Company income protection scheme and effect on ESA - advice please!

clairet1961

Hi
I've currently been signed off sick for 9 months with severe fibromyalgia.
The company i work for has a non-contributory income protection scheme which is paying me around 50% of my salary (they deduct £4901 per annum for benefits whether you are entitled to them or not).
I put in a claim for ESA as my SSP stopped in January.
I was initially told that i couldn't claim income-based ESA as my partner works more than 24 hours a week, and also told that i was not entitled to contribution-based ESA because i had not contributed to the income protection scheme. (despite it being a non-contributory scheme)
After lengthy discussions with my employer and their income protection scheme rep, i managed to get a statement from the insurance company stating that they considered that i would be entitled to ESA as my employer is the policy holder, and suddenly the decision was changed and i am now in receipt of ESA.
I've not had a letter outlining my entitlement, but have received a payment into my bank account.

However, i was also advised by DWP that should my employment end and the income protection payments continue, i would not be entitled to ESA as the income protection scheme payments would be counted as income, and that the income protection policy would then be considered to be mine.
Following a meeting with my employers this week, and a report from occupational health stating it was likely that i would be unable to work for several more months or longer, i was informed that they are dismissing me on capability grounds. While i know that they are legally allowed to do this, i am concerned that my ESA will stop.

Has anyone had similar experiences? I could really do with some advice on this.
I've asked the insurance company for a statement to the effect that it's still not my policy whether they pay me through an employer or directly, but no joy yet.

Help!!

HB58

Contributary ESA is payable if you have paid a certain number of NI contributions in the past 2 tax years. Were you working during this time? If so, you might want to check your contribution record. Note that these NI payments are totally seperate from any insurance protection your employer might/might not pay for.

The situation with income related ESA and insurance payouts is rather complicated, it might be worth getting specialist advice from somewhere like CAB.

clairet1961

Hi and thanks for the reply.
I have been working continuously for the past 20 tax years so sure i have paid enough contributions.
Would you happen to know whether the info the DWP gave me about any ESA stopping when my employment ends is correct or not? I can't see the difference, it isn't my policy now, and it still won't be my policy when my job ends so i can't see how ESA can be stopped ??

HB58

As I said, this is not an easy situation as this kind of payment can sometimes have an affect on even contributary ESA. I believe that you really need expert advice.

Pooky

My DH is in the same position and we've been told about 20 different things as to whether Contributions based ESA will continue or not.

I know the income from the policy will be classed as a "pension" once employment ends but in our case it's to high for income based benefits. However, like you, we cannot see why contributions based would end.

The ESA departments seem clueless as to what to do with these policies. I hope you get some answers soon and shall follow the thread with interest.

clairet1961

Quick update...

My employment has now ended, and i have sent a letter informing the DWP re the ESA claim. I included a quote from my ex-employer's insurance company who also feel that nothing has changed except that they will now pay me direct rather than through my ex-employer.
I've yet to hear back from DWP but would be due to receive a payment of ESA on 18th June, so i guess i will find out their decision then by checking my bank!:mad:

Pooky - any news your end yet?

dave030445

clairet1961 wrote: »

Quick update...

My employment has now ended, and i have sent a letter informing the DWP re the ESA claim. I included a quote from my ex-employer's insurance company who also feel that nothing has changed except that they will now pay me direct rather than through my ex-employer.
I've yet to hear back from DWP but would be due to receive a payment of ESA on 18th June, so i guess i will find out their decision then by checking my bank!:mad:

Pooky - any news your end yet?

Hi Iam in the same sort of boat but I was on income based ESA before thisPHI insurance paid out I am wondering if I can go on to CB ESA Ive been to the job center and your right no one knows what to do Iam still on ESA but all payments have stopped untill they work out what to do. Council tax benefit was the same the lady said I don't know what to do. To be fair the CAB didn't know either. Are you still having to pay tax on the insurance now that it is being paid direct to you.

HB58

This sort of payment might be classed as a 'private pension'. In this case, the first £85 is discounted for contributary ESA, then 50p benefit is lost for every £1 received above this.

sparky260500

dave030445 wrote: »

Hi Iam in the same sort of boat but I was on income based ESA before thisPHI insurance paid out I am wondering if I can go on to CB ESA Ive been to the job center and your right no one knows what to do Iam still on ESA but all payments have stopped untill they work out what to do. Council tax benefit was the same the lady said I don't know what to do. To be fair the CAB didn't know either. Are you still having to pay tax on the insurance now that it is being paid direct to you.

Hi when the insurance pays you direct Iam pretty sure you no longer pay tax on the money.

Pooky

claireT - no news this end yet, DH is due to have the "bye bye" meeting in the next week or so and we've asked them to confirm what will happen.

Will check back and see if you've had any more news....fingers crossed it gets sorted easily for you.

clairet1961

Hi all

I have now had the date for my medical assessment at home from a dr...it's 26th June so very soon.

In the letter it says that i need to tell the dr -
how much help i normally need during the day
how much help i normally need during the night
what problems i have getting around
if they have visited me on a day when my illness/disability is better or worse than usual

As i have fibromyalgia, each day/hour is different and my abilities vary so much! I have been reading about how Atos ignore what people say and lie about it, so i am getting really stressed about it, which needless to say, does not help my condition!

Anyone got any pointers for me??