Employment and Support Allowance (ESA)
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NS ESA cont based- what elements of redundancy payment do ESA disregards?

hackporthackport Member Posts: 11 Listener
Can anyone advise how redundancy payment which includes notice pay/ compensation for loss of office affects ESA contribution based ? Just placed in support group, does redundancy affect claim?

Replies

  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Hi,

    I'm assuming you're claiming New style ESA rather than the old Contributions based ESA? Either way it doesn't affect either of them.

    Are you claiming any means tested benefits such as Universal Credit?
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • hackporthackport Member Posts: 11 Listener
    Hi Poppy, 
     I am claiming  new style ESA (contribution based) only and no means tested benefits but cannot find any regs that confirm disregards for Cont Based ESA.
    Should I let JC+ know?
    many thanks

  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Redundancy payment doesn't affect New style ESA. However, reading your question again i see you received compensation payment for a loss of something. This could potentially affect your ESA and therefore i would contact DWP and tell them about your redundancy and let a decision maker decide what's counted or not. I found this link but i don't know if you'll be able to understand it because they're not easy to understand. It says redundancy isn't  counted but compensation is.

    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • atlas46atlas46 Member Posts: 827 Pioneering
    Hi @hackport

    A payment for loss of office, is a catch all term, can you be more specific?

    A simple acid test, you could follow, was Income Tax deducted, for any payment for loss of office.

    If no tax was payed, then it has no impact on any benefits.

    If tax was paid, then you need to speak to DWP for specific guidance.

    Best wishes
  • hackporthackport Member Posts: 11 Listener
    Hi Atlas46 & Poppy,

    no tax deduction on compensation for loss of office or severance pay but I think notice pay and holiday pay would affect ESA, do DWP treat as weekly income or stop claim? Really want to avoid another WCA☹️ Have at last managed to get P45 from ex employer, will write to DWP.
    thanks for prompt responses😀
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