Both claiming ESA separately and move in together?

Annie_wilson

Two people, both severely disabled. 
Live separately.

1st person - claims a mix of IR & cont based ESA support group & receives some SDP. Receives small occupational ill health pension £45 per week. 
Also, receives enhanced daily living and enhanced mobility PIP. No savings. 

2nd person - claims IR related ESA support group & receives SDP. Also claims enhanced daily living and enhanced mobility PIP. No savings. 

Nobody claims carers allowance and no housing benefit claims. 

Both move into a new home together as a couple which is mortgaged (disabled housing bought via housing scheme).  

What happens? Do they have to complete an ESA3 form and claim as a couple and one will lose their own separate claim? I know one will lose SDP and they will receive only one SDP. 

Esa3 form is confusing as mentions work related assessments etc and they seem to be given mixed advice. I am concerned this may cause issues for them. 

calcotti

Annie_wilson said:

What happens? Do they have to complete an ESA3 form and claim as a couple and one will lose their own separate claim? I know one will lose SDP and they will receive only one SDP. 

More or less except that

• they will be entitled to the couple SDP which is equivalent to two single SDPs. (when you say ‘some’ SDP I assume you just mean that the pension income is deducted, that will still be the case)
• the person getting contribution based ESA will retain entitlement to that
• they can choose who is to be the income based ESA recipient so it can either all go to claimant 1 or claimant 1 can get the carer-ESA and the other can get the IB-ESA

The total benefit income will be less than existing.

Are either of them close to pension age? If either of them is very close to pension age it would be better for the younger person to claim the ib-ESA because they can then remain on ESA when the older one reaches pension age. If the older person is the one getting IB
ib-ESA then they will have to switch to UC when that person reaches pension age. If they are both several years away from pension age this is less of an issue because everybody should be switched to UC other next few years anyway.

Annie_wilson

Thank you for this, it's confusing to find solid advice on this out there. Both are quite far away from their state pension.

Yes deductions from occ pension affected person 1's claim and there are some deductions. Both have accepted they were be getting less than when they lived alone but they aren't too worried as they will be sharing bills from only one house now so it should even itself out. 

calcotti

If approaching pension age is not a concern then I would suggest that person one retains the contribution based ESA at £114.10 and person 2 claims the income based ESA. That way they both get some income(but obviously it depends how they want to manage their finances). Doing it that way would also mean that if they later split up (hopefully not) they would both be able to stay on ESA whereas if only one of them gets all the ESA and they later split up the one without would have to claim UC.

Annie_wilson

Thank you for this advice. That is interesting as person 1 was told over phone by DWP you will have to do a joint claim and claim as a couple now and only one person can get the money into their account. Would they still have to complete an esa3 form to do this?
And would this be classed again as two separate esa claims? Or one joint?  It is all very confusing. 

calcotti

Technically there is no such thing as a joint ESA claim. There are only individual claims but where there is a partner the partner’s finances have to be taken into account.

Only one person can get the income based ESA but, if entitled, either or both can get contribution based ESA. In this case only one can get the contribution based ESA.

Answering this question made we realise there is a strong reason for one to claim the contribution based ESA and the other the income based ESA. If they do that they are both ESA claimants anf therefore both get NI credits towards their future State Pensions.

If claimant one were to receive both the contribution based and income based ESA then the second person would no longer be getting NI credits (because the partner on an ESA claim doesn’t get NI credits as they are not classed as a claimant).

I should have remembered the NI issue when I made my first reply - apologies for not doing so.

An ESA3 will need to be completed in order to assess the income based entitlement.

Annie_wilson

Thank you so much for all your advice it has been invaluable. I'll have them call first thing tomorrow and get this sorted out. 

Annie_wilson

calcotti said:

Technically there is no such thing as a joint ESA claim. There are only individual claims but where there is a partner the partner’s finances have to be taken into account.

Only one person can get the income based ESA but, if entitled, either or both can get contribution based ESA. In this case only one can get the contribution based ESA.

Answering this question made we realise there is a strong reason for one to claim the contribution based ESA and the other the income based ESA. If they do that they are both ESA claimants anf therefore both get NI credits towards their future State Pensions.

If claimant one were to receive both the contribution based and income based ESA then the second person would no longer be getting NI credits (because the partner on an ESA claim doesn’t get NI credits as they are not classed as a claimant).

I should have remembered the NI issue when I made my first reply - apologies for not doing so.

An ESA3 will need to be completed in order to assess the income based entitlement.

Unfortunately the couple received a letter from their council tax reduction (they don't claim housing benefit only CTR) saying their ESA has been stopped. They called about it this morning and both ESA claims have now been suspended pending the ESA3 form returning. The ESA3 was scanned in at the jobcentre last week. They called the jobcentre to be told this could take weeks to get sorted. I really feel for this couple as it seems they are being penalised for being honest. Both have really serious disabilities including cancer, surely this isn't right?

calcotti

Annie_wilson said: Unfortunately the couple received a letter from their council tax reduction (they don't claim housing benefit only CTR) saying their ESA has been stopped. They called about it this morning and both ESA claims have now been suspended pending the ESA3 form returning. The ESA3 was scanned in at the jobcentre last week. 

I can understand suspension of both income based ESAs until the ESA3 has been reviewed. However there is absolutely no justification for suspending the contribution based ESA and claimant number 1 should contact ESA about that. In respect of the CTR if they explain to the council what is happening the council should be willing to put a hold on the CT account for the time being.

Annie_wilson

Thank you for this. This is what I thought too. I have no idea what is going on or how to help them. Until this ESA3 is assessed I guess it is just a case of waiting.

calcotti

Annie_wilson said: Until this ESA3 is assessed I guess it is just a case of waiting.

I would definitely press for ongoing payment of the contribution based award to the person that qualifies for it. There is absolutely no justification for suspending that.