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ESA and other income

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12 years 4 months ago #74574 by carruthers
Replied by carruthers on topic Re:ESA and other income
bro58 wrote:

carruthers wrote:

Does the income taken into account for ESA mean household income or personal income only?

Hi C,

It's household income.

See information on this page, and the link within regarding 24 hours working rule for a partner.

www.benefitsandwork.co.uk/forum?func=vie...mit=6&start=12#71526

bro58

Sorry, still struggling with this one. The link you give is about ESA(IR). I was enquiring about payments for ESA(CB)

From previous posts I understand that the rates of contribution-based ESA are also reduced if you have an occupational pension.

Thus - if I have it right - it goes like this.

Take someone (anyone) who is entitled to the Support Group rate, which we'll call £100 a week (to make the maths easy!). They have all the contribution records to get CB-based ESA. Suppose they have an occupational pension of £300+ per week. The calculation goes:

£300- £85 = £215
£215/2 = £107.50

£117.50 would then be deducted from the notional £100 of ESA(CB) at the SG rate, leaving an entitlement to no money at all.

So there is no point someone in that position claiming ESA, regardless of their contribution record or their health. Not even for the first 12 months (taking account of new legislation, which we're assuming will go through.)

Is that correct?

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  • bro58
12 years 4 months ago - 12 years 4 months ago #74581 by bro58
Replied by bro58 on topic Re:ESA and other income
carruthers wrote:

bro58 wrote:

carruthers wrote:

Does the income taken into account for ESA mean household income or personal income only?

Hi C,

It's household income.

See information on this page, and the link within regarding 24 hours working rule for a partner.

www.benefitsandwork.co.uk/forum?func=vie...mit=6&start=12#71526

bro58

Sorry, still struggling with this one. The link you give is about ESA(IR). I was enquiring about payments for ESA(CB)

From previous posts I understand that the rates of contribution-based ESA are also reduced if you have an occupational pension.

Thus - if I have it right - it goes like this.

Take someone (anyone) who is entitled to the Support Group rate, which we'll call £100 a week (to make the maths easy!). They have all the contribution records to get CB-based ESA. Suppose they have an occupational pension of £300+ per week. The calculation goes:

£300- £85 = £215
£215/2 = £107.50

£117.50 would then be deducted from the notional £100 of ESA(CB) at the SG rate, leaving an entitlement to no money at all.

So there is no point someone in that position claiming ESA, regardless of their contribution record or their health. Not even for the first 12 months (taking account of new legislation, which we're assuming will go through.)

Is that correct?


Hi C,

Once a claimant has exhausted their 365 days entitlement of Contributory ESA, any former disregard with respect to OP, ceases.

Therefore any such income from OP, would all then be classed as household income with respect to the means test, and any entitlement to Income Related ESA.

bro58
Last edit: 12 years 4 months ago by bro58.

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  • bro58
12 years 4 months ago #74586 by bro58
Replied by bro58 on topic Re:ESA and other income
bro58 wrote:

carruthers wrote:

bro58 wrote:

carruthers wrote:

Does the income taken into account for ESA mean household income or personal income only?

Hi C,

It's household income.

See information on this page, and the link within regarding 24 hours working rule for a partner.

www.benefitsandwork.co.uk/forum?func=vie...mit=6&start=12#71526

bro58

Sorry, still struggling with this one. The link you give is about ESA(IR). I was enquiring about payments for ESA(CB)

From previous posts I understand that the rates of contribution-based ESA are also reduced if you have an occupational pension.

Thus - if I have it right - it goes like this.

Take someone (anyone) who is entitled to the Support Group rate, which we'll call £100 a week (to make the maths easy!). They have all the contribution records to get CB-based ESA. Suppose they have an occupational pension of £300+ per week. The calculation goes:

£300- £85 = £215
£215/2 = £107.50

£117.50 would then be deducted from the notional £100 of ESA(CB) at the SG rate, leaving an entitlement to no money at all.

So there is no point someone in that position claiming ESA, regardless of their contribution record or their health. Not even for the first 12 months (taking account of new legislation, which we're assuming will go through.)

Is that correct?


Hi C,

Once a claimant has exhausted their 365 days entitlement of Contributory ESA, any former disregard with respect to OP, ceases.

Therefore any such income from OP, would all then be classed as household income with respect to the means test, and any entitlement to Income Related ESA.

bro58


Just to add, that any time spent in the support group, does not count towards the 365 day entitlement.

bro58

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  • bro58
12 years 4 months ago #74587 by bro58
Replied by bro58 on topic Re:ESA and other income
bro58 wrote:

bro58 wrote:

carruthers wrote:

bro58 wrote:

carruthers wrote:

Does the income taken into account for ESA mean household income or personal income only?

Hi C,

It's household income.

See information on this page, and the link within regarding 24 hours working rule for a partner.

www.benefitsandwork.co.uk/forum?func=vie...mit=6&start=12#71526

bro58

Sorry, still struggling with this one. The link you give is about ESA(IR). I was enquiring about payments for ESA(CB)

From previous posts I understand that the rates of contribution-based ESA are also reduced if you have an occupational pension.

Thus - if I have it right - it goes like this.

Take someone (anyone) who is entitled to the Support Group rate, which we'll call £100 a week (to make the maths easy!). They have all the contribution records to get CB-based ESA. Suppose they have an occupational pension of £300+ per week. The calculation goes:

£300- £85 = £215
£215/2 = £107.50

£117.50 would then be deducted from the notional £100 of ESA(CB) at the SG rate, leaving an entitlement to no money at all.

So there is no point someone in that position claiming ESA, regardless of their contribution record or their health. Not even for the first 12 months (taking account of new legislation, which we're assuming will go through.)

Is that correct?


Hi C,

Once a claimant has exhausted their 365 days entitlement of Contributory ESA, any former disregard with respect to OP, ceases.

Therefore any such income from OP, would all then be classed as household income with respect to the means test, and any entitlement to Income Related ESA.

bro58


Just to add, that any time spent in the support group, does not count towards the 365 day entitlement.

bro58


See this FAQ also with respect to OP disregard. :

www.benefitsandwork.co.uk/forum?func=vie...mit=6&start=24#73339

bro58

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12 years 4 months ago #74593 by Gordon
Replied by Gordon on topic Re:ESA and other income
carruthers

Excluding the Transitional Protection available for those being transferred from IB to ESA, the pension income rules for ESA are exactly the same as those for IB.

Gordon

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

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12 years 4 months ago #74615 by carruthers
Replied by carruthers on topic Re:ESA and other income

Hi C,

Once a claimant has exhausted their 365 days entitlement of Contributory ESA, any former disregard with respect to OP, ceases.

Therefore any such income from OP, would all then be classed as household income with respect to the means test, and any entitlement to Income Related ESA.

bro58

I can see that this is obvious to you, but it is not clear to me:

Is the OP disregarded during the initial 365 days entitlement to Contributory ESA when dealing with a new claim (not a migration from IB)?

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