UC or New Style ESA?

Is Universal Credit or new style ESA better? I understand ESA allows you to continue your NI contributions whereas UC doesn't. I understand ESA is taxed but UC isn't. However, I am still receiving half contractual sick pay for which I am paying NI contributions so not sure whether I need this extra 'bonus' with ESA.

Comments

  • Rubyroobs
    Rubyroobs Posts: 845
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    edited 9 February at 2:48PM
    It depends really if you will actually qualify for any Uc whilst receiving half pay ? Do you have a partner, kids or rent to pay ? If not then ESA  would likely work out more for you. There is no harm claiming them both, but ESA is deducted in full from UC. I always think it's a good idea to claim the new style ESA if you qualify for it as if your situation changes meaning you wouldn't qualify for Uc you can still continue to claim it as it's non means tested.
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 8,143
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    EBay42 said:
    Is Universal Credit or new style ESA better? I understand ESA allows you to continue your NI contributions whereas UC doesn't. I understand ESA is taxed but UC isn't. However, I am still receiving half contractual sick pay for which I am paying NI contributions so not sure whether I need this extra 'bonus' with ESA.
    Both give NI credits, ESA gives class 1 and UC gives class 3.

    You'd have to do some benefits calculations to see whether you'd be better off on either one.
  • Jyana
    Jyana Posts: 653
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    You won't be able to receive ESA while getting SSP, so if that is what your sick pay is you will only be able to go for UC at present. You can make an application for ESA up to 3 months before SSP ends so that it will start when it does however. 
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