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ESA and payments from employer when leave work on capability grounds.

TaraHeart

Hi there,
I currently receive old style ESA in the support group(LCWRA) but have applied for New style ESA. What is the difference between income based and contribution based ESA, or are they the same? My sick pay finished in September 2020,didnt know about NS ESA then.
Can NS ESA be backdated?
I also receive PIP enhanced and housing benefit via UC.
I am 61 years old, have always worked but have no pension to speak of, and have been off sick since February 2020.
Following an occupational health assessment I have been offered some monies from my employer, holiday pay/notice etc on capability grounds. I am not likely to be able to work due to my disability. It's not much ,approx £7,000.
Will this be taken from me and classed as earnings?
I need to move house to a more suitable property and the money would really help at the moment.
Any thoughts?
Thank You.

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calcotti

TaraHeart said:

Hi there,
I currently receive old style ESA in the support group(LCWRA) but have applied for New style ESA.

You say that you are already getting UC so I infer that your ESA is only contribution based because applying for UC would have ended any income based ESA you were getting.
New style a ESA replaces but is essentially the same as contribution based ESA so you are applying for a benefit which, from a practical point of view you already get, you already get.

TaraHeart

Thank you,.
Mine was a New claim last year so had no choice bout the UC aspect,or so I thought. Wish I had known about the income based malarkey,they were taking my part salary into consideration until it ran out,didnt know bout anything.
Did need help with the rent though so not much choice I guess?
Will any funds I receive from my employer at termination be classed as income?
Not had a reply from DWP bout my claim for New style ESA yet... the one I'm already getting you say so that should be interesting! Wish I'd studied more at university now?

calcotti

TaraHeart said: Will any funds I receive from my employer at termination be classed as income?

They will not affect the ESA because it is not means-tested. They will however affect your UC payment..