Income Based Versus Contribution Based Benefits
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gjw59help
Community member Posts: 68 Courageous
Having been on ESA for a while I receive the DWP letter every year saying "you are entitled to *** however as you have paid your contributions you will get ***"
Therefore I am classed as on Contribution Based ESA but not entitled to any of the benefits of Income Based ESA despite being on the same low income,I cannot get The Warm Home Discount etc etc I think someone needs to look at changing these rules as many people on low incomes are missing out and the only option is a Food Bank
Therefore I am classed as on Contribution Based ESA but not entitled to any of the benefits of Income Based ESA despite being on the same low income,I cannot get The Warm Home Discount etc etc I think someone needs to look at changing these rules as many people on low incomes are missing out and the only option is a Food Bank
Comments
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If you are not entitled to income based ESA (assuming you are legacy benefits) then it means that if you were getting income based ESA rather than contribution based ESA your ESA payments would almost certainly be lower.
Have you used a benefits calculator or got an advice agency to do a benefits check to check you are claiming everything you are entitled to?
I see from your previous post
I am 61 and on old style ESA contribution based support group — Scope | Disability forum
that you have an older wife who is now in receipt of her State Pension.
You could have your ESA checked to see whether you have any entitlement to income based ESA. Because your wife is a pensioner you would be entitled to an additional amount called the pensioner premium in the calculation. However if she gets the full State Pension of £179.60/week there will be no income based ESA entitlement.
ESA standard couple allowance £117.40
Pensioner premium and Support component £152.90
Maximum ESA £270.30
Assuming State Pension, say £179.60 (and no other income or savings over £6,000)
Maximum Income based ESA payable = £90.70
Contribution based ESA £114.10 is in excess of this so no income based ESA is payable.
In this scenario if you didn't get contribution based ESA you would get £23.40 less per week which would be £1,216 less per year whereas the Warm Home Discount is only £140/year.
Do you or she claim any other benefits?Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
There are reasons why some people qualify for income based and others don't, do you have a partner who works? do you have savings in excess of £16,000?2024 The year of the general election...the time for change is coming 💡
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I note from a previous thread in 2020 that your wife was close to claiming her state pension, is she now claiming this?Do you rent or own your own home?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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No savings at all and my wife is on new state pension
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We own our home and get council tax reduction
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If she gets full state pension this would mean there will be no entitlement to Universal Credit because her pension and your ESA would be deducted in full which means UC is reduced to zero.It sounds like you’re both claiming everything you’re entitled to.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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Believe it or not you are actually better off because your ESA is contributions based.
If it was Income Related then it would have ended when your wife claimed their state pension. As a mixed aged couple you would have had to claim Universal Credit which would mean a very small amount paid each month because of the deductions for her state pension. UC payable would be a lot less than your ESA is now.
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. -
Thanks for the advice it's just that Electric and Gas has doubled in the last year and food up 10% so in and out of emergency credit and overdraft so just about getting by,dreading more price increases
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poppy123456 said:If it was Income Related then it would have ended when your wife claimed their state pension. As a mixed aged couple you would have had to claim Universal Credit
However, as per my calculation above, if OP was not entitled to contribution based ESA they would be significantly worse off because the ESA would be lower due to the pension deduction.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
Thanks calcotti, i didn't realise that. I also didn't see your calculation above until just now, not sure how i missed it but using my phone instead of my desktop never helps.
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. -
In answer to Calcotti I get the support group component adding up to £114 and no other benefits apart from wife on new state pension
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poppy123456 said:Thanks calcotti, i didn't realise that.poppy123456 said:I also didn't see your calculation above until just now, ..
Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
gjw59help said:In answer to Calcotti I get the support group component adding up to £114 and no other benefits apart from wife on new state pensionInformation I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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gjw59help said:Thanks for the advice it's just that Electric and Gas has doubled in the last year and food up 10% so in and out of emergency credit and overdraft so just about getting by,dreading more price increases2024 The year of the general election...the time for change is coming 💡
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woodbine said:...food inflation is only around 1%
https://www.grocerygazette.co.uk/2022/02/02/food-inflation-at-highest-point-since-2013-brc-reveals/
Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
Try telling that to my shopping bill,it's there in black and white gone up 10% as I buy the same every week also my Gas and electric have ALREADY doubled and I am on the cheapest prepayment going as for the council tax it won't affect us as we get a rebate so basically all you said was wrong
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calcotti said:woodbine said:...food inflation is only around 1%
https://www.grocerygazette.co.uk/2022/02/02/food-inflation-at-highest-point-since-2013-brc-reveals/
2024 The year of the general election...the time for change is coming 💡 -
@calcotti thanks for explaining that. I will remember this in future.Coming back to my advice above, my apologise for giving incorrect information to the OP.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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Username_removed said:Sigh. Facts. Not difficult to find. Actual food inflation.
https://tradingeconomics.com/united-kingdom/food-inflationwoodbine said:everyone will get the £150 council tax rebate in April plus the £200 utility bill loan as well.
The £200 loan is potentially, well likely, disastrous given that the timescales for repayment mean that debts accrued by many households in the interim will leave them with the unavoidable repayment of a debt which will put them into further debt. Top idea loaning people money where the repayment will exacerbate poverty.Read this and weep. A fantastic piece of conmanship aimed at the terminally gullible. There is surely stand up comedy in this.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1053576/Cost_of_living_factsheet__energy__v2.pdf
V1 was presumably followed by the author being stood over by a bloke with scruffy blond hair and a Prosecco in hand saying :… but what about…?”.
I think in all honesty that the govt. hopes that by next year prices and therefore the cap will have fallen. But look at it another way my electric bill is around £400 a year, that might go up by £150 to £550 but I will still get the £200 loan.
https://www.lgcplus.com/finance/exclusive-over-two-thirds-of-councils-to-raise-council-tax-by-maximum-permitted-05-01-2022/
The maximum permitted without a referendum is 1.99% plus 1% for social care2024 The year of the general election...the time for change is coming 💡 -
gjw59help said:Try telling that to my shopping bill,it's there in black and white gone up 10% as I buy the same every week also my Gas and electric have ALREADY doubled and I am on the cheapest prepayment going as for the council tax it won't affect us as we get a rebate so basically all you said was wrong
For electric we have been paying £36 a month for the last 6 months and we are neither in credit or debit, we are off line for gas and use LPG which has only increased by 20% since this time last year (and it's the dearest gas you can use).2024 The year of the general election...the time for change is coming 💡
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