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Differences between income and contribution ESA?

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8 years 2 months ago #179668 by Tabby Cat
After working for over 40 years, for the past 18 months I've been on contribution based ESA, in the Support group. I've now received a letter confirming the benefit rates for this year, and it now refers to me being on income related, not contribution based.

I don't know if I should query this as I don't understand the differences between IR and CB or how they decide which you are.

I'm single, live alone and have no other income. Please can someone tell me the advantages and disadvantages of being income or contribution based in relation to my situation.

Many thanks.

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8 years 2 months ago - 8 years 2 months ago #179675 by slugsta
Hi Tabby Cat,

Welcome to the forum, you might want to have a look at the following FAQ which explain where everything is

Welcome to Benefits and Work

Contributory ESA is always awarded in preference to Income Related if the claimant is eligible. That means having paid enough NI in the past 2 full years prior to the one in which the claim was first made.

Contributory ESA is not means tested, it is paid no matter how much income or assets the claimant might have (other than income from a private pension). On the other hand, it is only payable for 365 days for claimants not in the Support Group.

Income-related ESA is an option for people who have not pain enough recent NI, if their income/assets are low enough (this includes the income, assets and working hours of any partner with whom they live). It is an automatic passport for some other benefits, such as free prescriptions. There is no time limit for payments, even when not in the Support Group.

Confusingly, income-related ESA can be paid as a top-up to claimants who are entitled to Contributory benefit but also on a low income. Even 1p of top-up passports to the other benefits. After 365 days not in the SG, the whole claim would become Income Related.

Anyone on IR ESA, in total or as a top-up, might also be entitled to ESA premiums

ESA Premiums

I hope this explains what you want to know. If you have further questions, please reply to this message and we will do our best to help. You will find it easily in future if you bookmark/favourite it on your web browser now :)

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 8 years 2 months ago by slugsta.

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