switch to UC

popps1

My adult son who lives with me is on income related esa and is thinking of claiming UC as his payment would be about another 80 pounds per week and he would be in a position to claim housing costs because he wants to rent a flat   His ESA is currently unser review sent form in ages ago and he has had an assessment for PIP and should get a decision in about a month.  What are the pros and cons of switching at this stage.  Also is it better to be on UC before looking for a flat or wait till he finds something  Thanks

popps1

sorry extra payment would be 80 pounds per month

poppy12345

The extra £80 ish per month is only in place until April 2021. Which group is he in for ESA? and how old is he?

calcotti

When he looks to rent what will he be looking to rent?
If he obtains an award of Daily Living PIP and is able to fund starting a tenancy, if he is then living alone (which would include renting a room in a shared house) he will be able to claim a Severe Disability Premium in the ESA which is worth £66.95/week. Having got that he would be entitled to claim Housing Benefit rather than UC.

i would suggest waiting for a PIP decision because then he will know the range of options available and the extra PIP money (if awarded) may give him extra flexibility in managing the transition financially. 

popps1

He is 44 ans in the WRAG group would be looking for one bed flat

calcotti

popps1 said:

He is 44 ans in the WRAG group would be looking for one bed flat

So would be living alone - that reinforces my opinion that it would be sensible to wait until he knows whether he has been awarded Daily Living PIP and whether his ESA has been renewed.
If that happens he would need to find a flat and move into it, then inform ESA that he is living alone and request the SDP is added to the ESA and only then claim HB. 

If applicable ESA with the SDP will be worth more than UC and, as poppy said earlier, the extra £80/month on UC is set to disappear in April next year unless the government change their mind.

Help with rent (whether HB or UC) will be limited to the one bedroom rate for Local Housing Allowance. https://lha-direct.voa.gov.uk

If on the other hand he wants to switch to UC it would in my opinion be better to claim before moving. If he took on a tenancy near the end of an assessment period he would still get help with rent for the whole assessment period which means that he effectively gets help with rent for a period when he is not actually paying any.

poppy12345

Thinking ahead here and knowing just how difficult it is to find a landlord that accepts those claiming benefits.

Claiming the SDP if he has the PIP award so he can claim housing benefit will totally depend on when he moves. If it's before January 2021 then he will be able to do as advised by Calcotti BUT if it's after January 2021 then he will need to claim UC anyway because the rules change for those claiming SDP.

calcotti

poppy12345 said:

Thinking ahead here and knowing just how difficult it is to find a landlord that accepts those claiming benefits.

Claiming the SDP if he has the PIP award so he can claim housing benefit will totally depend on when he moves. If it's before January 2021 then he will be able to do as advised by Calcotti BUT if it's after January 2021 then he will need to claim UC anyway because the rules change for those claiming SDP.

Thanks for highlighting that poppy. The exact date is 27th January 2021.