Permanent Health Insurance

My partner received a permanent health insurance from his old employer of around £16000 and incapacity benefit and dla middle rate. He will be transferred onto esa at some stage we presume but will his phi income be taken into account as we have been told esa is means tested.

Cheekymelky wrote:

My partner received a permanent health insurance from his old employer of around £16000 and incapacity benefit and dla middle rate. He will be transferred onto esa at some stage we presume but will his phi income be taken into account as we have been told esa is means tested.

Hi,

In certain cases PHI can be treated rather similar to receipt of an Occupational Pension. Also when the PHI was received can also have a bearing on how it may affect benefits.

In light of this, your partner really does need to obtain some face to face advice from a welfare rights agency/CAB etc in order to establish his full circumstances (which cannot be done on an open forum).

See:

Where to get advice?


Where to get help

Pete

thanks for your response he has had some advice from dial UK and has been told that although he has no capital because he has income of 16200 he will get no ESA at all even though he is being transferred onto it from old IB. We are unsure if this is true as we knew that if you had over 16,000 in capital there was no entitlement but thought that £16000 in income was different. The people he has spoken to dont seem terribly sure.

Cheekymelky wrote:

thanks for your response he has had some advice from dial UK and has been told that although he has no capital because he has income of 16200 he will get no ESA at all even though he is being transferred onto it from old IB. We are unsure if this is true as we knew that if you had over 16,000 in capital there was no entitlement but thought that £16000 in income was different. The people he has spoken to dont seem terribly sure.

Hi,

Whilst we cannot deal with specific cases, in general if one is in receipt of an occupational Pension (or PHI being treated like an Occupational Pension) then any gross weekly Pension/PHI over £85 per week (Gross)received reduces Contributory Based ESA by the rate of 50p for every one pound of ESA right down to where it maybe that no Contributory ESA can be awarded.

In the case of Income Related ESA, all awards or pension/phi are taken into account.

I hope this may explain how the system works.

Pete

please also get tax info from your taxman on this subject matter, it will help you with your case re PHI as this is covered differently depending on the wording, a solicitor may be required who understands this type of tax law which can be for/against an ESA award.