Does ESA continue after State Pension starts?

LateLearner22

My husband is going to start receiving his State Pension soon. He's  had confirmation of payment dates and amounts, but we haven't heard whether his current benefit,  ESA, will stop completely.

The DWP sent a letter late last year, saying it would change due to an age change (ie, he will be 65), but its a very minor reduction in benefit, so we're not sure whether ESA will just stop automatically when he gets his pension payment? 

Thanks for reading this

Julie 

calcotti

ESA stops when he reaches pension age (66) because ESA is a working age benefit.

Can't see any reason why ESA would change as a result of reaching 65.

Is the ESA contribution based or income based? Are you/he claiming any other benefits?

If you are younger than him when he reaches pension age you will be what is known as a 'mixed age couple' (MAC).  Rules for MACs are complicate and it would be sensible to do a benefits check to see if you will have any Universal Credit entitlement when he starts getting his pension. If there is then it is better to claim UC before he reaches pension age because that preserves his Work Capability status without having a further Work Capability Assessment.

LateLearner22

Yes, he gets income related ESA, he also gets DLA,and we get child tax credit and child benefit, plus housing benefit and council tax benefit 

calcotti

You definitely need to get a benefit check done.

The ESA will stop. If you are in doubt ring them to check.
(The ESA letter reference to an age change makes no sense to me.)

If you are younger than him Housing Benefit will also stop.

Child Tax Credit will continue but the calculation will need to take into account the State Pension (which is taxable) whereas income based ESA was ignored (because it is not taxable).

If you still want help with rent you will need to claim Universal Credit - but if you do claim UC the Tax Credits will end which is why you need to do a benefits check first so that you can compare entitlement. Ideally any claim for UC, if that is the best option, would be made before he reaches pension age because it will be a simpler process and will leave no gaps.

What rate of DLA does your husband get? (Is it definitely DLA and not PIP?)

poppy12345

calcotti said:

What rate of DLA does your husband get? (Is it definitely DLA and not PIP?)

It says DLA care/mobility on the bottom of the letter.

calcotti

poppy12345 said:

calcotti said:

What rate of DLA does your husband get? (Is it definitely DLA and not PIP?)

It says DLA care/mobility on the bottom of the letter.

Missed that! Thanks poppy (I forget the target date for all DLA to PIP transfers to be completed - several years ago now).

If husband has been getting mid or high rate care component of DLA all these years the OP would appear to have been potentially missing out on extra money as a carer. Obviously if it’s only low rate care then that isn’t the case.

poppy12345

Not forgetting the NI credits they would be receiving from Carers Allowance, especially if their youngest child is over 12 because they are no longer paid with Child benefit after this age.

LateLearner22

Thank you both for your advice, seems like there's a lot to sort out, and very little time.

Does UC have to be claimed in his name, or can I claim for our family? Just makes things so much harder when things are on his name, but I manage our finances. 

calcotti

LateLearner22 said:

Thank you both for your advice, seems like there's a lot to sort out, and very little time.

Does UC have to be claimed in his name, or can I claim for our family? Just makes things so much harder when things are on his name, but I manage our finances. 

For UC you both claim. One of you claims first and when they say they have a partner they are given a linking code. When the second person says they have a partner they input the linking code and the two claims are then linked so that UC entitlement is calculated as a couple.

Before doing anything you really do need a benefits check.

What rates of DLA does your husband get?

LateLearner22

Lower rate care, higher mobility, which goes on a Motability car

poppy12345

LateLearner22 said:

Lower rate care,

Which unfortunately, doesn't qualify you to claim Carers Allowance. Do be aware that your NI credits towards your state pension will not be paid because it's your partners ESA claim. If your youngest is under 12 then they will be paid through child benefit, once they reach 12 they are no longer paid.