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TOPIC: incapcity benifit

incapcity benifit 7 years 3 months ago #41984

Thank you gordon for your very prompt and sound advice on my question listed on 4/1/2011.
I have read the understand ESA document you mentioned but still need some advice on pionts in your reply and would appretiate clarifaction on them if you could.

As i have not worked since 1993 i will be assuming i will be put in the support group. Im assuming this as all my previous IB50(hope that is right name) forms ive filled in have not required me to attend a medical assesment as i have allways scored enough pionts to aviod this.

As i have not worked since 1993 would i be claseed as paying my ni contributions? Am i right in thinking the DWP pay my contributions for me whilst not working? if this is the case would i be put in the ESA(cb)group?
If im put in the ESA(CB) group and assuming im put in the support group due to my physical and mental condition, do the same rules apply regards means testing with the restrictions on assets, the number of hours my wife works etc as she currently works 32 hours per week?
Also as i claimed incapacity benifit pre 1995 my incapcity benifit is not taxed how will any new rules affect me ? Will i be taxed on any new ESA i would receive?
Im sorry if im not getting my point across quite clearley both my wife and i do not understand these very complex changes etc and are simply worried that are current incapcity benifit i receive currently around £93 per week will soon dissapear.
Thanks again

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Re:incapcity benifit 7 years 3 months ago #41995

skyblue wrote:

Thank you gordon for your very prompt and sound advice on my question listed on 4/1/2011.
I have read the understand ESA document you mentioned but still need some advice on pionts in your reply and would appretiate clarifaction on them if you could.

As i have not worked since 1993 i will be assuming i will be put in the support group. Im assuming this as all my previous IB50(hope that is right name) forms ive filled in have not required me to attend a medical assesment as i have allways scored enough pionts to aviod this.

Got it from the Low Incomes Tax Reform Groups site

News- Long term sick to become much poorer
'Employment and support allowance (ESA) was introduced in October 2008 and from that date no new claims to incapacity benefit (IB) have been allowed.
There are two types of ESA – the non-taxable ‘income-based’ and the taxable ‘contribution-based’. As the names suggest, claimants qualify for the former if they are on very low incomes, but qualification for the latter is based upon claimants’ employment history and resulting National Insurance contributions record.
Proposed changes
People who have been on IB since April 1995 or before – former invalidity benefit claimants – will lose out in the amount of cash they have in their pockets. Hitherto, they have received IB tax-free. Now, this ‘transitional protection’ given at the time of the switch in 1995 to IB is to be discontinued.
The people affected are likely to be among those with the most permanent and difficult disabilities.
The complex impact on former invalidity benefit claimants
A simple switch from tax-free IB to taxable ESA is itself significant, giving many in the affected group a 20% reduction in their benefit to the extent that it exceeds their personal allowances for tax; but even more worrying is the impact on the tax credits claim of the household.
The tax-free IB is currently excluded from the income calculation for tax credits. But when it is replaced by taxable ESA, under current tax credit rules, the benefit will be included in the calculation, and that could result in tax credits being taken away at the rate of 39p in the £.
Moreover, ‘passported benefits’ – such as help with housing, council tax, healthcare costs and prescription charges – could be lost. So overall, an additional tax liability coupled with reduced tax credits and other benefits could leave the household dramatically worse off.' Please note: although no board code and smiley buttons are shown, they are still usable.
headinawheelchair





As i have not worked since 1993 would i be claseed as paying my ni contributions? Am i right in thinking the DWP pay my contributions for me whilst not working? if this is the case would i be put in the ESA(cb)group?
If im put in the ESA(CB) group and assuming im put in the support group due to my physical and mental condition, do the same rules apply regards means testing with the restrictions on assets, the number of hours my wife works etc as she currently works 32 hours per week?
Also as i claimed incapacity benifit pre 1995 my incapcity benifit is not taxed how will any new rules affect me ? Will i be taxed on any new ESA i would receive?
Im sorry if im not getting my point across quite clearley both my wife and i do not understand these very complex changes etc and are simply worried that are current incapcity benifit i receive currently around £93 per week will soon dissapear.
Thanks again

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Re:incapcity benifit 7 years 3 months ago #42008

skyblue wrote:

Thank you gordon for your very prompt and sound advice on my question listed on 4/1/2011.
I have read the understand ESA document you mentioned but still need some advice on pionts in your reply and would appretiate clarifaction on them if you could.

As i have not worked since 1993 i will be assuming i will be put in the support group. Im assuming this as all my previous IB50(hope that is right name) forms ive filled in have not required me to attend a medical assesment as i have allways scored enough pionts to aviod this.

As i have not worked since 1993 would i be claseed as paying my ni contributions? Am i right in thinking the DWP pay my contributions for me whilst not working? if this is the case would i be put in the ESA(cb)group?
If im put in the ESA(CB) group and assuming im put in the support group due to my physical and mental condition, do the same rules apply regards means testing with the restrictions on assets, the number of hours my wife works etc as she currently works 32 hours per week?
Also as i claimed incapacity benifit pre 1995 my incapcity benifit is not taxed how will any new rules affect me ? Will i be taxed on any new ESA i would receive?
Im sorry if im not getting my point across quite clearley both my wife and i do not understand these very complex changes etc and are simply worried that are current incapcity benifit i receive currently around £93 per week will soon dissapear.
Thanks again


To be honest i would not assume that you will be put in the support group as this is a very difficult group to get in.

If you are put in WRG then you would have a 1 year time limit on your ESA after that you would have to see if you quaulify for income related ESA which is means tested.

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Re:incapcity benifit 7 years 3 months ago #42010

Whilst you have been of work because of illness since 1993 you will have been paid National Insurance credits which are explained below

www.direct.gov.uk/en/MoneyTaxAndBenefits...lInsurance/DG_190059

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Re:incapcity benifit 7 years 3 months ago #42025

  • Gordon
  • Away
  • Posts: 35506
skyblue

I am afraid that if you are looking for difinitive answers, you will need seek face to face advice with a suitable advisor, as we cannot be aware of all the factors that might affect a claim.

Whilst you might, as a result of disabilities, be put in the Support Group, I don't think you can assume this as a result of your previous IB history, The tests, for both the WRAG and the SG, whilst similar, are nonetheless, fundamentally different from those used for IB.

To be put in the Support Group, you need to demonstrate that you meet one or more of the criteria listed on page 25 of the "Understanding ESA" document.

My understanding is that IB claimants who are successfully transferred to ESA, will initially be put on ESA(CB).

The one year limitation will only apply to members of the WRAG, not those in the Support Group.

With regard to the tax free element of your current claim, my understanding is that this issue has still not been resolved, however, for the first time yesterday, I saw an unofficial document suggesting that the tax free status will be lost on transfer to ESA.

Transfers are expected to be based on IB renewal date, so this should give you an idea of when your transfer might occur.

Regards

Gordon

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

Re:incapcity benifit 7 years 3 months ago #42027

  • originaldave
skyblue wrote:

Thank you gordon for your very prompt and sound advice on my question listed on 4/1/2011.
I have read the understand ESA document you mentioned but still need some advice on pionts in your reply and would appretiate clarifaction on them if you could.

As i have not worked since 1993 i will be assuming i will be put in the support group. Im assuming this as all my previous IB50(hope that is right name) forms ive filled in have not required me to attend a medical assesment as i have allways scored enough pionts to aviod this.

As i have not worked since 1993 would i be claseed as paying my ni contributions? Am i right in thinking the DWP pay my contributions for me whilst not working? if this is the case would i be put in the ESA(cb)group?
If im put in the ESA(CB) group and assuming im put in the support group due to my physical and mental condition, do the same rules apply regards means testing with the restrictions on assets, the number of hours my wife works etc as she currently works 32 hours per week?
Also as i claimed incapacity benifit pre 1995 my incapcity benifit is not taxed how will any new rules affect me ? Will i be taxed on any new ESA i would receive?
Im sorry if im not getting my point across quite clearley both my wife and i do not understand these very complex changes etc and are simply worried that are current incapcity benifit i receive currently around £93 per week will soon dissapear.
Thanks again


You miss the point of the new ESA from the DWP point of view, there have been so many people on IB for so long like yourself, and there point of view is some should not even be on IB and others should be looking at work in the future.

and a small number should be in the support group.. not even people exempt IB50s can all expect to get in support group

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