Claiming Contribution based ESA when already claiming UC

bushbert

Hi

I’m currently in the lcwra group for universal credit but I think I’m eligible for the contribution based ESA. 

What I would like to know is, if I apply for ESA would I automatically be placed in the support group since I already did the assessment for UC or would that be a separate assessment?

Thank you.

poppy123456

It would be New style ESA you need to claim, providing you've paid the correct amount of NI Contributions in tax years April 2018 to March 2020. The ESA will be deducted in full from any UC entitlement.

Yes, you would automatically be placed into the Support Group. https://www.gov.uk/guidance/new-style-employment-and-support-allowance#how-to-apply

bushbert

poppy123456 said:

It would be New style ESA you need to claim, providing you've paid the correct amount of NI Contributions in tax years April 2018 to March 2020. The ESA will be deducted in full from any UC entitlement.

Yes, you would automatically be placed into the Support Group. https://www.gov.uk/guidance/new-style-employment-and-support-allowance#how-to-apply

Thanks for answering. If it is automatically deducted in full from any UC entitlement, is there any point in applying? I thought because I was in Lcwra group, there wasn’t a benefit cap?

thanks

calcotti

bushbert said:  If it is automatically deducted in full from any UC entitlement, is there any point in applying? I thought because I was in Lcwra group, there wasn’t a benefit cap?

It’s nothing to do with the benefit cap. Any new style ESA will always be deducted from UC.

The point of applying is that your ESA would not be affected by any changes in your capital or income whereas if, for example, you came into some money or if you became part of a couple your UC would be affected.

On the other hand ESA, unlike UC, is taxable income and if you have already used up your tax free allowance would give rise to a Tax liability.

bushbert

calcotti said:

bushbert said:  If it is automatically deducted in full from any UC entitlement, is there any point in applying? I thought because I was in Lcwra group, there wasn’t a benefit cap?

It’s nothing to do with the benefit cap. Any new style ESA will always be deducted from UC

So there is no point in claiming it?

calcotti

bushbert said:

calcotti said:

bushbert said:  If it is automatically deducted in full from any UC entitlement, is there any point in applying? I thought because I was in Lcwra group, there wasn’t a benefit cap?

It’s nothing to do with the benefit cap. Any new style ESA will always be deducted from UC

So there is no point in claiming it?

See my reply (which I was still editing when you posted).

bushbert

calcotti said:

bushbert said:

calcotti said:

bushbert said:  If it is automatically deducted in full from any UC entitlement, is there any point in applying? I thought because I was in Lcwra group, there wasn’t a benefit cap?

It’s nothing to do with the benefit cap. Any new style ESA will always be deducted from UC

So there is no point in claiming it?

See my reply (which I was still editing when you posted).

Thanks.

I’m trying to wrap my head around it. :-)

so if ESA is taxable income, I would declare that on my UC claim?

im just trying to understand if I’m getting the UC amount for Lcwra, I wouldn’t get the full allowance for new style ESA in addition to that?

calcotti

bushbert said:so if ESA is taxable income, I would declare that on my UC claim?

im just trying to understand if I’m getting the UC amount for Lcwra, I wouldn’t get the full allowance for new style ESA in addition to that?

If you apply for ESA then UC will know. The fact that ESA is taxable is not relevant to UC. If you claim ESA you get paid ESA fortnightly and you still get UC monthly but the UC payments are reduced to take into account the ESA.

poppy123456

No, you don't declare the ESA to UC. Taxable income is to do with HMRC not DWP.

As calcotti has advised, if you're eligible to claim the ESA then it is worth claiming because if anytime in the future you have a change of circumstances.. savings/working partner and any pension of up to £85 per week are all ignored for New style ESA.

UC is means tested so a working partner, any pension and savings of more than £6,000 will affect your UC.

The ESA is also paid fortnightly and UC is paid monthly so it can also help you to budget better. It also pays class 1 NI, where as UC only pays class 3.

If you claim both together your ESA will be £114.10 per week (£228.20/fortnight) your UC will then reduce by £494 per month.

Your UC will still include all the elements you're currently receiving.

bushbert

poppy123456 said:

No, you don't declare the ESA to UC. Taxable income is to do with HMRC not DWP.

As calcotti has advised, if you're eligible to claim the ESA then it is worth claiming because if anytime in the future you have a change of circumstances.. savings/working partner and any pension of up to £85 per week are all ignored for New style ESA.

UC is means tested so a working partner, any pension and savings of more than £6,000 will affect your UC.

The ESA is also paid fortnightly and UC is paid monthly so it can also help you to budget better. It also pays class 1 NI, where as UC only pays class 3.

If you claim both together your ESA will be £114.10 per week (£228.20/fortnight) your UC will then reduce by £494 per month.

Your UC will still include all the elements you're currently receiving.

Ah ok, I just assumed contribution based ESA would be in addition to UC. 

Thanks both for explaining.

calcotti

Username_removed said: Around 10% of UC claims are currently paid accurately. 

That’s shocking. I had no idea it was so low.