Is it better to claim was

Delidi

Hello I'm currently receiving UC and get a work allowance as I'm lcrwa, my 28 weeks ssp will end soon will I be worse off if I claim ESA? 

poppy12345

No, you won't be, you'll still entitled to same amount overall. If you claim New style ESA this will be deducted in full from any UC entitlement. To claim this you'll need to have paid the correct amount of NI contributions in tax years April 2019 to March 2021.

Although it's deducted in full, you would still be worth you claiming it, if you're entitled because it's not means tested like UC is.

Robbie64

The only thing I can think off which may make you worse off is that ESA based on NI contributions (whether the old style or new style ESA) is taxable income unlike UC. Whether that will make you worse off depends on how much income you receive each month / over the course of the tax year.

Delidi

Ok when I go on a benefit calculator I am worse off as it removes my work allowance £335 and deducted the esa also if I don't apply for esa will I keep the work allowance?

poppy12345

The work allowance doesn't apply to ESA because for ESA it's permitted work rules. The ESA will be deducted in full from your UC so you won't be financially better off by claiming it but as advised there's advantages to claiming it.

The work allowance for UC means that part of your earnings are ignored before the 55% deductions apply. If you're claiming UC as a single person once your SSP ends you will be financially worse off anyway because you will have no earnings.

Delidi

Thanks poppy yes I was hoping the esa would replace the ssp but it seems I will lose the work allowance as I will officially be unemployed due to ill health so I'll be losing around £758 a month £423 ssp and £335 work allowance and esa will be about £248? Which will also be deducted? 

kaMelo

The work allowance is not a sum added to anything therefore you can't lose it in the way you have described.
The work allowance is how much you can earn without it affecting the amount of UC you qualify for, any earnings above the work allowance will reduce the amount of UC at the taper rate of 55%.

Rubyroobs

Yes you will lose the work allowance once your SSp stops because SSP is treated the same way as earnings wheras New Style ESA ia not. Unless you ahve a working partner on your claim in which case you would still benefit from the work allowance.

calcotti

The Work Allowance only applies to earned income (which includes SSP). Once the SSP stops you will not have any earned income so there’s will be nothing  to apply the WA to. Whether or not you claim ESA makes no difference to that.

Delidi

Thanks all that replied so I guess esa will replace my lcwra payment? Why does it have to be so complicated I would just like an idea of my income in the coming months so I can budget I also have a note about benefit cap on my UC account which I thought being unwell made you exempt?

Spoonie_Turtle

Your income in the coming months will basically be your UC amount before any deductions they were making for earnings.  You'll get some of that income as ESA payments and the rest as UC payments.

You should be exempt from the benefit cap.  What exactly does it say about it on your account?
https://www.gov.uk/benefit-cap/when-youre-not-affected