New Style ESA and Tax Credits, trigger for UC?

MrsKay

Hi,
I’ve been searching for some definitive guidance on my upcoming circumstances but can’t seem to find a clear answer.
I’m currently 4 weeks into a period of sick leave from work where I’m receiving SSP plus occupational sick pay, I work part time and claim CTC, WTC inc the disability element.
My job role is changing and I’m about to enter a consultation period for redundancy, I won’t be well enough to return so will be made redundant whilst on SSP.
I’m confident that I’ll be eligible for New Style Esa but hope to find out if this will trigger a change to UC?

Some guidance suggests that WTC may be claimed for 28 weeks whilst on SSP OR ESA but I don’t know if this still applies with a change from SSP to ESA due to redundancy?

Failing the above would it be possible to continue claiming the CTC alone and additionally claim NSESA until I’m well? I’m hoping to be back in work soon.

From what I’ve read it seems common that the standard advice is to just claim UC but even though the amount is roughly the same as CTC and NSESA I will be far worse off returning to work especially due to the WTC disability element.

To add, I don’t have any entitlement to HB, a partner or any other income.

Any help at all would be greatly appreciated, many thanks.

calcotti

MrsKay wrote: »

Hi,
I’ve been searching for some definitive guidance on my upcoming circumstances but can’t seem to find a clear answer.
I’m currently 4 weeks into a period of sick leave from work where I’m receiving SSP plus occupational sick pay, I work part time and claim CTC, WTC inc the disability element.
My job role is changing and I’m about to enter a consultation period for redundancy, I won’t be well enough to return so will be made redundant whilst on SSP.
I’m confident that I’ll be eligible for New Style Esa but hope to find out if this will trigger a change to UC?

Some guidance suggests that WTC may be claimed for 28 weeks whilst on SSP OR ESA but I don’t know if this still applies with a change from SSP to ESA due to redundancy?
You are correct that you can be treated as still in work and therefore eligible for WTC for up to 28 weeks while on SSP or ESA. The technical guidance is here https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02421. I think the 28 weeks can span both because the wording only refers to beginning to receive one of the benefits, it doesn’t appear to be a requirement to continue to receive the same benefit. You need to make sure you keep HMRC informed so that they do not pay you WTC beyond the 28 weeks otherwise there will be an overpayment.
Failing the above would it be possible to continue claiming the CTC alone and additionally claim NSESA until I’m well? I’m hoping to be back in work soon.
If/when entitlement to WTC ends you can continue to receive CTC and claiming new style ESA will not affect this. Just make sure DWP do not direct you to claim UC because a claim for UC will end your Tax Credits. If WTC do end before you find work but you are still getting CTC you can ask for WTC to be reinstated when you do find work again.

From what I’ve read it seems common that the standard advice is to just claim UC but even though the amount is roughly the same as CTC and NSESA I will be far worse off returning to work especially due to the WTC disability element.

To add, I don’t have any entitlement to HB, a partner or any other income.

Any help at all would be greatly appreciated, many thanks.

........................

calcotti

I am now having doubts about my previous response to your question. The guidance I have linked today’s “An employed person is treated as being in qualifying remunerative work for up to 28 weeks,....” This could be interpreted to mean that if you are no longer employed you cannot benefit from this provision. I don’t know if this has been tested at tribunal.

I think you must tell HMRC when your employment ends and you may then come under the provision which allows you to be treated as still in remunerative employment fora period of 4 weeks https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02466

Sorry to be unable to give a definite answer in this. Hopefully others will join in.

You may wish to note that if you receive pay in lieu of notice you are not in remunerative work for the period for which you receive that pay https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02465

MrsKay

Thank you so much for taking the time to reply. I remember a few years ago when I was unwell between jobs I contacted tc’s And they just took an updated income including the esa c amount but that was before UC.

I’d be happy to just keep my CTC claim alongside the nsesa until I return to work. When I look at detailed guidance it appears to be allowed as it is t a legacy benefit that has been replaced but then in a lot of websites there is a general ‘if you stop working due to illness claim UC’ I wouldn’t have a housing allowance as I have a mortgage a d I’d be far worse off returning to work as the disability element included in my wtc doesn’t exist in UC

Once again thank you so much for your time and help.