The DWP has made changes to the rules for people who claim ESA at the same time as Universal Credit. Many people need more money. The Universal Credit boost is ending after 18 months. The Chancellor’s budget promised that people on Universal Credit and working would get an extra £1,000 a year. He said they would do this by lowering the taper rate and raising the work allowance.
But, this will not help 6 million people who are on Universal Credit. People who are on Universal Credit can get New Style Employment and Support Allowance (ESA) if they are sick, have a health condition, or disability that limits their ability to work.
This month, the DWP has released new rules for getting New Style ESA. If you get Universal Credit and New Style ESA, the money from Universal Credit is reduced by the same amount as New Style ESA. This means you don’t have any extra money. The only way this will work out is if you have National Insurance or pension income to cover it.
We have written these situations below.
What is New Style ESA?
If you have a disability or rather health condition, you might qualify for ESA. It is an allowance that will help you if you cannot work. People can apply if they are employed, self-employed or unemployed. Your savings will not affect how much New Style ESA you are paid. If your partner works, its does not affect your claim.
When you get a pension, it might affect the amount of money you get. ESAs are for people who cannot take care of themselves. You can work less than sixteen hours a week and earn less than £143 without notifying the DWP.
You need to have made enough (NIC) National Insurance contributions. This is usually two or three years of work. Credits also count for this.
How much is New Style ESA?
The insurance company will tell you the assessment rate. This is usually for 13 weeks. During this period, if you are under 25 years old, you get up to £59.20 a week or $74.70 US dollars US dollar per week. If you qualify for ESA, you will be put in one of two groups:
If you can get back to work in the future, you will be put into the work-related activity group and get-up to £74.70 a week. If you can’t work, you go into a support group and get up to $114.10 a week. People who are in this group also get the enhanced disability premium and might also qualify for the severe disability premium.
If u are in this group, then you may also qualify for the enhanced disability premium and the severe disability premium. Every two weeks, ESA gets paid into your account.
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DWP rules for getting Universal Credit and Employment Support Allowance. You can receive both Universal Credit and the New Style ESA at the same time. If you get ESA, your Universal Credit payment can be reduced. Therefore, while you will get both things, you won’t receive any more than you would have otherwise. But, even though you don’t get extra money from Universal Credit, you will be paid more often.
You will get paid every 2 weeks on this job, but with Universal Credit, you only get the money once a month. You also get different types of insurance.
New Style ESA gives you credits that count towards your State Pension. This may help you qualify for other benefits, like contribution-based Jobseeker’s Allowance.
Universal Credit earns you Class 3 NI Credits. They only count towards your State Pension and nothing else. The DWP has created a list of different circumstances under which you can get help.
If you are too! sick to work and have paid and/or been credited with NI contributions in the last 2 to three years, you can get a New Style ESA. If you have a lot of savings, it doesn’t matter.
But you will only be able to receive Universal Credit if you have less than £16,000 in savings. And the amount of UC you get is reduced by the amount of ESA that you get. If you have not been paying National Insurance contributions in the last two to three years, then you won’t qualify for ESA. But you can still get Universal Credit if your savings are less than £16,000 with your partner.
If you get a pension from your old job, it may affect your new ESA. If it is worth more than £85 per week and is private money, then it will count as income.