"new style" ESA and UC inheritance

joshgiova

WE currently have a joint UC claim (since June 2019) with LCWRA and also in receipt of carers allowance. I am expecting to receive an inheritance later this year which will mean we no longer qualify for means tested benefits.

I have read that I may be eligible to claim "new style" ESA as I have received NICs from my carers allowance claim for the past 2 years and have also paid NICs from employment in the past. Am I right in this? If I am would I be able to claim new style ESA now. I am aware that this reduces UC £1 for £1 but it means I would be prepared for this upcoming change of circumstances.

pmlindyloo

joshgiova said:

WE currently have a joint UC claim (since June 2019) with LCWRA and also in receipt of carers allowance. I am expecting to receive an inheritance later this year which will mean we no longer qualify for means tested benefits.

I have read that I may be eligible to claim "new style" ESA as I have received NICs from my carers allowance claim for the past 2 years and have also paid NICs from employment in the past. Am I right in this? If I am would I be able to claim new style ESA now. I am aware that this reduces UC £1 for £1 but it means I would be prepared for this upcoming change of circumstances.

You are correct about claiming CA may mean that you are eligible for a contribution based benefit.
However, contribution based benefits and CA are, what are called, overlapping benefits.  This means that you cannot claim both - the higher amount is paid.
Did you mean new style ESA or JSA?  You cannot be claiming the carer's element of UC if you have been awarded LCWRA so are you just claiming CA?
It would help if you could breakdown your UC award showing who has the LCWRA - you or your partner? Or do you both and only one has been awarded? Basically, do you both have disabilities? 

joshgiova

hi, we both have LCWRA, so I presume we get the LCWRA for my wife and I get the carers element even though we both have LCWRA as you can only have one of each?

I am talking about claiming new style esa as I know that at some point this year our UC claim will close due to the Inheritance I will be receiving in excess of 16K. It means that I would have that underlying entitlement to new style ESA so that when the UC claim closes I still receive an extra amount which on current rates would be £113.55 total a week as the ESA would top the CA by £46.30.

[Deleted User]

 If you are getting in excess of £16k why the need to worry about £113 

pmlindyloo

joshgiova said:

hi, we both have LCWRA, so I presume we get the LCWRA for my wife and I get the carers element even though we both have LCWRA as you can only have one of each?

I am talking about claiming new style esa as I know that at some point this year our UC claim will close due to the Inheritance I will be receiving in excess of 16K. It means that I would have that underlying entitlement to new style ESA so that when the UC claim closes I still receive an extra amount which on current rates would be £113.55 total a week as the ESA would top the CA by £46.30.

Thanks for the clarification.
Yes, you can only have one LCWRA in payment and anyone with LCWRA cannot claim CA.
So, in theory, you can put in a claim for new style ESA by writing in your UC journal and asking for an application to be made.
I am sorry that I do not know how this would work in practice as most people claim new style ESA along side their UC claim at the beginning.
I am presuming that you both had a Work Capability Assessment and both were awarded LCWRA so would expect that you would not have to go for another WCA to be awarded new style ESA and be put in the support group.  However, I am not completely sure on that.  Hopefully some one else will confirm.
Are you both receiving DLA/PIP?

joshgiova

my wife receives PIP, I applied a couple of years ago but didn’t get it after assessment. I probably should of not given up so easily so may try again.

joshgiova

_shel said:

 If you are getting in excess of £16k why the need to worry about £113 

I appreciate that, however as we are both unable to work, it would make more sense to get whatever we are still entitled to, to reduce the burn rate on the inherited savings and how long it takes before we have to go back on UC.

[Deleted User]

 Fair enough, it wouldn't last a huge amount of time anyway. Might seem a lot but when you factor in all your monthly costs and things you might want to immediately replace or renew. 

joshgiova

_shel said:

 Fair enough, it wouldn't last a huge amount of time anyway. Might seem a lot but when you factor in all your monthly costs and things you might want to immediately replace or renew. 

Agreed.

calcotti

pmlindyloo said: Yes, you can only have one LCWRA in payment and anyone with LCWRA cannot claim CA.

I don't think that is correct. Someone cannot be paid LCWRA element of UC and carer element of Uc bit I don't think there is anything that stops someone with LCWRA claiming CA.

joshgiova said: I have read that I may be eligible to claim "new style" ESA as I have received NICs from my carers allowance claim for the past 2 years and have also paid NICs from employment in the past. Am I right in this?

That is correct (although DWP sometimes get this wrong). The normal rule is that if you applied for new style ESA now the claim would be assessed on your NI contributions for 2017-2018 and 2018-2019 and on of the tests is that you need to have actually paid NI for the equivalent of at least 26 weeks in one of these two years. You have not done this but there is a relaxation of the rules for people who claimed Carers Allowance in the preceding tax year prior to the benefit year. This allows them to have the paid contribution test applied against any year of their life. Provided you have previously worked for at least 26 weeks at some time in the past and earned above the Lower Earning limit for NI you could therefore qualify. People who have never worked you cannot qualify.

pmlindyloo said:

So, in theory, you can put in a claim for new style ESA by writing in your UC journal and asking for an application to be made.
I am sorry that I do not know how this would work in practice as most people claim new style ESA along side their UC claim at the beginning.
I am presuming that you both had a Work Capability Assessment and both were awarded LCWRA so would expect that you would not have to go for another WCA to be awarded new style ESA and be put in the support group.  

I think that is what should happen. However I think ESA will still only be paid at the Assessment rate for the first 13 weeks - but I can't find anything to confirm this.

joshgiova

calcotti said:

pmlindyloo said: Yes, you can only have one LCWRA in payment and anyone with LCWRA cannot claim CA.

I don't think that is correct. Someone cannot be paid LCWRA element of UC and carer element of Uc bit I don't think there is anything that stops someone with LCWRA claiming CA.

joshgiova said: I have read that I may be eligible to claim "new style" ESA as I have received NICs from my carers allowance claim for the past 2 years and have also paid NICs from employment in the past. Am I right in this?

That is correct (although DWP sometimes get this wrong). The normal rule is that if you applied for new style ESA now the claim would be assessed on your NI contributions for 2017-2018 and 2018-2019 and on of the tests is that you need to have actually paid NI for the equivalent of at least 26 weeks in one of these two years. You have not done this but there is a relaxation of the rules for people who claimed Carers Allowance in the preceding tax year prior to the benefit year. This allows them to have the paid contribution test applied against any year of their life. Provided you have previously worked for at least 26 weeks at some time in the past and earned above the Lower Earning limit for NI you could therefore qualify. People who have never worked you cannot qualify.

Thanks. This clarifies what my understanding was. I have had paid work previously for several years so that wouldn’t be a problem. I will have credits for 18/19 and 19/20 from CA and from earlier tax years for paid employment.

I will send a message through my UC journal explaining the situation and go from there.