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Transitional Aggrement Invalidity-Incapacity-ESA

Been on the phone to various GOV benefit departments today

Seems ..unless I've been fed wrong info

That the "Transitional agreement" has been scrapped with the move to ESA

The agreement happened in 1995....when people on invalidity benefit were transferred to incapacity benefit

The agreement said, those people didn't have to pay tax on the benefits

The agreement has survived until this ESA came in.

Now, anyone over the tax threshold, (
£7,475) because they are receiving a works pension ..or their wife OR husband is working will have to pay tax on their ESA...If you are on contribution based employment and support allowance

Those people will be down in most cases over £25 a week !!!

anyone know any more about this .



all the best.marki






«1

Comments

  • dafyguy
    dafyguy Posts: 57 Forumite
    Been on the phone to various GOV benefit departments today

    Seems ..unless I've been fed wrong info

    That the "Transitional agreement" has been scrapped with the move to ESA

    The agreement happened in 1995....when people on invalidity benefit were transferred to incapacity benefit

    The agreement said, those people didn't have to pay tax on the benefits

    The agreement has survived until this ESA came in.

    Now, anyone over the tax threshold, (
    £7,475) because they are receiving a works pension ..or their wife OR husband is working will have to pay tax on their ESA...If you are on contribution based employment and support allowance

    Those people will be down in most cases over £25 a week !!!

    anyone know any more about this .



    all the best.marki







    Maybe because ESA is a new benefit with new rules, and the intention is to bring everybody into line.
  • Torry_Quine
    Torry_Quine Posts: 18,887 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper


    The agreement has survived until this ESA came in.

    Now, anyone over the tax threshold, (
    £7,475) because they are receiving a works pension ..or their wife OR husband is working will have to pay tax on their ESA...If you are on contribution based employment and support allowance

    You are individually liable for tax so it makes no difference whether so it makes no difference if your spouse works or not.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • That's not the only thing

    12 months from now

    all contribution based employment and support allowance

    will be means tested ..

    so if wife or husband work ..or you have pension ..or savings above 16,000

    you may loose all benefits .

    all the best.markj
  • Torry_Quine
    Torry_Quine Posts: 18,887 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    That's not the only thing

    12 months from now

    all contribution based employment and support allowance

    will be means tested ..

    so if wife or husband work ..or you have pension ..or savings above 16,000

    you may loose all benefits .

    all the best.markj

    Only in the WRAG, if in the support group there is no time limit.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • If you read these forums

    the people in the support group consist of terminally ill people and a few exceptions ..

    others ......people with MS, Parkinsons The blind, apputies from army navy , air force ..all sorts of very bad conditions are in the WRAG

    a lot people will be affected by these new rules.

    all the best.markj
  • Cpt.Scarlet
    Cpt.Scarlet Posts: 1,102 Forumite
    Tenth Anniversary
    That's not the only thing

    12 months from now

    all contribution based employment and support allowance

    will be means tested ..

    so if wife or husband work ..or you have pension ..or savings above 16,000

    you may loose all benefits .

    all the best.markj
    Not quite.

    The Welfare Reform Bill, which has not been passed into law yet, will limit the receipt of contribution based ESA to one year for members of the WRAG but not the Support group, with effect from April 2012. After that time, those affect will be eligible to income related ESA, subject to a means test of income and assets.
  • Not quite.

    The Welfare Reform Bill, which has not been passed into law yet, will limit the receipt of contribution based ESA to one year for members of the WRAG but not the Support group, with effect from April 2012. After that time, those affect will be eligible to income related ESA, subject to a means test of income and assets.

    well ,will it or wont it be passed .. ?

    all I'm saying is people should plan ahead now ..just in case

    don't dismiss anything

    and have a look at this ..if you can get it to work

    http://www.google.co.uk/#sclient=psy&hl=en&biw=800&bih=417&source=hp&q=SN05853.pdf&pbx=1&oq=SN05853.pdf&aq=f&aqi=&aql=&gs_sm=e&gs_upl=59175l63231l0l64003l5l5l0l0l0l0l218l891l0.2.3l5l0&bav=on.2,or.r_gc.r_pw.&fp=f49d74b5d2df759d

    all the best.markj
  • dafyguy
    dafyguy Posts: 57 Forumite
    If you read these forums

    the people in the support group consist of terminally ill people and a few exceptions ..

    others ......people with MS, Parkinsons The blind, apputies from army navy , air force ..all sorts of very bad conditions are in the WRAG

    a lot people will be affected by these new rules.

    all the best.markj

    Am I not right in thinking that those in the WRAG will be re-assessed to see if they have improved or maybe got worse and should be in the Support Group?
  • dafyguy
    dafyguy Posts: 57 Forumite
    Not quite.

    The Welfare Reform Bill, which has not been passed into law yet, will limit the receipt of contribution based ESA to one year for members of the WRAG but not the Support group, with effect from April 2012. After that time, those affect will be eligible to income related ESA, subject to a means test of income and assets.

    To put it bluntly.

    Those that would not qualify for a means tested benefit, have a maximum of 12 months in the WRAG to get themselves fit and either back to work or find a job/sign on for JSA simple.

    The days of those on contribution based sick benefits getting paid year after year after year, and have been found to be not quite fit yet are coming to an end.

    The WRAG is a 'temporary' benefit designed to help people who are sick, but are expected to be fit for work in the short term (12 months).
  • Cpt.Scarlet
    Cpt.Scarlet Posts: 1,102 Forumite
    Tenth Anniversary
    dafyguy wrote: »
    Am I not right in thinking that those in the WRAG will be re-assessed to see if they have improved or maybe got worse and should be in the Support Group?
    People seem to be re-assessesed every 3-12 months, typically more often in the WRAG than the SG, but not always.
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