC & ESA.

    ESA gets paid fortnightly and if you had a change of circumstances such as an inheritance which ended UC, any future reclaim wouldn't require a new medical assessment due to the active ESA claim.

    There is talk of time limiting New Style ESA, but I advise on the current system not what ifs.

  • philc1981
    philc1981 Online Community Member Posts: 5 Connected

    thank you for explaining that I didn’t know there was different classes to consider, I will stick with ESA and the class 1 contributions. Thanks for your help it’s really appreciated.

  • Kimi87
    Kimi87 Online Community Member Posts: 8,160 Championing

    In terms of state pension there isn't any monetary difference in what you end up with, based on Class 1 vs Class 3 contributions.

    Class 1 can in certain circumstances make you eligible for contribution based benefits.

    That's about the only difference really.

    I'm on both benefits myself and decided to leave things as they are, as there isn't a good enough reason to change in my opinion.

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