What is ESA

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Alex260617
Alex260617 Online Community Member Posts: 92 Contributor
in Employment and Support Allowance (ESA)
Evening everyone, I've never claimed benefits in my life but recently I lost my business and became unwell with mental health. 

I received universal credit single allowance and I'm awaiting my assessment for limited work capability but I have been approved for PIP for higher rate mobility and higher rate daily living. 

Is ESA universal credit or is it something totally separate than can be claimed on top of everything else I'm confused. 

I'm finding it hard to adapt to life following losing my business as I was earning very good money so to from that to having to live of £300 on universal credit I'm struggling even further. 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    New style ESA can be claimed if you’ve paid the correct amount of NI contributions in tax years April 2019 to March 2021. 
    There’s no financial gain to claiming both the ESA and UC at the same time because it’s deducted in full from any UC entitlement. 
    The only difference is it pays class 1 NI and UC pays class 3. It’s also not means tested like UC so if you’ve paid those NI contributions then it’s worth claiming it.
    You will need a fit note if you claim this. You will only need one work capability assessment even if you claim both. 
  • AndrewHall
    AndrewHall Online Community Member Posts: 317 Empowering
    @poppy123456

    Am I right in thinking you get Class 1 NI credits for being on LCW, and after two tax years, you will be entitled to contribution ESA.

    Thanks
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    AndrewHall said:
    @poppy123456

    Am I right in thinking you get Class 1 NI credits for being on LCW, and after two tax years, you will be entitled to contribution ESA.

    Thanks
    Yes you get class 1 when claiming New style if found to have LCW. NI credits alone will not entitle you to any payments. It will remain a credits only claim.
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited August 2022
    AndrewHall said:
    @poppy123456

    Am I right in thinking you get Class 1 NI credits for being on LCW, and after two tax years, you will be entitled to contribution ESA.

    Thanks
    You are right that you can get Class 1 Credits while on a ‘Credits only’ claim for LCW but you cannot claim new style ESA based on Credits alone  so would need a period of Work giving you Class 1 contributions to become eligible for new style ESA.
    https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based
  • AndrewHall
    AndrewHall Online Community Member Posts: 317 Empowering
    Many thanks to @poppy123456 and @calcotti
  • Alex260617
    Alex260617 Online Community Member Posts: 92 Contributor
    So if i paid national insurance in those periods mentioned am i best switching to ESA from UVC?
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Your UC will continue and the New style ESA will be deducted in full from any UC entitlement. 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited August 2022
    Awiddup13 said:
    So if i paid national insurance in those periods mentioned am i best switching to ESA from UVC?
    You wouldn’t switch, you would simply get fortnightly ESA payments and still get monthly UC payments. The total amount of money would be same as on UC only (unless the ESA is more than your UC entitlement).
  • Alex260617
    Alex260617 Online Community Member Posts: 92 Contributor
    @calcotti is there a tool online where i can check?

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited August 2022
    Awiddup13 said:
    @calcotti is there a tool online where i can check?
    Check what?
    There are benefit calculators here
    https://www.entitledto.co.uk/
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Awiddup13 said:
    @calcotti is there a tool online where i can check?

    For New style ESA it will depend on your NI contributions from working in the previous 2 tax years, as advised.
  • AndrewHall
    AndrewHall Online Community Member Posts: 317 Empowering
    Awiddup13 said:
    So if i paid national insurance in those periods mentioned am i best switching to ESA from UVC?

    Unfortunately, UC was dubiously designed to trap people without "switching". That is why people are reluctant to go on it and Government are deceiving people to go on it. I know some secret DWP agents on here would disagree. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    AndrewHall said:
    Awiddup13 said:
    So if i paid national insurance in those periods mentioned am i best switching to ESA from UVC?

    Unfortunately, UC was dubiously designed to trap people without "switching". 
    That makes no sense because no one is automatically placed onto UC without actually claiming it. 
    AndrewHall said:
    I know some secret DWP agents on here would disagree. 
    Who exactly would that be? I’m not aware of anyone here. 
  • AndrewHall
    AndrewHall Online Community Member Posts: 317 Empowering
    edited August 2022
    @poppy123456

    I never said people get automatically get placed on UC. I said people get "trapped in it" and "Government are deceiving people to go on it".
    Not surprisingly my comment would be twisted. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    AndrewHall said:
    @poppy123456


    Not surprisingly my comment would be twisted. 

    If that's what you think, then you can carry on thinking that. I'm out!

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