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Entitlement to ESA

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1 year 1 month ago #283165 by Clara
Entitlement to ESA was created by Clara
I have a few questions but will start with the first one here.

UC has said I am not entitled to UC as of May 2022, as I have too many savings, I left my husband in June 2021 but we have not sold the house as I have been under immense pressure not to sell. They are classing my joint ownership of the home as savings (I have little other savings - not over £6000. I have been ill since March 2020. I received sick pay for some of the time and my employment was ended in May 2021 with a settlement.

I was in hospital for 10 months. I attempted to return to work in September 2022, but became ill after 2 weeks. I received 2 months pay, some of it will have been sick pay but I was never given pay slips. In retrospect, I returned before I was well, partly out of pressure to be free of benefits and to be financially independent. UC have requested ALL money to be repaid since June 2021, which is thousands. I also have to pay all council tax support back. I have no way of doing this. I now have nowhere to live as I have no income. I will be effectively homeless in 10 days and will have to return to the marital home. A UC case worker said I may be entitled to ESA. Would I be entitled to New Style ESA as I have not worked properly in the last 3 years. I was in the limited capability to work and work related activity before my claim was closed. They are going to provide me with a letter explaining their decision. They said if I disagree I can do a MR with evidence as to why I disagree. I have support from Citizens Advice and a Care Coordinator.

To say I am anxious is an understatement.

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1 year 1 month ago #283199 by Gordon
Replied by Gordon on topic Entitlement to ESA
C

For a New Style ESA claim made today, the DWP will use the two Tax Years 2020-21 and 2021-2022

To qualify for NS ESA you will need;

- At least 26 weeks of Class 1 or 2 NI Contributions in one of the Tax Years, these are only available through paid employment, and

- A minimum of 50 weeks of Class 1 or 2 NI Contribution and/or Class 1 NI Credits in both of the Yax Years

UC pays Class 3 Credits, which count towards the State Pension but not for NS ESA.

Gordon

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

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1 year 1 month ago #283385 by Clara
Replied by Clara on topic Entitlement to ESA
Thank you for your reply. I wondered what action you think I should take?
In April 2020-21 . I was off sick but entitled to sick pay from my employer. My record says I paid around £1300 in NI contributions - NI credits 44 weeks.
April 2021-2022 I lost my job and didn’t work at all but received a settlement for leaving my job. It says paid employment £422 - NI credits 39 weeks which I don’t understand as I didn’t work at all so no sure why NI credits are less.
April 2022- 2023 worked two months no record recorded as yet.

What I find confusing is when I worked 52 weeks part time and paid a small amount of NI is that that would be classed as a full year, but off sick and paying significantly more NI full time counts for nothing.

When someone is employed but off sick and NI is paid out of salary for the majority of the year is this classed as me paying NI or having help in terms of qualifying rules? Thank you

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1 year 1 month ago #283413 by Gordon
Replied by Gordon on topic Entitlement to ESA
C

It depends on your income.

There are two thresholds for paying/receiving NI Contributions.

- The Primary threshold: £184 per week or £797 per month, you pay Class 1 NI Contributions based on your income

- Lower earnings limit: £120 per week or £520 per month, you receive Class 1 NI Credits.

Below the Lower limit, you receive nothing in regard to National Insurance.

However, from your post, this appears to be moot as you do not meet the Second Contribution Condition which requires 50 weeks of Class 1 NI Contributions and/or Credits in each of the Tax Years.

You can still apply for New Style ESA, if an award is made you will receive Class 1 Credits that count towards a full State Pension but I'm afraid you won't receive payment for the ESA.

Gordon

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