new style ESA claim

denjim

Hello'

I would welcome advice before claiming for new style ESA.

For more than 15 years I have been self-employed(sole trader) in property rentals. Since 2019 my health has not been good. I've been unable to work. I was going to make a claim for new style ESA. 

My income for the passed 3 years have been very low and I've been living off my savings. But I now have less that 3k savings.

I have 3 properties rented out currently.

Property 1 rental income £550.00 pcm with no Mortgage but  Insurance cost £16.72 monthly

Property 2 rental income £600.00 pcm Mortgage payment £453.58 and Insurance £33.01

Property 3 rental income £425.58 pcm  Mortgage payment £522.10 and Insurance £21.14

Grand Total Monthly earning £528.40

From that £528.40 have and to live on. I pay my own home Mortgage and all other living costs.

From what I understand I can make a claim for new style ESA. But I'm not sure about my  Property 1 having no Mortgage and how it may affect any claim?

Help and advice welcome?

Spoonie_Turtle

Disclaimer: I have absolutely no idea how rental income is treated for ns-ESA.

Have you paid any class 2 National Insurance contributions in the past 3 years?  You can only claim ESA payments if you have enough recent NI contributions or credits https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based

denjim

Yes' I  have paid National Insurance contributions every year.

Spoonie_Turtle

denjim said:

Yes' I  have paid National Insurance contributions every year.

Were they class 2?  (Class 3 voluntary contributions don't count towards ESA.)

If yes, then hopefully others will be able to advise about the rental income and whether you can claim ESA.

huckster

Rental income is seen as capital, savings and investments, so not considered income when calculating benefit awards.

Newcad

In any case NS ESA is a Contribution Based benefit and so current income or capital is irrelevant.

(Apart from income from a Pension).

So this situation is just a question of eligibility, ie whether the correct class of NI was paid/credited in the relevent Tax years.

If that's uncertain then bang in a claim anyway and let the DWP check the NI situation.

Remember that when ESA is claimed you will have to provide Fit-Notes to support the claim, and keep providing them until you have had a Work Capability Assessment and subsequent decision.