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UC and ESA payment clash
- LittleC
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4 days 2 hours ago #301998 by LittleC
UC and ESA payment clash was created by LittleC
Hi David,
I have a couple of related / similar questions to this thread.
Despite reading your very helpful guides and thinking I understood what was happening I’m now confused. I’m Migrating from IR-ESA and CB-ESA to UC and NS-ESA. I thought that I would just receive one payment monthly but I just got another ESA payment (2 weeks after the final one I was expecting) while waiting for my first UC payment. Is this whats supposed to happen or is it an error?
And related to Debbie’s other question re refusing ESA, hiw would we go about that if we wanted to do it?
Thanks so much for all your support and hard work
Chloe
I have a couple of related / similar questions to this thread.
Despite reading your very helpful guides and thinking I understood what was happening I’m now confused. I’m Migrating from IR-ESA and CB-ESA to UC and NS-ESA. I thought that I would just receive one payment monthly but I just got another ESA payment (2 weeks after the final one I was expecting) while waiting for my first UC payment. Is this whats supposed to happen or is it an error?
And related to Debbie’s other question re refusing ESA, hiw would we go about that if we wanted to do it?
Thanks so much for all your support and hard work
Chloe
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- David
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3 days 17 hours ago #302010 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic UC and ESA payment clash
Hi LittleC
Before you were Migrated to UC you would have been in receipt of Contributions Based ESA with an Income Based ESA top up. After UC Migration the IB ESA is replaced with UC but the Conts ESA carries on but is now called New Style ESA.
So you now get 2 payments one monthly for UC and one fortnightly of New Style ESA.
I would not close your New Style ESA unless you had a good reason to do so.
David
Before you were Migrated to UC you would have been in receipt of Contributions Based ESA with an Income Based ESA top up. After UC Migration the IB ESA is replaced with UC but the Conts ESA carries on but is now called New Style ESA.
So you now get 2 payments one monthly for UC and one fortnightly of New Style ESA.
I would not close your New Style ESA unless you had a good reason to do so.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: LittleC
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- LittleC
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3 days 8 hours ago #302024 by LittleC
Replied by LittleC on topic UC and ESA payment clash
Hi David,
thanks so much for the clarification.
The reason I’m asking about letting go of NS-ESA is because I’m considering increasing my hours with work which will push me over the Permitted Work Upper Earnings Limit (unless I can keep it underneath by putting some in my pension. I know thee are different rules around how this is counted across UC and ESA though, confusingly).
I’m trying to understand the implications of letting go of the ESA - what are these?
As far as I can see there shouldn’t be immediate financial implications, since ESA is deducted from UC.
But what are the other implications?
And would this affect my transitional protection?
Many thanks as always for all your amazing work
Chloe
thanks so much for the clarification.
The reason I’m asking about letting go of NS-ESA is because I’m considering increasing my hours with work which will push me over the Permitted Work Upper Earnings Limit (unless I can keep it underneath by putting some in my pension. I know thee are different rules around how this is counted across UC and ESA though, confusingly).
I’m trying to understand the implications of letting go of the ESA - what are these?
As far as I can see there shouldn’t be immediate financial implications, since ESA is deducted from UC.
But what are the other implications?
And would this affect my transitional protection?
Many thanks as always for all your amazing work
Chloe
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3 days 7 hours ago #302031 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic UC and ESA payment clash
Hi LittleC
You can refer to this internal doc from the DWP which states
Permitted Work rules apply equally to both employed and self-employed
earners. It is the net earnings which are taken into account when considering
whether the work falls into the permitted work rules
www.whatdotheyknow.com/request/volunteer...%20Earnings.pdf.html
So you can reduce your earnings to the required Permitted Work level through legitimate pension deductions.
Transitional Protection is reduced or eroded mainly by increases in the UC standard allowance. If you earn more then your UC will be reduced so this doesn't affect the Transitional Protection but your entitlement to UC in general reduces the more you earn.
With UC you only get Class 3 National Insurance Credits but with New Style ESA you get Class 1.
If you earn more than the ESA Permitted Work rules then your claim would be closed.
But the same can happen with UC if you earn a lot.
New Style ESA isn't means tested so it's impervious to unexpected events such as getting an inheritance or changes to one's household.
You will need to do a Benefits check with a calculator such as Entitledto.co.uk and then get the results checked with your local Citizens Advice or another Welfare agency.
Let me know how you get on.
David
You can refer to this internal doc from the DWP which states
Permitted Work rules apply equally to both employed and self-employed
earners. It is the net earnings which are taken into account when considering
whether the work falls into the permitted work rules
www.whatdotheyknow.com/request/volunteer...%20Earnings.pdf.html
So you can reduce your earnings to the required Permitted Work level through legitimate pension deductions.
Transitional Protection is reduced or eroded mainly by increases in the UC standard allowance. If you earn more then your UC will be reduced so this doesn't affect the Transitional Protection but your entitlement to UC in general reduces the more you earn.
With UC you only get Class 3 National Insurance Credits but with New Style ESA you get Class 1.
If you earn more than the ESA Permitted Work rules then your claim would be closed.
But the same can happen with UC if you earn a lot.
New Style ESA isn't means tested so it's impervious to unexpected events such as getting an inheritance or changes to one's household.
You will need to do a Benefits check with a calculator such as Entitledto.co.uk and then get the results checked with your local Citizens Advice or another Welfare agency.
Let me know how you get on.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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