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ESA 'NIL RATE' CLARIFICATION

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8 years 2 months ago - 8 years 2 months ago #149418 by bennie
ESA 'NIL RATE' CLARIFICATION was created by bennie
Hello

I wonder if you can help as I'm getting very confused about ESA 'nil rate' & its possible application - I have read some stuff here and elsewhere but it's just not clear to me when or if it would be applied in the following scenario:

1. Person in WRAG then 365 day rule applied i.e. contributions exhausted so therefore entitlement to WRAG ESA stopped.

2. Same person is moved to SG, ESA reinstated but now have a reassessment.

3. If after reassessment they are put back in WRAG, are they entitled to any income-related ESA?

4. Exactly how do DWP work out that income-related entitlement - I understand people have to fill in an ESA3, but what is counted as income (e.g. is DLA counted?) & what is the threshold after which entitlement would be nil and the 'nil rate' applied?

5. If the person appeals regarding being moved back into WRAG, how long does the whole process usually take?

6. Does ESA payment continue while appeals in process?


Thanks very much in advance for any clarification
Last edit: 8 years 2 months ago by .

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8 years 2 months ago - 8 years 2 months ago #149424 by
Replied by on topic ESA 'NIL RATE' CLARIFICATION

bennie wrote: Hello

I wonder if you can help as I'm getting very confused about ESA 'nil rate' & its possible application - I have read some stuff here and elsewhere but it's just not clear to me when or if it would be applied in the following scenario:

1. Person in WRAG then 365 day rule applied i.e. contributions exhausted so therefore entitlement to WRAG ESA stopped.

2. Same person is moved to SG, ESA reinstated but now have a reassessment.

3. If after reassessment they are put back in WRAG, are they entitled to any income-related ESA?

4. Exactly how do DWP work out that income-related entitlement - I understand people have to fill in an ESA3, but what is counted as income (e.g. is DLA counted?) & what is the threshold after which entitlement would be nil and the 'nil rate' applied?

5. If the person appeals regarding being moved back into WRAG, how long does the whole process usually take?

6. Does ESA payment continue while appeals in process?


Thanks very much in advance for any clarification


Hi b,

O.K., so points 1 and 2 of your post are statements/scenarios !

3. If you have previously been in The WRAG and exhausted your 365 days entitlement to payment of CB ESA whilst not in The SG then you were placed into The SG due to a review/supersession of your WRAG award as your medical conditions had changed or deteriorated to such an extent that you now qualified for The SG, you would no longer have entitlement to payment of any CB ESA whilst not in The SG and would have to be financially assessed for entitlement to payment of IR ESA.

If you were originally placed into The WRAG in receipt of CB ESA, requested an MR/Appeal of that decision and were then placed into The SG, as this would be a re-making of the original WRAG award, it would be as if you had never been in The WRAG.

Therefore, if you were placed into The WRAG from The SG at your next re-assessment, you would still have your full 365 days entitlement to payment of CB ESA whilst not in The SG

I can't give you a definitive answer on whether you would be entitled to any IR ESA payments if you had exhausted your 365 days payment of CB ESA whilst not in The SG, which you only get once.

This is because your maximum IR ESA entitlement may be variable with respect to your personal and financial circumstances, any savings, capital, assets, other household income and any hours worked by a partner if you have one.

This is why you would need to fill in an ESA 3 Form to capture all those details.

4. DLA or PIP is not counted as Household Income with respect to the IR ESA means test.

Some other benefits, such as CB ESA, IIDB and CA are.

Any income brought into the household by a partner, or as a result of a Works Pension will be counted as income.

See the following :

Asset rule for receipt of IR ESA

24 hour work rule for payment of IR ESA

You could put your details into one or both of these : Benefits Calculators. which should give you a good idea of any potential entitlement to IR ESA payments.

5. Irrelevant of what decision you are appealing, the whole process, including the initial MR request can take anything between 4-6 months on average.

See : "Employment and Support Allowance mandatory reconsiderations and appeals" Guidance on : This Page

&

Disability Rights UK Factsheet - Appeals and Mandatory Reconsiderations.

6. If you were MR/Appealing a WRAG award to gain access to The SG, payments of The WRAG rate would continue (Taking the comments that I have already made above regarding CB ESA and IR ESA into account), if you were entitled to payment until the WRAG decision was changed in your favour at MR stage or if not then,until a decision is made the at your Tribunal Appeal Hearing.

Being entitled to ESA CB "Payable at Nil Rate" means that you either do not have enough NI Contributions for entitlement to payment of CB ESA, or you have exhausted your 365 days entitlement to payment of CB ESA and cannot pass the means test for payment of IR ESA.

You would therefore receive NI Credits only, which would go towards your State Pension entitlement only.

There is also the scenario of being entitled to payment of IR ESA Premiums, see : This Post.

Have a read through this : Age UK IR ESA Factsheet which may help with your understanding of this matter.

This Post may also help.

Finally, see : 12 Month Limit for ESA(CB)

From our : ESA FAQ’s

bro58
Last edit: 8 years 2 months ago by .

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8 years 2 months ago #149432 by bennie
Replied by bennie on topic ESA 'NIL RATE' CLARIFICATION
Hi Thanks so much for this info.

I think I understand now :unsure:

In the scenario, (3) applies i.e. the 365 days *have* been used, went from WRAG to SG *after* contributions exhausted so if were put back in WRAG, IR ESA *would* have to be applied for...

In that case, if income=nil and savings=less than £16k, put into one of the benefits calculators it would seem there is still eligibility though reduced according to savings over £6k.

I hope that's the case anyway, and that hopefully DWP would pay *some* IR ESA...!

Will look in more detail at the Age UK and other stuff.

Thanks so much for prompt response & info, eased my mind a bit :-)

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8 years 2 months ago #149439 by Gordon
Replied by Gordon on topic ESA 'NIL RATE' CLARIFICATION
Bennie

Don't forget that a partner's income will be included to and if they work 24 or more hours a week then you cannot make a claim for ESA(IR).

Gordon

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