Do you receive new style ESA on top of Universal Credit?

chloechamley

Hello! Just a quick question! I currently get universal credit with the limited capability for work and work related activities aspect, I have recently applied for new style ESA and I was wandering if anyone knows if you get it on top of UC or if it comes off UC? I know that the benefit cap doesn’t apply to me because of the LCWWRA but I can’t seem to make sense of anything online, major brain fog going on right now! 

Thankyou in advance!!! 

Chloe 

poppy123456

HI and welcome.

The New Style ESA will be deducted in full from your UC entitlement. The amount they will deduct is £492.05. This is because NSESA is a weekly benefit paid fortnightly and UC is monthly. So to work it out you do as follows £113.55 x 52 = £5,904.60 divided by 12 = £492.05.

To claim NSESA you must have paid the correct NI Contributions in tax years April to March 2017/18 and April to March 2018/19. The only advantages to claiming this is it's not means tested so savings/capital don't affect it. It also pays class 1 NI, where as UC pays class 3.

chloechamley

ah so I’d be no better off? I currently get £687 a month from UC, would that just stay the same then? I hate all this money stuff! Makes my brain hurt haha 

chloechamley

also where does the benefit cap come into all this? I think mines capped at £1100 something, but I get pip so apparently the benefit cap doesn’t count. That’s why I was curious as to why they suggest to apply to both 

poppy123456

At the moment your UC amounts are...

Standard allowance single person under 25 £342.72

and LCWRA element £341.92. Total £684.64 paid monthly.

If you've worked and paid the correct NI contribtions in the above tax years your ESA will be £113.55 every fortnight.

Then your UC will be £684.64 - £492.05 = £192.59 per month.

The benefit cap doesn't apply to you because you're claiming PIP and LCWRA

There's never any financial gain to claim both NSESA and UC at the same time because you can't receive the same payments twice.

The advice to apply for both is most likely because NSESA isn't means tested and UC is. So if in the future you have savings/capital or maybe you'll be living with a partner, their earnings will not affect your NSESA payments.

chloechamley

Ah that makes more sense! Thankyou for explaining it! I think I’m better off leaving it as it is atm then! 

Once you’ve applied for ESA can you cancel the application? 

poppy123456

You're welcome. If you want my honest opinion, if i were you and i was entitled to NSESA then i'd definitely be claiming it, even though i won't be financially better off. As it's not means tested then you don't know what the future will bring, if you ever live with a partner that works, your UC may end because of income. The ESA will continue in the Support Group (LCWRA) for as long as you remain in that group.

It's also good because UC is 1 single monthly payment and so many people find it extrmely difficult to manage financially because of this. ESA is paid fortnightly, which means managing money could potentially be much easier.

Of course it's entirely your decision, you can cancel the ESA is you want to.

chloechamley

I just don’t know if I can deal with another WCA, will they be able to use the one from UC given that it’s the same paperwork and assessment etc? 

Sorry for all the questions! 

poppy123456

No WCA is needed because you already the LCWRA with UC and the equivalent of that for ESA is Support Group, so you'll be placed straight into there.

chloechamley

Thankyou!! That’s a big relief then if that happens! I’ll stick with it then! Hopefully it gets processed soon! Do you happen to know the average wait time? Just hope the cross over is smooth!

poppy123456

You're welcome. Due to covid19 it could take 4-5 weeks, slightly longer than usual. There shouldn't be any problems, providing you qualify.

davegregson40

It will take a bit longer then usual.but still be within weeks. The PIP is not included in the benefit cap and it's not a means tested benefit. 

poppy123456

davegregson40 said:

The PIP is not included in the benefit cap and it's not a means tested benefit. 

The benefit cap doesn't apply in this case because there's a PIP award.

Chloe_Scope

Welcome to the community @chloechamley! Just to let you know that I have merged the two threads.