Query over whether I cancel my ESA now doing permitted work.

quickstepqueen

Hello
I was just wondering if anyone else had been in a similar situation to me and could give me their opinion please.

I've been on ESA for over 1yr now (WRAG group.) As I now live with my partner I only get my NI contributions paid, I don't get any money.

I've never not worked so even though I have ill health I've constantly been looking for work. (Even though my work programme advisor advised me against it.) I'm not used to not earning my own money.

All the jobs I've looked at are just not workable. (I guess I'm kinda in denial about my health!) But I wanted to be useful to someone but only at times when I feel well enough to cope with it. Enter my partner and his business.

He's a one man band and doesn't like the paperwork side of things. So, after careful consideration, he suggested I work for his company as an admin lady. It has all been agreed with my work advisor, DWP have been informed and they are sending me a permitted work form. Our accountant is going to sort the PAYE scheme out for me. My hours will definitely be well below 16hrs a week and definitely under £120 a week.

However, and this is my question really....should I come off ESA altogether? I absolutely hate being on benefits and that in itself is a stress I could do without. But I was wondering if there is any benefit to me staying with the DWP? Even though I only get NI contributions paid would it open doors to other benefits/grants.

Thankyou for taking the time to read my post. I hope that this makes sense. My head is just full of facts and figures and I can't seem to see the wood for the trees. If anyone has been in a similar situation I would really appreciate hearing your personal story.

With many thanks in advance
qsq x

epitome

If below the PW limits then, I would stay on ESA N.I. Credits... for the reasons that are about to become clear in the next few posts between you and me... I wil reply tomorrow night.

Please tell me.

Did you qualify for ESA Contributory?
What was the start date of your ESA claim?
What was the date they paid you up to and including? (not the day it landed in your account)

When did you last work?
Were you employed or self employed?
If employed, roughly what was your salary before work stopped?

TELLIT01

Even without more input from epitome, the answer is to keep the ESA claim open for NI Credits towards State Pension.

quickstepqueen

Thankyou Epitome and TELLIT01.

I really appreciate you replying to me. To answer your questions Epitome:

I was on contribution based ESA from August 30 2016 for a full year. I moved in with my partner 5th June 2017 so continued to received that contribution based ESA until 29th Aug 2017. DWP said that (as I had notified them when I moved in with my partner and disclosed joint income) I was not entitled to income-related ESA. They would only pay NI contributions from 29 Aug 2017.

I last worked 29/8/16 and was employed. My income was approx. £12000 pa.

According to a gov.uk site it states that:
"If you earn between £113 and £157 a week, your contributions are treated as having been paid to protect your National Insurance record."
So, if I was paid, for example, £115 per week, I wouldn't lose my NI for that year? I obviously don't want it to affect my future pension. (That's if there'll ever be one for me lol). If the ONLY benefit to being on ESA now is for NI contributions, I think I'd sooner cancel my entitlement (if I'm paid an amount between £113-157.) I hate being on benefits. They always make me feel so guilty, even though it's not my fault I have health issues. I'm just used to being so independent, and hate being "judged".
Thankyou again for your replies. Very much appreciated.

epitome

quickstepqueen wrote: »

I was on contribution based ESA from August 30 2016 for a full year. I moved in with my partner 5th June 2017 so continued to received that contribution based ESA until 29th Aug 2017.

DWP said that (as I had notified them when I moved in with my partner and disclosed joint income) I was not entitled to income-related ESA. They would only pay NI contributions from 29 Aug 2017.

I last worked 29/8/16 and was employed. My income was approx. £12000 pa.

According to a gov.uk site it states that:
"If you earn between £113 and £157 a week, your contributions are treated as having been paid to protect your National Insurance record."
So, if I was paid, for example, £115 per week, I wouldn't lose my NI for that year?

I obviously don't want it to affect my future pension. (That's if there'll ever be one for me lol). If the ONLY benefit to being on ESA now is for NI contributions, I think I'd sooner cancel my entitlement (if I'm paid an amount between £113-157.) I hate being on benefits. They always make me feel so guilty, even though it's not my fault I have health issues. I'm just used to being so independent, and hate being "judged".
Thankyou again for your replies. Very much appreciated.

Ok thank you.

ESA paid up to August 29th 2017 12 weeks after that date will be 21/11/17.

If you ask ESA to "Reassess your Relevant Income Tax Years from 22/11/2017" (you ask them on 22/11/17 by phoning them, and requesting a handover is sent for this to be done.)
You will get another 1 year of ESA Conts payments from 22/11/2017

As long as you earn no more than £120 a week (this is net earnings after tax) and as long as you do not work 16 hours a week You will be allowed to receive ESA WRAG and your earnings will not affect your ESA award.

When you phone to ask this to be done, ignore them if they say "you can't do that" or "I don't know if that is possible" ignore them if they say "You will need to send it in writing, or I can't send a handover for that"

You just insist, that they send a handover saying
"Claimant requests new RITY (Relevant Income Tax Years)
to be looked at for ESA Contributory Award
from 22/11/2017"

If you want confirmation that they do send a handover as you have requested, just ask for a "call back handover" to be sent so the processing office will phone you to confirm your request has been recieved and will be actioned. (I would ask for a call back).

When it is all sorted out, I'm not sure if they will treat the 2nd award as a new claim or not.

New claims now do not get the WRAG component

So your new 1 year of ESA will either be
£73.10 a week
£102.15 a week

If you get £73.10 you could ask me to find out if that is correct.......I might find out anyway between now and then.

Alice_Holt

In order to maintain NI contributions towards your state pension, there are a few options.
But firstly I would start by getting a State Pension Forecast to see where you are at currently -
https://www.gov.uk/check-state-pension

Option 1 ) Stay on ESA and get NI contributions. But, you are still subject to the WCA and WR activities - so I can understand your concerns.

2) Pay voluntary NI contributions - some c.£740 pa. This gets you c.£4.50pw SP - c.£230 for each year of retirement (index linked). So, is something of a bargain if you can afford it - payback after 3 and a bit years into retirement.

3) Your post @ 4 is correct. If you earn the equivalent of (at least) the Lower Earnings Level (£113 pw or c.£5900 pa) then you will get the benefits of paying NI (see - https://uk.practicallaw.thomsonreuters.com/2-205-6579?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1). Your accountant should be able to give you more info on this.

Best wishes.

quickstepqueen

I've never heard of this "handover" or "RITY", but I will definitely look into these epitome. Thankyou. I don't want to be a burden on our benefits system, but I don't want to get into debt either.
And thankyou Alice for telling me that I had read that gov.uk info correctly. I'm just checking the link to the state pension forecast you gave me.