Once ESA Contributions Based ends what now?

  • 4 Replies
  • 3427 Views

Monic1511

  • *
  • Moderator
  • Hero Member
  • *****
  • Posts: 2473
On another thread Elevenses asked "what are the other benefits that are available to someone if they are on the version of ESA that terminates after 12 months?"

Well the answer can be a bit complicated as it depends on your family situation.   The ESA that ends after 12 months is Contribution based ESA.  Similar to Contribution based JSA which only lasts for 6 months.  After your contributions expire you are subject to the means test.

The result is that if you have a partner and you are both below pension age your applicable amount (what the government says you need to exist) is 111.45 per week

Single person under 25 or lone parent under 18 56.25
Single Person over 25 under pension age 71.00
Couple rate 111.45

Carers premium 32.60
Severe Disability premium 58.20
Single Disability premium is 30.35

So if you live alone and are 45 getting DLA MRC then your applicable amount is 71.00 + 58.20 = 129.20
If your a couple and one of you gets DLA low rate then its 111.45 + 30.35 = 141.80. 

The problem with couples is that your partners income is deducted from the applicable amount and if there is a shortfall the DWP will pay that shortfall even if its only 10p. 

If your partner is working and receiving tax credits you need to notify HMRC that the household income has dropped by at least 71.00 per week (50 weeks in this tax year is 3550 of a drop in the household income)
This could result in an increase in Tax credits.

If your getting housing benefit or council tax benefit you need to tell them as well as you may be due an increase.
Some couples I've seen are now due council tax benefit but trying to encourage someone to claim 3.51 a week when they have lost 99.15 is a hard sell.

If you live alone and have an occupational pension /anuity etc then if its less than 71.00 a week you'll be due the top up.   For people who meet the criteria of the work related activity group and are single,  your basic applicable amount is 99.15, if your other income total is lower than this then you should get income related ESA and then be due full housing benefit / council tax benefit.

The only other thing I can think of that affects your income is any capital over 6000 has to be declared, if you don't tell the DWP you only have 10 in savings they treat you as if you have 6K so better to declare that your skint.

An award of DLA should still entitle you to the premiums and if your partner claims carers then the carers premium also applies.

If your at retirement age the applicable amounts are different
Single is 142.20
Couple is 217.90
problem here is that the pension age seems to be fluid so if your at this stage its better to get a proper benefit check done by CAB or welfare rights - or entitledto.com.  I've seen 60 year olds being refused pension credit as they don't meet the state retirement age yet!

I hope thats not too confusing and remember if your losing money because of the legislation changes please contact your MP and tell them how you feel at being made to foot the bill for the deficit.

Monic

Sunshine Meadows

  • *
  • Global Moderator
  • Super Hero Member
  • *****
  • Posts: 8009
Monic,

Thank you for putting that information in one post :-) I am glad you mentioned savings because the maximum amount allowed when you are receiving Income Support is as you say 6000 and on Tax Credits it is (I think) 15,000. Someone moving on to Income Based ESA could assume the limit is the same as the Tax Credit savings limit.

If people have any questions feel free to ask them here.


Sofie

  • *
  • Guest
Monic,

Thank you for putting that information in one post :-) I am glad you mentioned savings because the maximum amount allowed when you are receiving Income Support is as you say 6000 and on Tax Credits it is (I think) 15,000. Someone moving on to Income Based ESA could assume the limit is the same as the Tax Credit savings limit.

If people have any questions feel free to ask them here.

The rules for tax credits are more complex. It's the taxable income they're interested in.

Monic - for the person entitled to the severe disability premium, aren't they also entitled to the disability premium of 30.35 per week?

Monic1511

  • *
  • Moderator
  • Hero Member
  • *****
  • Posts: 2473
Hi Sofie
"for the person entitled to the severe disability premium, aren't they also entitled to the disability premium of 30.35 per week?"  my instinct was no so I went & looked up the book (still no 36 2011/2012)  and it says this
The disability premiun does not apply to either income related ESA or pension credit. Nor does it apply to Housing benefit or council tax benefit if you are claiming main phase ESA.  The disability premium can be awarded on top of an enhanced disability premium, carers premium and severe disability premium. The disability premium is only payable while the person who qualifies is under the qualifying age for pension credit.
There are 3 ways of qualifying for the premium: 
a. you meet at least on of the disability conditions or
b. the person who is, or becomes the claimant meets the incapacity conditions, or
c. for joint claims for jobseekers allowance only, you or your partner meet the limited capacility for work condition.


the book goes on to outline the disability criteria but since premiums only apply if you qualify for means tested benefits its hard to see how they can award the disability premium when the first sentance says The disability premiun does not apply to either income related ESA or pension credit.

this is where I get a bit confused and go & ask my seniors for a wee bit help since the very first training on ESA we were given said that premiums were being phased out & weren't payable with ESA  >yikes<

I hope that makes sense & you aren't even more confused now - I know I am somedays >biggrin<
Monic

Sofie

  • *
  • Guest
Thanks Monic. I did forget about the disability premium and ESA.