Benefits when being medically retired in your 30s

Alice_Holt

Spoonie_Turtle said:

pinnks said:

poppy12345 said:

UC is a means tested benefit so any earnings she receives at the moment will reduce her UC by 55p for every £1 of earnings she receives each month. When she starts to receive her pension then this will reduce her UC £1 for £1 because it's classed as "other income."

To claim for help with the mortgage through SMI then she needs to be receiving UC for at least 3 months in a row. https://www.gov.uk/support-for-mortgage-interest/eligibility

If she has a limited capability for work she can apply for New style ESA but if her earnings per week are currently more than £167 she will need to wait until her earnings stop. Pensions of up to £85/week are ignored. For every £1/week over this amount there's a 50p/week deduction in the ESA. 

They will look at her NI contributions from the previous 2 tax years (currently 2020/21 and 2021/22) to be entitled to payments and it pays £84.80/week, increrasing to £129.50/week from the 14th week if placed into the Support Group. (25 and over) from the 1st Sunday in January the years change to 2021/22 and 2022/23. She will also need a fit note to claim this. https://www.gov.uk/guidance/new-style-employment-and-support-allowance

nsESA might be something to consider.  She has full NI coverage, and is currently still on fit notes, so it would come down to any assessment and I would imagine that if she is assessed to any category it would be the work-related group.  

Do be aware that the possible outcomes from the assessment include 'fit for work' which would then end entitlement to ESA.  But it may be worth claiming even if only for the time it takes to get a decision, especially as pension income is ignored up to £85 per week rather than the £50 per week of JSA.

The descriptors for ESA are here 
https://www.entitledto.co.uk/help/esa_criteria
With the caveat that someone must be able to do something repeatedly, reliably, safely, and as often as required to count as being able to do the activity.

    Good point about the differing pension income disregard re ESA / JSA.
      
   Also, I think, (since salary payments (and NI contributions) have continued into the 2023/24 tax year)  it may be possible to make a claim for nsESA, (using current fit notes), and still have the NI eligibility to claim nsJSA if / when the nsESA claim ends following an assessment in 2024.

   

theoretica

You don't mention so probably no, but does she have any income insurance which might help with the mortgage? 

pinnks

Unfortunately not

sammyjammy

Has she checked the conditions of receiving the pension with regards when she is back into work?  Its usual that reductions are made to it in certain circumstances so is best to check the terms of the offer.

pinnks

sammyjammy said:

Has she checked the conditions of receiving the pension with regards when she is back into work?  Its usual that reductions are made to it in certain circumstances so is best to check the terms of the offer.

Good point and thanks.  Current understanding is that won't be an issue but it is on the "to check" list as this moves forward.