ESA(IR) treats all income as income, so any PHI payments would be deducted £ for £ and if this results in in the deductions exceeding the payments then entitlement to ESA is lost.
Gordon
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Did you ever find out any futher details on this matter?? I am getting this PHI off work and still getting payslips and paying NI contributions. My IB stops on the 18th December Ive just been told. Surely if your still paying NI you should be able to claim ESA.
As I understand it, you can still claim ESA, but you might not actually get any money paid. Sounds stupid, I know, but this is the same sort of situation as those who have passed the medical descriptors for ESA but are no longer getting any money due to the 365 day rule.
Nothing on this board constitutes legal advice - always consult a professional about specific problems