National Insurance contribution eligibility for employment support Allowance

Cardo19

Hi I was wonder if anyone could help me with my esa claim.. I claimed in September 2020, but because I hadn’t paid enough ni credits for years 17/18 and 18/19 they couldn’t give me any payments, but the pay did put me in the support group and I get ni credits from them.. I was told by a lady I should be able to apply in the future, which I have as my health has got worse, however they have went back to 17/18 18/19 years and it was as situation, however the lady this time said I could fill in the gaps buy paying voluntary ni 2 credits.. she said you need to pay 26 weeks on one of the years at ni 2 and/or a mix of 1 & 2, I don’t know if I should pay both years and they can’t tell me. 
This is my situation.. I’m self employed but on a very low income as I can’t work for long periods and it takes me longer than normal to do a task.  My credits are all credited and not paid.. I’m just unsure what weeks I should pay for and what year to qualify.. many thanks in advance.

2017/18..   52 @ class 3 credits
2018/19..   52 @ class 3 .. 12 @ class 3 .. 24 @ class 1 = 88 ni credits

calcotti

If you are registered as self employed you can pay voluntary Class 2 contributions which are very cheap.
The Class 3 credits don't count at all, the Class 1 credits do.

For 2017-18, to make the year count you would need to pay for 50 weeks of Class 2 contributions.
For 2018-19 to make the year count you would need to add 26 weeks of Class 2 contributions.

If you are paying them late they are not treated as paid until 6 weeks after you pay them so I am not 100% sure whether these are the years that count you need to complete. Thoughts from anybody else?

Out of interest what are the Class 3 credits from? Is it child Benefit for a child under 12?

Cardo19

Hi thank you so much for your info 😊 they said I only need to pay 26 weeks, but I’ve no idea for which year.. the class 3 I think was from child tax credit maybe, I was also a Carer for my gran, so not to sure.

calcotti

Child Tax Credits don’t give you NI credits but Child Benefit for a Child under 12 does (Class 3)

You say you were a carer for your gran, we’re you claiming Carer’s Allowance? If so when did it end?

I’m not clear how they have arrived at 26 weeks due. You need two years which are full with Class 1 or 2 credits or contributions and in one of the years you must have 26 weeks of Class 1 or Class 2 contributions. Class 3 credits do not help.

Do you know what your 19/20 and 20/21 years look like?

What did you get the Class 1 Credits in 18/19 from?

Cardo19

Yeah I was claiming Carers Allowance, 19/20 20/21 are much better, but I would need to cancel my claim and reclaim.  I’ve called citizens advice, waiting for them to  come back to me, I was told to try this forum too.. it’s so complicated, but I’ll probably pay what you suggested.  I’ve no idea about the class 1 either.. thank you for your help 😊

calcotti

Cardo19 said:

Yeah I was claiming Carers Allowance, 

When? (I don’t think it’s going to make any difference in your circumstances but just want to be clear.)
Yes it is complicated! 

airliner

It's incredibly difficult to get to the bottom of whether you meet the contribution conditions or what you have to pay to meet them without more accurate information.

Like Calcotti asked....

Between which dates were you in receipt of Carers Allowance?

Have you been self employed at all times since April 2017? 

When you say '19/20 20/21 are much better' ....what do you mean by this?

I'm sorry to be so direct but I don't want you to pay the wrong contributions and be out of pocket.

calcotti

If your Limited Capability for Work has been continuous since Sept 2020 I think your entitlement to be paid ESA could now be established by looking at any two consecutive benefit years from 17/18, 18/19, 19/20 and 20/21. That’s why we want to clear about your history.

Cardo19 said:

Yeah I was claiming Carers Allowance, 19/20 20/21 are much better, but I would need to cancel my claim and reclaim.  

I’m not convinced that is true.
(Anybody else got an opinion on whether Class 1 credits obtained due to LCW can be used to meet the contributions conditions to give rise to entitlement to be paid ESA going forward from when any additional contributions are paid?)

Just to check too - you are presumably excluded from UC due to capital or other household income.

airliner

I see the following options. To the original poster, please do not go ahead with any of these options without further advice.

1) make late payments of the correct NI contributions for the 2017/18, 18/19 tax years and then ask for the September 2020 decision to be looked at again after 6 weeks of having paid the late contributions - entitlement will begin from that point onwards.

2) Make a new claim now and backdate to November 2021, thus using the 18/19, 19/20 tax years if those are more favorable. This may avoid having to make late National Insurance payments and has the added advantage of receiving a backdated payment.

3) Make a new claim and do not backdate. This will use the 19/20, 20/21 tax years if those are more favourable.

4) Depending on when the OP receive CA, there could be a possibility the September 2020 decision was incorrect. If CA was received in the 18/19 tax year, it allows for any tax year to be used to meet the 1st contribution condition (earnings). This may change things.

There should be no issue with making a new claim and the 'linking rules' because the OP doesn't have an ESA claim at the moment. They are just getting credits for having a LCW.

It's just so happens these can only be attached to the DWP systems under 'ESA'. There is no such thing as a credits only ESA claim.

(Anybody else got an opinion on whether Class 1 credits obtained due to LCW can be used to meet the contributions conditions to give rise to entitlement to be paid ESA going forward from when any additional contributions are paid?)

Credits from LCW will only help a person meet the 2nd contribution condition. The 1st condition can only be met through earnings.

calcotti

airliner said:
4) Depending on when the OP receive CA, there could be a possibility the September 2020 decision was incorrect. If CA was received in the 18/19 tax year, it allows for any tax year to be used to meet the 1st contribution condition (earnings). This may change things.

That's why I asked about Carer's Allowance although in this case I don't think the relaxation makes any difference as OP didn't meet either of the NI conditions for 17/18 and 18/19 so would still need to pay the voluntary Class 2 contributions anyway in which case she would then meet both conditions.

airliner said:

(Anybody else got an opinion on whether Class 1 credits obtained due to LCW can be used to meet the contributions conditions to give rise to entitlement to be paid ESA going forward from when any additional contributions are paid?)

Credits from LCW will only help a person meet the 2nd contribution condition. The 1st condition can only be met through earnings.

I'm fully aware of that - just wanted to check whether anyone saw a problem with using the credits for having LCW towards meeting the qualifying conditions. I realise they are not sufficient on their own.

airliner

calcotti said:

airliner said:
4) Depending on when the OP receive CA, there could be a possibility the September 2020 decision was incorrect. If CA was received in the 18/19 tax year, it allows for any tax year to be used to meet the 1st contribution condition (earnings). This may change things.

That's why I asked about Carer's Allowance although in this case I don't think the relaxation makes any difference as OP didn't meet either of the NI conditions for 17/18 and 18/19 so would still need to pay the voluntary Class 2 contributions anyway in which case she would then meet both conditions.

airliner said:

(Anybody else got an opinion on whether Class 1 credits obtained due to LCW can be used to meet the contributions conditions to give rise to entitlement to be paid ESA going forward from when any additional contributions are paid?)

Credits from LCW will only help a person meet the 2nd contribution condition. The 1st condition can only be met through earnings.

I'm fully aware of that - just wanted to check whether anyone saw a problem with using the credits for having LCW towards meeting the qualifying conditions. I realise they are not sufficient on their own.

I don't think the OP actually said they haven't paid enough in both of the 2017/18 and 18/19 tax years. Subsequent posts were vague or contradictory enough for me to believe option 4 was still in play. Until they come back with a proper timeline of their self employment and Carers Allowance history it's impossible to advise specifically.

Regarding your second point. Thank you for setting me straight on your knowledge of the ESA contribution conditions.