Universal Credit and New Style ESA/JSA
7501x
Online Community Member Posts: 57 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?
- 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 
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Comments
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Correct.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.
You get Class 1 NI credits for ESA, Class 3 for UC (for most people this isn't significant).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?
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.)
Yes (qualifying for LCWRA is equivalent to ESA Support Group) - but you are no better off financially as you have noted.7501x said:- Can you get new style ESA and LCWRA at the same time?0 -
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 🤦🏻♀️0 -
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.1
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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.1 -
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.
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It has nothing to do with the benefit cap. ESA will always be deducted in full from any UC payment.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?
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:
also in terms of receiving LCWRA and new style ESA, so essentially you could receive approximately an extra £700 a month if awarded both?
The main reason is the last one of those I posted7501x 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.
In other words claiming ESA (if entitled) protects some of your income from possible future changes which might end entitlement to UC.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).0 -
Does esa get increased after being on it after 6 months0
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No. You get the Support Group component added if placed in the Support group. It is payable from the 14th week.Metja12345 said:Does esa get increased after being on it after 6 months0 -
I know a person who gets £200 a week0
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They could be on the old income-related benefit which includes different premiums.Metja12345 said:I know a person who gets £200 a week0 -
Metja12345 said: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.
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