What Is The Point of ESA?

hughiemachrins

I have been trying to learn about all possible benefits and I am getting a handle on most. However, it appears to me that if you get ESA, the amount you get is deducted from your UC. If that is correct, what is the point in applying for ESA?

woodbine

some info on UC and sickness:

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/health-conditions-or-disabilities/

calcotti

There are many people who would qualify for ESA who would not be able tp claim UC due to savings or other household income.

Even if you are entitled to UC claiming ESA will give a fortnightly ESA payment and a monthly UC top up which can help some people with budgeting and cashflow. You will also get Class 1 NI credits on ESA whereas only Class 3 on UC. If you are eligible for ESA that will protect you from future changes i household income/savings which might result in end of UC entitlement. On the other hand ESA is taxable income so if you have already used uproar tax free allowance you might prefer to only have UC which is not taxable.

Bear in mind that if claiming ESA is delayed too long it may not be possible to claim in the future depending on your NI history. A claim made now will rely on tax years 2018-19 and 2019-20. A claim made in 2022 will rely on tax years 2019-20 and 2020-21.

hughiemachrins

Thank you @calcotti for your considered and helpful response. Thank you @Username_removed for your response too.