Do we have a choice if ESA is income related or Contributions based?

DEBTMONKEY1A

Hello,

Just wondered if when putting in a claim for ESA if you could choose to have it either income based or contributions based. My reason for asking is that I've been advised that you get more housing/council tax benefit if the ESA is income based.

Doeas anyone have any idea?

Tehya

Hi,

I'm not sure you can chose which ESA you receive as you wouldn't get any income based ESA at all if you have more money coming into the home than the current level of ESA for your circumstances.

You can still get full rent and council tax benefits on contribution based ESA as long as the household income is low enough, this would need to be around the same amount as income based ESA.

The difference between the two, when deciding entitlement to other benefits, is that the contributions based ESA will be paid even if other income is coming in to the household i.e. a partner's wage whereas the income based claimant will have no more than the applicable amount to live on for their circumstances so that's why they will get the full amount.

Both groups have to claim HB and CTB in the same way as they're not automatically awarded just because a person is claiming income based ESA.

Good luck,

Tehya

DEBTMONKEY1A

Thanks Theya! The reason we'd prefer income based is that it does give a disability premium in Housing Benefit/CTB, my partner is receiving DLA & I'm not working at the mo...I just get carers allowence. Her contract of work finishes soon & we wanted to get everything ready in advance for the Housing Benefit/Council tax Benefit. Luckily there is a claim ongoing at the mo so we won't have to wait the usual 6-8 weeks (!).

Tehya

Hi again,

Is it your wife who will be claiming ESA? If it is and as you're claiming CA you'll get a top up of income based ESA anyway because you're a couple.

My hubby is claiming ESA and I claim CA for looking after him we are awarded as a couple so get both income based and contribution based ESA. This means we get full HB and CT benefits paid as well as other pass-ported benefits like the NHS exemption card.

If you want any other information about how our benefit works just ask.

Tehya

calleyw

You don't get to choose.

It depends if the person claiming has worked and paid enough NI in the tax years 2007-2008 and 2008-2009.

Even if you don't get income based as has already been mentioned if you have a low income then you can claim means tested benefits such as help with council Tax.

Yours

Calley

DEBTMONKEY1A

Thanks both of you-that's great! yes it will be my g/f (we live together) who will be claiming for ESA. This time last year I was working but off on sick-pay...this year I am not working & only get carers allowence. So does that mean we make a joint claim for ESA? Sorry....a bit confused...(!)

Tehya

Hi again,

When your partner puts in her claim for ESA they will assess it on both her own (NI contributions) and the household income. As you don't work you'll be assessed as a couple. Because you are already receiving Carer's Allowance some of that amount will be taken from her ESA (although she'll get £30ish back in a Carer Premium) this is because of the overlapping benefit rules.

For the first 13 weeks of an ESA claim they pay what is called an assessment rate, this is made up of a basic rate of ESA and (like us) extra money for a partner. After having a medical the amount of ESA will go up, the actual figure depends on which group the claimant is placed in. There are two groups: Work Activity Group and the Support Group. The Support Group is for the most severely ill or disabled claimants (my hubby is in this group) and so this group receives a higher amount.

The medical should be done around week 13 but doesn't seem to be always done on time. If the medical is done late then any money owed to you, from week 14 onwards is backdated.

Hope this helps but don't be afraid to ask again especially if I've not been clear enough. My head is a fuzzy today.

Tehya

PS: I did want to mention that savings or any other income can/do have an affect on income based benefits. With the circumstances you've given and as long as there's no other income there doesn't seem to be any reason why you would not be awarded full HB and CTB with a successful ESA application.

Mistyang

thanks Tehya that information has helped me immensley too, I have been on ESA income related now for 5 weeks.

DEBTMONKEY1A

Hi! Thanks SO MUCH for replying....we're looking at all options but on further investigation it seems that Income Support (as a couple) may be the way to go....my partner is still recovering & we're not 100% sure Doc will give a sick note through until September when her contract starts again. I absolutely DO NOT want her to have to face the stress of going to sign on every 2 weeks (her psychosis was caused by extreme stress) so Income Support would seem the best way to go. I'd love to be working but still want to make sure my G/F is looked after...if I'm honest I'm pretty bored at the moment! She's under the care of the early intervention in psychosis team until at least Jan/Feb next year so the professionals feel she still has a way to go.

Her employer has been GREAT-completely supportive & extra care/supervision. If she couldn't have gone back to work (& had some sort of normal life) I fear her illness would have been worse or been set back a long time.

Thanks for all the help-will update the thread soon with whats occured!