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H2038 Premises which has not been occupied as the home & Capital Disregards UC

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10 months 3 weeks ago #286060 by SheffieldMEGroup
Client was receiving UC, ESA and PIP June 2019-Feb 2023 due to severe Post Viral Fatigue/CFS/Fibromyalgia.

Their Health had improved somewhere in the new year so she took up a remote 6-month temp contract
Finished in August 2023, but has now relapsed with health, Currently on PIP awaiting re-assessment.
Can’t re-claim new style ESA as they haven’t paid enough NI 2 contributions
Refused UC, due to the flat that they own a flat London which they had to move out of in June 19 due to ill health.
Intends to move back once better, so doesn’t wish to sell it. Tenants rent doesn’t cover the mortgage/service charge.
Even whilst working the 6 month contract, required care from parent.

In 2019, it was accepted that the premises in London was disregarded as capital and yielding income H2038 regarding Premises which has not been occupied as the home and H2038 of H2 Capital Disregards for advice for decision makers.

On 1st Dec 2023 was refused UC due to capital totals more than £16,000.

Could the above argument about UC still be valid despite it being 3 years ago since they moved back to Sheffield.
They do intend to return to the London flat when well enough, but have only been well enough to work remotely from home with care and support.

If not, would it be worth paying voluntary NI2 contributions for the last two tax years so they can claim New style ESA? (aware that can only be done 6 weeks afterwards, so UC would be preferable) - also previously done this and HMRC questioned why and if they wanted a refund.


Thank you in advance.

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10 months 3 weeks ago #286084 by Gary
Hi sheffieldMEGroup

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

Your question is outside the remit of the forum, it is also quite complex and you do need to get help from a Welfare Rights Organisation, they will be able to take all your clients circumstances into consideration; advicelocal.uk .

There are two Contribution Conditions that you need to meet for a new claim for New Style ESA.

Both are based on the two Tax Years preceding the current Benefit year, for 2023 they are 2020-21 and 2021-22.

The Second Condition requires a minimum of 50 weeks of either NI Contributions and/or NI Credits.

The First however requires a minimum of 26 weeks of NI Contributions in either of the two years. Contributions can only be acquired through paid employment, there are some exceptions but you don't mention any of these in your post.

Gary

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

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10 months 3 weeks ago #286087 by Gordon
S

I looked up H2038 in the UC Decision Makers guide, there is nothing about timescales but the worked example does refer to a temporary absence and I think you will struggle to show this when your claimant has been absent for three years.

That said, you/they have nothing to lose by trying but I would set the expectations in advance.

Gordon

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

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