Current ESA claim and potential capability dismissal

bluefox

Would my current ESA claim in the support group be affected by a capability dismissal payout if that payout is in three payments. 12 weeks worth of pay, paid over 3 months?

I rang the ESA line and they said no but I’m unsure if this is correct. 

poppy123456

Are you claiming UC as well as ESA?

bluefox

I am yes. For the housing element. 

calcotti

If the pay is taxable and is put through PAYE in the normal way it will count as earnings for UC purposes and as such subject to a 55% deduction (excluding any applicable UC Work Allowance) in the normal way.

However if any part of the payments fall to be non taxable they would not count as earnings for UC.

bluefox

Will I lose my ESA?

calcotti

sierrafox said:

Will I lose my ESA?

Your ESA is contribution based and is not means tested so is not affected.

sierrafox said:

I am yes. For the housing element. 

Unless you have income other than your ESA your UC should be paying more than just the housing element because the LCWRA and standard allowance of UC  is worth more than the ESA (assuming you are aged at least 25).

bluefox

I get a little bit of LCWRA from Universal Credit too. 

But won’t the capability payout be classed as a wage for 3 months? 

calcotti

sierrafox said:

I get a little bit of LCWRA from Universal Credit too. 

But won’t the capability payout be classed as a wage for 3 months? 

Yes it’s a wage but it doesn’t affect ESA because you are not working. It’s the same as if you were receiving occupational sick pay, that would make no difference to ESA.

It will affect the UC.