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Universal Credit and New Style ESA/JSA

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7501x
7501x Community member Posts: 56 Connected
Hi all. I receive UC and I’m currently awaiting an assessment to see if I will receive LCWRA. I then saw on the Government website you can apply for new style JSA and/or new style ESA at the same time as UC. What I’m confused about though is that if you get awarded new style ESA it reduces your UC payments by the same amount of ESA you receive, so financially you’re no better off. I’m just really confused about the following:

- Why would anyone claim new style ESA if they get UC? If you’re not financially better off it doesn’t make sense, as the money stays the same it’s just coming from a different source?
- Can you get new style ESA and LCWRA at the same time? 

Thanks in advance for any advice :)

Comments

  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    7501x said:,,f you get awarded new style ESA it reduces your UC payments by the same amount of ESA you receive, so financially you’re no better off.
    Correct.
    7501x said:
    - Why would anyone claim new style ESA if they get UC? If you’re not financially better off it doesn’t make sense, as the money stays the same it’s just coming from a different source?
    You get Class 1 NI credits for ESA, Class 3 for UC (for most people this isn't significant).
    ESA is paid fortnightly instead of monthly.
    If your circumstances change in the future, say inherit some money or, if you are single and you move in with a working partner your entitlement to UC could end due to means testing, Your ESA entitlement would be unaffected (but you will not be able to claim ESA in the future if you have not been working for a while because you you would no longer meet the NI conditions).
    (On the other hand ESA is taxable whereas UC is not so if you have other taxable income such taht you would go over your tax free amount you might prefer to to claim ESA.)
    7501x said:
    - Can you get new style ESA and LCWRA at the same time? 
    Yes (qualifying for LCWRA is equivalent to ESA Support Group) - but you are no better off financially as you have noted.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • 7501x
    7501x Community member Posts: 56 Connected
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    Hi thanks so much for your help! If I were to be awarded the new style ESA, would I still have my UC reduced if the benefit cap doesn’t apply to me as I receive PIP?

    also in terms of receiving LCWRA and new style ESA, so essentially you could receive approximately an extra £700 a month if awarded both? 

    I’m still very confused about why you would claim new style ESA if you get UC as if you’re financially no better off it just makes sense to me for ease to receive UC only.

    sorry if I’m being thick 🤦🏻‍♀️
  • bg844
    bg844 Community member Posts: 3,887 Disability Gamechanger
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    I think for some 2 week payments are better for their situation, some people aren’t entitled to UC as calcotti said due to things like savings, partner income etc. Class 1 credits too instead of Class 3. My friend gets New-Style ESA and is at University and his student loans do not affect his payments whereas if he was on UC his payment would be significantly reduced.
  • poppy123456
    poppy123456 Community member Posts: 57,161 Disability Gamechanger
    edited February 2022
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    7501x said:
    Hi thanks so much for your help! If I were to be awarded the new style ESA, would I still have my UC reduced if the benefit cap doesn’t apply to me as I receive PIP?

    also in terms of receiving LCWRA and new style ESA, so essentially you could receive approximately an extra £700 a month if awarded both? 

    I’m still very confused about why you would claim new style ESA if you get UC as if you’re financially no better off it just makes sense to me for ease to receive UC only.

    sorry if I’m being thick 🤦🏻‍♀️

    If you claim New style ESA yes your UC would be reduced because it's deducted in full. It has nothing to do with the benefit cap.
    No, you would receive an extra £343.63 per month, not £700. ESA Support Group amount now is £114.10 per week but as advised, UC is reduced.
    You're not financially better off but as advised it maybe useful in the future because the ESA is not means tested, while UC is.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • poppy123456
    poppy123456 Community member Posts: 57,161 Disability Gamechanger
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    However, if you haven't paid the correct NI contributions in tax years 19/20, 20/21 then you won't be able to claim New style ESA.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    edited February 2022
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    7501x said:
    Hi thanks so much for your help! If I were to be awarded the new style ESA, would I still have my UC reduced if the benefit cap doesn’t apply to me as I receive PIP?
    It has nothing to do with the benefit cap. ESA will always be deducted in full from any UC payment.
    7501x said:
    also in terms of receiving LCWRA and new style ESA, so essentially you could receive approximately an extra £700 a month if awarded both? 
    No. The ESA is deducted in full from he UC. You would get an extra £343.63 for the LCWRA element in UC and if claiming ESA the ESA will be deducted. 
    7501x said:
    I’m still very confused about why you would claim new style ESA if you get UC as if you’re financially no better off it just makes sense to me for ease to receive UC only.
    The main reason is the last one of those I posted
    calcotti said:
    If your circumstances change in the future, say inherit some money or, if you are single and you move in with a working partner your entitlement to UC could end due to means testing, Your ESA entitlement would be unaffected (but you will not be able to claim ESA in the future if you have not been working for a while because you you would no longer meet the NI conditions).
    In other words claiming ESA (if entitled) protects some of your income from possible future changes which might end entitlement to UC.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • Metja12345
    Metja12345 Community member Posts: 2 Listener
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    Does esa get increased after being on it after 6 months 
  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    Does esa get increased after being on it after 6 months 
    No. You get the Support Group component added if placed in the Support group. It is payable from the 14th week.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • Metja12345
    Metja12345 Community member Posts: 2 Listener
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    I know a person who gets £200 a week 
  • bg844
    bg844 Community member Posts: 3,887 Disability Gamechanger
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    I know a person who gets £200 a week 
    They could be on the old income-related benefit which includes different premiums.
  • poppy123456
    poppy123456 Community member Posts: 57,161 Disability Gamechanger
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    I know a person who gets £200 a week 

    This thread is about New Style ESA which is contributions based only. If in the Support Group this pays a maximum amount of £114.10 per week, with a small increase from April 2022.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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