Applying for ESA and Ni contributions

Markey

Hi everyone, I'm currently waiting for my ESA assessment, I have COPD and depression. I only started claiming UC 3 months ago, (I'd been living off savings since I stopped work 12 mths ago so I couldn't claim UC before, and I didn't know about PIP) Today I had my PIP phone assessment which I think went well. My question is I'm currently subject to the benefit cap, assuming I'm put in the support group will any backpay repay the £120 a month that the cap is taking off me and I'm confused by the Ni contributions. I have paid self employed Ni in recent years, does having Ni contributions make any difference to ESA payments, many thanks

poppy123456

If you're successfully awarded PIP then you will be excluded from the benefit cap. You will then receive all the money that's owed from the start of your PIP award but you will need to report the changes onto your journal that you're now claiming PIP.

You mention UC and ESA, are you aware that ESA is a separate benefit to UC. New style ESA can be claimed providing you've paid the correct amount of NI contributions in tax years April 2019 to March 2021.

If you claim both ESA and UC together you won't be financially better off because the ESA is deducted in full from any UC entitlement. The ESA will pay class 1 and UC will pay class 3 NI credits.

Markey

Thank you for your reply, You say I wont be better off but at moment I only get £77 pw UC (although they take off £27 pw for benefit cap,). I thought ESA payment was higher than basic £77 pw ?

poppy123456

There's no financial gain to claiming both ESA and UC at the same time because it's deducted from your UC entitlement. New style ESA for over 25's is £77/week. If placed into the Support Group it increases to £117.60/week from the 14th week of your claim.

In another thread you said you're waiting for your work capability assessment for UC. If found to have LCWRA then you will be excluded form the benefit cap. You will also be entitled to an extra £354.28/month from the 4th month after you reported your health condition.

calcotti

Markey said:

Thank you for your reply, You say I wont be better off but at moment I only get £77 pw UC (although they take off £27 pw for benefit cap,). I thought ESA payment was higher than basic £77 pw ?

ESA will pay £117.60/week if you are found to have LCWRA. This amount will then be deducted from your UC which will itself be increased by the LCWRA element.