ESA and National Insurance

atlantis187

If someone hasn't worked for the past 5 years but has been claiming carers allowance and getting the national insurance credits paid can they claim for New Style Esa?

calcotti

atlantis187 wrote: »

If someone hasn't worked for the past 5 years but has been claiming carers allowance and getting the national insurance credits paid can they claim for New Style Esa?

Yes. Normally to claim New style ESA you would need to have NI contributions or credits for the two tax years 2016-2017 and 2017-2018 and in one of these years you need to have actually paid contributions equivalent to at least 26 weeks in one of these years. However if you were in receipt of Carer’s Allowance in any week in the 2017-2018 year this second contribution condition is relaxed so that you simply have to have paid 26 weeks in any one tax year of your life.

DWP sometimes overlook this rule.

sportsarb

calcotti wrote: »

DWP sometimes overlook this rule.

If they do overlook it, point them to this rule:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/579621/admu1.pdf

U1035 onwards

Relaxation of the first contribution condition
U1035 The first contribution condition is taken to be satisfied1 if
1. the claimant has paid Class 1 or 2 contributions for any one tax year before
the relevant benefit week2 and
2. the claimant has
2.1 earnings at the LEL in that tax year on which Class 1 contributions have
been paid or treated as paid which in total, and disregarding any
earnings which exceed the LEL for that year, are not less than the LEL
multiplied by 263 or
2.2 earnings factors in that tax year derived from Class 2 contributions
multiplied by 264 and
3. the claimant
3.1 was entitled to CA in the last complete tax year immediately before the
relevant benefit year in which the first day of LCW occurred5 or
3.2 had been engaged in qualifying remunerative work6 for a period of more
than 2 years immediately before the first day of LCW and was entitled
to the disability element, or the severe disability element, of WTC
throughout that period7 or
3.3 is entitled to be credited with earnings or contributions following release
from prison where a conviction is quashed8
, or would be if an
application was made, in respect of any week in any tax year preceding
the relevant benefit year9 or
3.4 is entitled to be credited with earnings equal to LEL on the grounds that
they
3.4.a. are a spouse or civil partner of a member of HMF and
3.4.b. accompanied that member of HMF on an assignment outside
the UK or treated as such by the Secretary of State10.
1 WR Act 07, Sch 1, Part 1, para 1(4)(b); ESA Regs 13, reg 9; 2 reg 9(1)(a); 3 reg 9(1)(b)(i);
4 reg 9(1)(b)(ii); 5 reg 9(2)(a); 6 reg 2(1); Tax Credit Act 02, Part 1; 7 ESA Regs 13, reg 9(2)(b);
8 SS (Credits) Regs, reg 9D; 9 ESA Regs 13, reg 9(2)(c); 10 reg 9(2)(ca); SS (Credits) Regs, reg 9E
The second contribution condition
U1036 The second contribution condition is satisfied1 if
1. in the last two complete relevant income tax years before the beginning of the
relevant benefit year the claimant has
1.1 paid or been credited with class 1 or class 2 NI contributions or
1.2 been credited with earnings and
2. the earnings factor in each of those years is not less than 50 times the LEL for
those last two complete relevant income tax years.
1 WR Act 07, Sch 1, Part 1, para 2(1)

atlantis187

Thanks for this guys

just a couple more questions:

So when claiming through NI credits rule is the person entitled to claim contributions New Style ESA or is it just Income based?

Also can new style esa and carers allowance be claimed at the same time?

calcotti

Income based ESA has been replaced by Universal Credit. If you want to claim an income based benefit UC is what you would have to claim.

If you already get Carer’s Allowance you can claim New style ESA but you cannot be paid both. ESA will be paid in preference to CA because it pays more.

If you already get CA you can claim UC but the CA will be taken into account as income. The maximum UC entitlement will be increased by a carer element.

atlantis187

So it that definitely 100% the case then New Style ESA and carers allowance CANNOT be claimed together?

The person i'm asking for wants to stear clear of Universal Credit for time being.

calcotti

P

atlantis187 wrote: »

So it that definitely 100% the case then New Style ESA and carers allowance CANNOT be claimed together?

The person i'm asking for wants to stear clear of Universal Credit for time being.

They can be claimed together but they cannot be paid together. They are known as ‘overlapping benefits’.