ESA

I am so sorry it's me again but I am getting worried again. When we go on ESA will we automatically lose money or will we have to fail the medical for this to happen? Further, what's the difference between a medical and WCA and do we get both?

Tony wrote:

I am so sorry it's me again but I am getting worried again. When we go on ESA will we automatically lose money or will we have to fail the medical for this to happen? Further, what's the difference between a medical and WCA and do we get both?

Under the transitional procedures for migrating IB claimants to ESA, no claimant should lose out financially.

The medical assessment which forms part of the WCA is the only way the DWP can terminate an award of benefit, unless of course you no longer meet the conditions of entitlement, for example, if you start work following a period of sickness.

Tony wrote:

I am so sorry it's me again but I am getting worried again. When we go on ESA will we automatically lose money or will we have to fail the medical for this to happen? Further, what's the difference between a medical and WCA and do we get both?

Crazydiamond wrote:
Under the transitional procedures for migrating IB claimants to ESA, no claimant should lose out financially.

On my understanding when i get transfered from IB to ESA i will lose out, because i will lose the tax exemption for ESA which i have got with IB at the present time.

Gary wrote:

Tony wrote:

I am so sorry it's me again but I am getting worried again. When we go on ESA will we automatically lose money or will we have to fail the medical for this to happen? Further, what's the difference between a medical and WCA and do we get both?

Crazydiamond wrote:
Under the transitional procedures for migrating IB claimants to ESA, no claimant should lose out financially.

On my understanding when i get transfered from IB to ESA i will lose out, because i will lose the tax exemption for ESA which i have got with IB at the present time.

I cannot find anything in the transitional procedures or in the The Employment and Support Allowance Regulations 2008 about the removal of the tax exemption status?

That doesn't mean it won't happen, and therefore it should be checked out with HMRC, as it may be included in the tax regulations as opposed to the social security regulations

I know they talked about getting rid of IB's age addition because it was seen as a 'perverse incentive' to stay on benefit, but I don't know if this will effect people who already receive it?

I have a very differnt perception of what is 'perverse' concerning our benefit system ...

A link was posted a few weeks back to a report from Jan 2010 which states that people previously exempt from tax whilst on IB will now be liable to taxation.

The following quotes are taken from page 12 of 103 page document (and a lot of it is quite an interesting read):

www.ssac.org.uk/pdf/employment_and_support_allowance_regs.pdf

6.16 Subject to HMT agreement, on conversion to contributory ESA from IB, it is planned customers will be liable to income tax on their ESA in the same way as new contributory ESA customers. This will include those customers who have previously received IB with no tax liability, such as former Invalidity Benefit and Sickness Benefit customers.

6.17 We estimate that up to 3% (or 50,000) customers could have an increased tax liability. Customers would not lose any benefit as a result, as on conversion benefit levels would be protected. However, they would have to pay on average an estimated £1000 a year in income tax. These will be customers with the highest incomes, the vast majority of whom are already liable for tax and have other sources of income that take them over the £6,475 income tax threshold