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Class 2 NI and ESA CB

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jace
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10 years 10 months ago - 10 years 10 months ago #122116 by jace

Class 2 NI and ESA CB was created by jace

Hi you clever people.
People are saying they've been told by DWP helplines that they're not entitled to contributions based benefits because they were self employed and paying Class 2 NI contributions. Now, I was put on CB ESA and I was self employed, and even HMRC are confused, giving conflicting information on separate pages. I quote and give the links below. Has the law changed and HMRC are just late updating the table I post below, or is this first quote and the advice my people are being given wrong?

Class 2 National Insurance contributions and state benefits
Class 2 contributions count towards certain benefits, like the basic State Pension, Maternity Allowance and Bereavement Benefit. But any claims for benefits may be affected if your payments are late.
Class 2 contributions do not normally count towards the additional State Pension, Statutory Sick Pay, Jobseeker's Allowance or Employment Support Allowance, so you might want to think about making other arrangements like a personal pension and income protection insurance http

://www.hmrc.gov.uk/working/intro/class2.htm

Whereas...

www.hmrc.gov.uk/ni/intro/benefits.htm

Last edit: 10 years 10 months ago by Gordon.

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Gordon
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10 years 10 months ago #122121 by Gordon

Replied by Gordon on topic Class 2 NI and ESA CB

Jade

I am not aware of any changes to the legislation that change the requirements for Contribution Based ESA.

The advice from both the DWP and HMRC has at best been confusing and as you highlight is often contradictory, the DWP regular substitute "contribution" for "credit in their correspondence and often fail to check with HMRC as to whether sufficient NICs have been accrued when refusing ESA(CB).

Extract from the Decision Makers Guide. Chapter 41. ESA Conditions of Entitlement.

41029 The first contribution condition is satisfied¹ if

1. the claimant has actually paid class 1 or class 2 NI contributions in respect of any one of the last two complete tax years before the beginning of the relevant benefit year and
2. those contributions have been paid before the relevant benefit week and
3. the claimant’s earnings for that year as determined in accordance with DMG 41030 must be at least 26 times the LEL for that year.

1 - WR Act 07, Sch 1, Part 1, para 1(1)

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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