If I make a change to ESA Income related, will it trigger a UC claim instead

Andreaspage

Hello,

I receive contribution based ESA in the support group and enhanced disability premium of income related ESA. I also receive disability living allowance middle rate care and lower rate mobility.

I have been approved to take my deferred occupational pension early due to my ill health, I'm 53 and haven't been able to work for 20 years due to severe M.E. I'm in a lot of debt and need to put in a lump sum towards paying it off.

The pension I've been offered is £4775 lump sum and £60 a month which works out at £13 a week.

I phoned a few helplines, a benefits helpline, pension wise and money wise, asking if I take my pension now, which I should receive in about a week, will me reporting that I now receive my pension and then being reassessed for ESA IR and housing benefit trigger a new claim for universal credit?

I'm worried as I need to be reassessed for income related ESA first, and that took 8 weeks to process last time. Then I'll need to tell housing benefit and that can take 6 weeks. My area goes live for universal credit on November 28th.

I've read almost everywhere that if you have a change to your benefits, you might be asked to apply for universal credit instead once your area is live.

If I put in both my applications for ESA and housing benefit before the 28th November, will that mean I'm already in the old system and therefore won't be asked to claim universal credit instead even if a decision isn't made for both benefits after 28th November? None of the helplines I phoned knew the answer to this question.

Should I phone ESA IR now and tell them there will be a change to hurry process up, as application form can take 2 weeks to arrive?

It wouldn't be clever to tell housing benefit until I get ESA IR decision, as I still could be entitled to a little bit or no ESA IR. Housing benefit would also stop my housing benefit payments until it had all been assessed.

I'd be grateful for advice from someone who knows the exact procedure on this.

Much appreciated.

Thank you.

poppy12345

This won't prompt a move to UC because you're already claiming the Income Related top up on your ESA. Your weekly pension will affect your ESA Income Related top £1 for £1. The lump sum is under £6,000 and won't affect any means tested benefits you claim but you should still report the lump sum you're receiving.

Andreaspage

I've been reading on the internet all night. Child poverty says that a legacy benefit ending might be a trigger, but I wasn't sure what that meant. The ESA income related might end, not just altered, so would that be classed as bringing a legacy benefit to an end?

It was this paragraph from child poverty action group that concerned me

4. Does the change in your circumstances mean that you need to make a new claim for a legacy benefit? For example, have you fallen long-term sick and need to stop claiming income-based JSA and claim income-related ESA instead? Or have you had a child and are not already getting CTC or WTC? Or have you moved to new rented accommodation and need to make a new claim for housing benefit? If yes - go to question 5. If no, because your change of circumstances just alters your current award of a legacy benefit but does not bring it to an end, or does not mean you need to make a new claim for a legacy benefit, you will only be subject to natural migration if you decide nevertheless to claim UC

Thanks for answering my question. I appreciate your help.

poppy12345

Your ESA isn't stopping, just part of the Income Related top up will be affected. This is different to what you pointed out above.

calcotti

You are not making a new claim, you have a change of circumstances which affects the amount of benefit you receive but not your entitlement to it.

Even if you lost all of your income related ESA you would still be entitled to the contribution based ESA and ESA is one benefit with two parts.

Your original post doesn’t mention Severe Disability Premium (SDP) but reads as if you live alone. If that is correct, and no one claims Carers Allowance for looking after you, you can apply to have the SDP backdated to when you first got at least middle rate Care of DLA. That could potentially result in a large arrears payment which would also help with your debts.

If you are living alone and have no other income I would expect your ESA to be £110.75/week contribution based ESA plus income based ESA of £80.70 including the SDP. If you now have a pension of £13.85 week (£60/month x 12 / 52) the income based ESA will reduce to £66.85/ week.

If you are not eligible for SDP then your income based award will reduce from £16.40 to £2.55 based on a pension of £13.85.

Unfortunately you are no better off for taking your pension now other than access to the lump sum.

It is important not to lose the income based part because if you only got contribution based ESA and DLA you would no longer be entitled to free prescriptions, dental care etc. Will the pension rise each year or is it a fixed amount which will not change?

poppy12345

calcotti wrote: »

If you are living alone and have no other income I would expect your ESA to be £110.75/week contribution based ESA plus income based ESA of £80.70 (including the SDP).

If the OP is living alone and someone claims carers allowance for looking after them then they won't be entitled to the SDP.

Andreaspage

Thank you so much for your replies. I was thinking the ESA IR was one benefit, I live with my adult son who cares for me so he receives carers allowance.

Thank you for your help. I appreciate you taking time to answer my question.

calcotti

poppy12345 wrote: »

If the OP is living alone and someone claims carers allowance for looking after them then they won't be entitled to the SDP.

Still editing post when you posted! Clumsy fingers on iPad.

Andreaspage

Hi thanks for the edit on your post. It's one lump sum and the monthly pension won't rise. We get free prescriptions in Scotland but I see your point about dentist.

I'm not sure how they'll calculate it though as my award letter for IR ESA enhanced disability doesn't show the £16.40 enhanced disability award amount. It has what I receive in contributory rate, the top up I received from going from incapacity benefit to contributory ESA ( I received ESA IR this year) and then shows a £9.00 additional amount.

I'll need to wait and see, or do you know how they'll calculate it?

Thanks

poppy12345

ESA contributions based with the Enhanced disability premium is £127.15 per week. Anything on top of that will be the the extra you receive fro transferring from IB but your award letter should state Enhanced disability premium or disability income guarantee, which is £16.40 per week.

Andreaspage

Hi, I receive £127.15 in total, but the letter doesn't say Enhanced Disability Premium. I saw an advisor on rights net write a few weeks ago saying that the award letters for contribution ESA that include new award of IR Enhanced disability premium need to be updated, as they don't mention Enhanced Disability Premium and the amount stated isn't £16.49. I've been looking for my award letter, and can't find it. If or when I do, I'll type out what it says. I think it might be that those migrated over to contributory ESA from incapacity benefit were given a top up, so when I was awarded ESA IR enhanced disability it's only £9 a week, taking the total to £127.15. I don't know if that will affect the calculation.

Thanks for all your help.