New-style ESA claim - told they will only pay NI credits and nothing else

Frogling

Hi All,

I posted a while ago about my SSP coming to an end, and which ESA I should apply for. Whilst I have only been working part-time for the last few years, according to a lady at CAB, I had earned enough for my NI credits to count for New-Style ESA (currently receiving tax credits, and wanted to stay on them rather than move to UC if possible).

I had an appt at the local job centre on 5th June, and took my SSP1 form, fit notes, etc to register. I rang the helpline today as I hadn't heard anything back, and when I finally got to speak to somebody, she told me that my claim was processed yesterday, but that I won't be receiving any payments as I didn't earn enough for my NI Credits to count. She went on to say that the only thing they will do is continue paying NI credits on my behalf.

Aside from the panic that came with being told that, I'm confused, as she couldn't explain it to me in any more detail, because she didn't seem to know herself what the minimum requirements are.

I earned £7,001 in the last tax year, and for 2017-2018 I earned £5,822.

Does anybody have any knowledge or advice regarding this, or will I now have to apply for Universal Credit? If I do have to go on UC, will they backdate it to 15th June when my SSP ran out, based on the fact that I had applied for ESA before that point in time?

I hope my post makes sense, I'm panicking a little at the moment. I don't know whether it helps to know that we have 3 children - 17, 15 and 5. I have Fibromyalgia, ME and a couple of other medical problems and am quite restricted in what I can do at the moment, so my husband looks after me, the children and the household. He currently works 25 hours a week. I have applied for PIP, and am hoping I will be successful, then we could afford a carer and my husband can increase his work hours again.

poppy12345

The years that count are March 2016 to April 2018. Seems like it’s 2016 that you need to be looking at.

calcotti

If you apply for UC they will not backdate it.

To qualify for new style ESA you will need to have been earning at least £112/week for 50 weeks in the tax year 2016-2017 and £113/week for 50 weeks in the tax year 2017-2018.

If your gross earnings in 2017/18 were £5822 over £52 weeks they appear to be too low to qualify. I am fairly sure the NI credit threshold is applied on a weekly basis, not an annual basis.

You can check your NI record https://www.gov.uk/check-national-insurance-record. I note that in your previous thread you said that you had checked it and that it showed a complete record for the last few years. If you are sure of this you should go back to ESA and ask them to reconsider the decision and give them a printout of your record.

I suggest you use a benefits calculator to check your UC entitlement and compare it with your existing tax credits award.

calcotti

It has just occurred to me that as you have 3 children (going from your previous thread) you may be receiving child benefit for a child under 12 in which case your NI record will be complete because you will be getting NI credits through the child benefit. However in order to qualify for new style ESA you must have met the earnings threshold mentioned in my previous post for at least 26 weeks in one of the two tax years being considered.

Frogling

calcotti wrote: »

It has just occurred to me that as you have 3 children (going from your previous thread) you may be receiving child benefit for a child under 12 in which case your NI record will be complete because you will be getting NI credits through the child benefit. However in order to qualify for new style ESA you must have met the earnings threshold mentioned in my previous post for at least 26 weeks in one of the two tax years being considered.

Thanks for the information Calcotti, it is much appreciated.

My children are 17, 15 and 5 years old. I found my P60 for 2016-2017, which shows my earnings as £6,401. I think I've shredded my payslips, but I believe my salary was £8.46 per hour at the time, with £1 extra per hour for any weekends worked.

My NI records state the following for both 2016-2017, and 2017-2018 (it's all Greek to me!):
You have contributions from
National Insurance credits: 104 weeks
These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

I'm hoping that the letter the DWP are sending out regarding my claim will explain in more detail than the lady on the phone could today, so that I can make better sense of it.

calcotti

It may be that you only have NI credits awarded because you receive child benefit. This is not enough to qualify for new style ESA.

The NI credits you get for child benefit are Class 3 credits. The class 3 credits build up your entitlement to state pension but nothing else. To count towards ESA you need to have Class 1 or 2 credits or contributions.

Without knowing weekly or monthly earnings figures it’s difficulty to establish whether you should have been treated as having paid NI (Class 1) contributions or not. £6400 spread evenly over a full year looks high enough (£123/week), £5,822 looks too low (£112 as against £113 required). You may want to speak direct to a HMRC about your NI record. DWP will rely on the NI record provided by HMRC to make their decision.