Contribution Based ESA

Carter1808

I am hoping that you can help to explain the rational and reasoning behind the cost of living payments of £650 only being paid to some people who receive ESA.

People who receive income based ESA will automatically receive the £650 cost of living payment. People paid contribution based ESA, which I am receiving, do not receive this payment. The only diffence I can find is that I am classed as contribution based ESA as I used to be able to work and so have paid National Insurance contribution. This does not mean I now receive more ESA, its £117.60 a week and not severe disability premium.

I have spoken to CAB who cannot explain why there is a varitation. 

I look forward in you helping me to understand why there is a difference in a benefit which is essentially the same.

peb

Because contribution based ESA can and is claimed by people who have savings and possibly other income - it is not means tested.    I claimed it for seven months whilst undergoing chemotherapy and radiotherapy, as I had savings I had no need or indeed any eligibility to claim further.  Whether you should be claiming a means tested benefit also or in place of the contribution based ESA other people may be able to advise. 

Spoonie_Turtle

Carter1808 said:

I am hoping that you can help to explain the rational and reasoning behind the cost of living payments of £650 only being paid to some people who receive ESA.

People who receive income based ESA will automatically receive the £650 cost of living payment. People paid contribution based ESA, which I am receiving, do not receive this payment. The only diffence I can find is that I am classed as contribution based ESA as I used to be able to work and so have paid National Insurance contribution. This does not mean I now receive more ESA, its £117.60 a week and not severe disability premium.

I have spoken to CAB who cannot explain why there is a varitation. 

I look forward in you helping me to understand why there is a difference in a benefit which is essentially the same.

Income-based ESA is assessed on one's means to live, it takes into account any other income and savings, including any a partner may have.  Contributions-based ESA does not, apart from taking into account any pension over £85 per week.  Someone claiming contributions-based ESA could be a millionaire, whereas only people on a very low income will qualify for income-based ESA.

The Severe Disability Premium is only available for income-based ESA (or an income-based topup for contributions-based) where a person claims a qualifying disability benefit and lives alone, or with someone else who also claims a qualifying disability benefit and is thus disregarded.

When did you claim ESA?  If it is the old contributions-based (not New Style ESA) have you ever applied for the income-based topup?

calcotti

The CoL payments have been made to means tested benefits. Contribution based ESA is a contribution based benefit, not an income based benefit.
If your ESA  is the old type you would be assessed for both contribution based and income based entitlement. If you are not getting any income based ESA that means that you have other income or capital that excludes you from an income based top up and had you not been getting contribution based ESA you would be getting less SA than you do.
If you are on new style ESA you could, if your income is low and not excluded by capital, have UC as a top up which would have qualified you from CoL
Contribution based ESA can be paid regardless to anybody who qualifies regardless of their financial circumstances so paying out CoL for contribution based ESA claimants would not be targeted support.

Rubyroobs

As above because it's not means tested. People could have thousands in the bank and a high earning partner and still claim contributions based ESA so it is no indication of whether a person is likely to be struggling !
Have you checked to see whether you would be eligible to claim Universal credit as well as contributions based ESA ? If so then you would likely receive the second part of the Cost of living payment if you put a claim in now.
Contributions based benefits are absolutely not the same.

calcotti

Rubyroobs said:

Have you checked to see whether you would be eligible to claim Universal credit as well as contributions based ESA ? 

.. or income based ESA if the ESA is old style.

Alice_Holt

Carter1808 said:

I have spoken to CAB who cannot explain why there is a varitation. 

  You have spoken to the wrong people, Carter.

 You need to ask your MP / a Treasury representative about policy put into place by HMG      

  Citizens Advice are very busy advising people who need actual help / guidance, it is a clearly a waste of everyone's time to ask them for the rationale behind HMG policy decisions. 

  Give us your full circumstances, income, and savings detail and we will be able to indicate if you have any possible entitlement to a means tested top up (and hence a CoL payment).
 Are you receiving PIP ?
 How much savings do you have ?