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New Style ESA, Private pension and Tax free childcare

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10 months 8 hours ago #287130 by Mowgsy7
Dear Moderator,

I have recently had my ill-health tier 1 pension application accepted. As a result, this wipes out the contributions based new style ESA payment.

Currently, I am able to get tax free childcare because of ESA and in April the government are rolling out 30 hours free childcare.

On the government website, it states that I will be get class 1 national insurance credits. Would you happen to know whether it is this that classifies me as working?

I appreciate that this is a pretty niche inquiry.

Kind regards

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9 months 4 weeks ago #287155 by Gary
Hi Mowgsy7

I have absolutely no idea, as a guess I would say yes, as it's class 1 NI credit.

If you received an occupational or personal pension that pays more than £85 a week then your contributory ESA payment is reduced by half of the amount over this limit. For example, if you receive £105 a week before tax from a personal pension , your ESA is reduced by £10, ie half of the excess figure of £20. If you receive more than one pension then they are added together for the calculation.

Hopefully Gordon may read this post and give you an answer to your question.

Gary

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

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9 months 4 weeks ago #287162 by Gordon
M

NI Credits are paid under National Insurance legislation, not ESA, the payment is made because you are considered to still have Limited Capability for Work.

I think you can only show you are working by working, the NI Credits are not going to do this for you, quite the opposite in my opinion.

Gordon

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

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