ESA (IR) or Working tax credit

flump123

I'm currently claiming ESA, i was on contribution based till april last year (so am still getting my NI paid) when the changes came into affect but was moved to Income related after that.

I have a house with a small mortgage and two children under five with my partner who has just found a job for 20 hours a week term time only. We seem to be in a unique position of being able to stay on ESA income related at a reduced sum or moving over to working tax credit as although she doesn't meet the 24 hour rule, we meet the 16 hour rule due to me getting contributionary ESA NI payments.

They both work out to be the same sum at the end of the month so am unsure whether to continue with the income related esa claim or move over to working tax credit?

I know we are entitled to free prescriptions and school meals if we stay on esa, would we still get those if we moved to working tax credits and is there anything else i'm missing?

Thanks

Icequeen99

It is possible to actually claim both in rare circumstances, but it ends up in a very confusing situation whereby you claim WTC, of which you get the maximum because of the IRESA and then the WTC is taken into account for IRESA.

At that point two things happen - either you still get some IRESA and all is fine OR (as normally happens) the WTC means your income is too high for IRESA so you lose it. But then when it is lost, you lose the passport to maximum tax credits. Basically you end up in a circle.

I would go and get some advice and look at 3 situations, your income with WTC only, your income with IRESA only and what the situation would be if you claimed both. If the latter works out as not putting you in that circle I would suggest you take that option.

If it does, then you will need to balance up the pros and cons of each of the other two options.

You won't automatically get free prescriptions with WTC, but you can apply to the NHS low income scheme.

IQ

flump123

Hi, thanks for the reply I have had a look on the turn to us benefits caculator. We would be entitled to the same amount of child tax credit and council tax benefit either way and staying on esa will give an entitlement to £69 a week and moving to working tax credit will give us £71 a week. The differrence is made up with the £3.10 a week milk vouchers that we get because of esa.

Going for tax credits will stop the ir esa but I will still get contribution based esa although no money as im in the wra group and my entitlement has finished.

Would we be able to get free schools meals with working tax credit also?

benefitbaby

flump123 wrote: »

Would we be able to get free schools meals with working tax credit also?

I don't think so, see
https://www.gov.uk/apply-free-school-meals