Contributions Based ESA

caz72 wrote:

This doesn't apply to me but interests me. If someone that has Contributions Based ESA come to an end under the 12 month rule, were to go back to work and start paying NI contributions again. How long would it be before they became entitled to Contributions Based again for another 12 months ?

Based on my understanding of the Welfare Reform Bill, you will require two years of qualifying NI credits to be eligible for ESA(CB) again, one year of which must be newer than the ones used to qualify previously.

What this means in practice, will be dependant on when a claimants ESA(CB) ends, qualifying years run Jan-Dec, their income and consequently how many credits are earned, and their NI history over the previous two years.

Gordon

The Contributory conditions for ESA are explained in their usual eloquent way in chapter 41 of the Decision Makers Guide, paragraph 41022 onwards.

www.dwp.gov.uk/docs/dmgch41.pdf

The particular paragraph of interest is 41024.2 which says

“class 1 NI contributions” and “class 2 NI contributions” are the NI contributions paid by employed earners and S/E earners respectively

So although Class 1 credits are paid while you are receipt of IB and ESA(CB), and some other benefits such as Carers Allowance, they only count towards your State Pension and not your entitlement to ESA(CB).

Hope this explains it.

Gordon