ESA changes in April 2012

zippy1969

Hi.

Earlier this year (March) I helped my friend make a claim for contributory ESA and DLA, both of which were successful (ESA after appeal). She gets high rate care/low rate mobility components of DLA and also gets the enhanced and severe disability premiums of ESA.

Someone has told her that her ESA will stop in April 2012 because she is in the 'work related activity group.' Apparently this will be the case for everyone who has been claiming ESA for a year or more?

I've been looking into this and it seems this is true, but she will still get ESA pending the outcome of a 'means test.' She doesn't work, has no income/savings at all and lives alone. I found this information here:

http://www.fibromyalgia-associationuk.org/dmdocuments/ChangesToContribBasedESA.pdf

"If you're in the Work-related Activity Group and you're getting contributory ESA but
not income-related ESA, you may become eligible for income-related ESA when your
contributory ESA stops. You will not need to make a new claim for this, but you may
need to supply further information to the Department for Work and Pensions"

She is anxious that her money will stop and even though she would surely receive something under the 'means tested' system, she's scared her money will decrease. Also, will she still get the enhanced and severe disability premiums of ESA?

I'm sure someone will know the answer to this.

Many thanks in advance for your help.

Muttleythefrog

Sorry not quite fully awake... but if she has no savings or the like and no income other than the likes of DLA then I can't imagine she would become worse off.... because IR appears only to carry potential financially beneficial implications over Contrib based ESA. Hopefully someone more switched on will technically confirm that. Hopefully that transition to IR ESA from Contrib will be smooth... I would expect the 'means test' to be pretty straightforward... of the form of declaring current means.. i.e. savings.. investments.. second homes etc.

The premiums should continue. She might find she becomes eligible for things otherwise she might not have been. Might be worth looking at website of her energy supplier to see if they do discount for a person on IR ESA getting a disability premium (good chance they do!) If she gets prescriptions or dental work/appointments she may benefit... shouldn't need to pay.

Hopefully someone will correct any technical errors above. But unless she has some 'means' unknown to you then I can't imagine she would be worse off after switching Contrib to IR. In fact I wonder if it even possible she is currently regarded as having underlying entitlement to IR ESA by the DWP.

rogerblack

Muttley is right - income-based ESA is better than contributory, if you have no savings or income, as it entitles you to more free services.
If you have no income other than DLA, and no savings of over 6K, then you will get exactly the same amount as contributory ESA.

zippy1969

Thanks...she's very relieved about this. Will she continue to get both disability premiums also?

Out of interest...what 'free' services would she be entitled to on income based ESA that she wouldn't get with contributory based? She gets free prescriptions etc via a HC2.

Really appreciative of your help.

bigbill

She already gets Income related ESA on top of her Contributory based ESA so there will be no chnage for her from April.

[Deleted User]

people shouldnt forget transitional relief either,which should be applied until 2020