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Group Income Protection & ESA

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5 years 2 months ago #244615 by SussexMilly
Group Income Protection & ESA was created by SussexMilly
I have been on my employer's group income protection (gip) for over 18 years and have always claimed incapacity benefit alongside this. I was automatically migrated to ESA some years ago. I continue to be employed and the gip is an employee benefit paid through payroll, and reclaimed from their insurer by my employer. They also deduct the rate of ESA. I have received a letter from DWP requiring me to undergo a telephone compliance interview. Having spoken to a member of DWP they are stating that because I haven't paid over 50% for this income protection my salary will be taken into account and I may be required to repay 18 years worth of benefit! My understanding is that as I am employed status and am paid by my company this isn't the case. They have the insurance policy with L&G not me. I am not retired or terminated. I pay tax and NI and my employee also deducts the rate of ESA (around £5k per annum). I pay pension contributions and receive employee benefits such as private healthcare. How can they be suggesting this? Surely my gip should be counted as contractual sick pay which is neither earned income nor a pension. Any advice would be gratefully received.

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5 years 2 months ago #244731 by Gordon
Replied by Gordon on topic Group Income Protection & ESA
SussexMilly

As long as you can show that you are still employed then refer the DWP to paragraph 51798 of

assets.publishing.service.gov.uk/governm...e/865728/dmgch51.pdf

and in particular clause (1)

51798 A payment under a permanent health insurance policy is a pension payment for the purposes of ESA(Cont). It means any periodical payment

1. made to a former employee and
2. which was arranged by an employer under an insurance policy and
3. which provides benefits to the former employee in connection with physical or
mental illness or disability and
4. is payable on the termination of employment.

my emphasis.

Gordon

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

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