Hi All, Don't know if anyone else has come across this? Transitioned to UC beginning of May and was told my "Income" Related ESA would stop (fair enough). However, ESA are now paying me "Contribution" Based ESA as well as UC, looked at my 1st statement and they have paid my rent by arrangement and taken back the Contribution Based ESA that's been paid in the month to me, leaving me with around £450. I thought my ESA would cease completely and I would get one payment of UC after rent deducted. Has anyone else had this happen? Confusing isn't it! I thought UC was replacing ESA completely. Contacted UC Helpline, and the chap said that the above is perfectly normal. Very confusing and complex when budgeting.
Part of your ESA will have been contributions based with the remainder being income related ESA. It is only the income related part of ESA that is migrating to UC (along with any housing costs that were covered by Housing Benefit, another means tested benefit). Your contributory ESA continues to be paid fortnightly.
The end result is that when you receive your UC, the monthly equivalent amount of (contributory, now known as new-style) ESA you are continuing to receive is deducted as income from UC.
