underpayment ?

Hi,

Whether you're entitled to any backdated money will depend on your circumstances between the dates stated in the letter. Living with a partner that works, household income/savings and capital are all things they take into consideration when calculating whether they owe you any money.

It will also depend on what group you were in when you were transferred across between those dates. Without knowing all of your circumstances at that time then it's impossible to give a definite answer on an internet forum.

Unfortunately, if you think you're owed money then you'll need to fill out the form and return it to DWP. Decision times are currently taking between 12-20 weeks.

meggymoo

I sent the form back beggining of July.why that one year in particular ?

That was most likely the year you transferred across from IB to ESA. It will also depend on which group you were placed into when you transferred across, if it was the WRAG then the chances of an underpayment are lower. As WRAG was only paid for 1 year when claiming Contributions based then you would have been assessed for Income related towards the end of the year that you were in the group.

Not everyone that moved across will be or have been entitled to any backdated money. Some have already had their decision and they haven't been owed any money.

Impossibly to help you further with such limited information.

meggymoo

OK thanks.

Chloe_Alumni

Hi @meggymoo and a warm welcome to the community. Please do keep us updated and we will try and support you with this.

Is there anything else I can do to help? If you'd like a chat with other members then the coffee lounge is always a good place to start!

Hi, wondering if anyone can help me. I have had a letter about the underpayment from 4/1/11-25/12/11. I was getting dla and it transferred to esa. I got contribution rate, now I get contribution and income related. I also get daily living pip. I'm confused about if I am entitled to an underpayment or not. I am in the esa support group.

Thanks for any help

Hi,

Your DLA didn't transfer to transfer to PIP.

The underpayments concern those that were transferred from Incapacity benefit to ESA. Whether you're owed any money between those dates will depend on your circumstances at that time and which group you were in during those dates.

The things they look at when they assess you for the underpayment are living with partner that works, other household income such as pensions, savings and capital. It's impossible to give a definite answer on an internet forum without knowing your exact details and seeing all your paper from the dates stated.

If you haven't filled out the form then you'll need to do this and return it. If you've already filled out the form then i'm afraid you'll have to wait for DWP to assess you, once this is done a decision will be made and they send you a decision letter.

Waiting times for decisions are currently between 12-20 weeks.

Just out of interest, I understand that these underpayment lump sums are disregarded as capital, but are they taxable?

No, they are not taxable. Underpayments of less than £5,000 are disregarded for 52 weeks but DWP errors that are more than £5,000 are disregarded for the life of the ESA claim.

poppy123456 said:

No, they are not taxable. Underpayments of less than £5,000 are disregarded for 52 weeks but DWP errors that are more than £5,000 are disregarded for the life of the ESA claim.

OK, I receive a p60U every year with my IRESA which is weird? As I don't claim any other benefits other than HB

If part of your ESA is Contributions based then this is why you receive your P60 because Contributions based benefits are taxable. Income Related benefits aren't. This link will tell you what is and isn't taxable income. https://www.citizensadvice.org.uk/debt-and-money/tax/what-is-taxable-income/taxable-and-non-taxable-income/

Hi, sorry I was on IB and then trsfd to esa, contribution.
I have never lived with a partner whilst claiming. I have a daughter who was living with me, but she was in college at the time that they were asking about, so not earning.
I have sent the form back so I will just have to wait until I hear anything back from them.
I probably won't be entitled to any refund.
Thank you for your help

poppy123456 said:

If part of your ESA is Contributions based then this is why you receive your P60 because Contributions based benefits are taxable. Income Related benefits aren't. This link will tell you what is and isn't taxable income. https://www.citizensadvice.org.uk/debt-and-money/tax/what-is-taxable-income/taxable-and-non-taxable-income/

Thanks, I have just seen this and it does say that IRESA is not taxable, which is why I'm confused? The fact that I've just received my ESA underpayment would confirm that I'm on IRESA? Can CB and IR be combined?

wild_one said:

poppy123456 said:

If part of your ESA is Contributions based then this is why you receive your P60 because Contributions based benefits are taxable. Income Related benefits aren't. This link will tell you what is and isn't taxable income. https://www.citizensadvice.org.uk/debt-and-money/tax/what-is-taxable-income/taxable-and-non-taxable-income/

Thanks, I have just seen this and it does say that IRESA is not taxable, which is why I'm confused? The fact that I've just received my ESA underpayment would confirm that I'm on IRESA? Can CB and IR be combined?

Your ESA is contributions based with an income related top up.

poppy123456 said:

wild_one said:

poppy123456 said:

If part of your ESA is Contributions based then this is why you receive your P60 because Contributions based benefits are taxable. Income Related benefits aren't. This link will tell you what is and isn't taxable income. https://www.citizensadvice.org.uk/debt-and-money/tax/what-is-taxable-income/taxable-and-non-taxable-income/

Thanks, I have just seen this and it does say that IRESA is not taxable, which is why I'm confused? The fact that I've just received my ESA underpayment would confirm that I'm on IRESA? Can CB and IR be combined?

Your ESA is contributions based with an income related top up.

Thanks again.

Hi, my esa is cb with ir top up.
I'm confused as to how you get cbesa and iresa, as I'm not working and I don't have any other money i. e pension, but get pip which isn't taken into consideration.
I have got a non dependent daughter living with me, I don't know if that will make any difference.
If anybody can help me understand this please.
Thank you

gillym said:

Hi, my esa is cb with ir top up.
I'm confused as to how you get cbesa and iresa, as I'm not working and I don't have any other money i. e pension, but get pip which isn't taken into consideration.
I have got a non dependent daughter living with me, I don't know if that will make any difference.
If anybody can help me understand this please.
Thank you

Some people do claim Contributions based with an Income Related top up, if they have no other household income, savings or capital. Some people just receive Contributions based. Others receive just Income Related.

Hopefully it won't be too long before you have a decision.