New Style ESA - NI contributions issue

weirdtimes

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

Jyana

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

Spoonie_Turtle

Jyana said:

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

But working 25+hrs/week should have been enough to earn class 1 credits at least (if not actually paying the contributions, I don't know what the earnings threshold translates to).

HillStreetBlues

Spoonie_Turtle said:

Jyana said:

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

But working 25+hrs/week should have been enough to earn class 1 credits at least (if not actually paying the contributions, I don't know what the earnings threshold translates to).

But that would have been in only one tax year, would need two to qualify?

Jyana

Spoonie_Turtle said:

Jyana said:

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

But working 25+hrs/week should have been enough to earn class 1 credits at least (if not actually paying the contributions, I don't know what the earnings threshold translates to).

Ahh sorry, I didn't catch the + on the 25hrs and just saw the variable. I'm a lil under the weather this afternoon, prob should stay offline! 

Spoonie_Turtle

HillStreetBlues said:

Spoonie_Turtle said:

Jyana said:

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

But working 25+hrs/week should have been enough to earn class 1 credits at least (if not actually paying the contributions, I don't know what the earnings threshold translates to).

But that would have been in only one tax year, would need two to qualify?

Yes, and the previous tax year covered by credits from ESA.  Unless I've misread this person's post as well (entirely possible!).

TimeLord1

How did you check your National Insurance contributions online HMRC gateway. But it's two full years prior to the year your claiming in and be within the savings limits. 

Jyana

Spoonie_Turtle said:

HillStreetBlues said:

Spoonie_Turtle said:

Jyana said:

weirdtimes said:

Hi there, hoping someone can point me to where I could find the relevant guidance, or knows more about this than me!

This is my situation:
Was on income-based ESA (and PIP) for years. Started work under Permitted Work rules January 2022. At the start of April, I ended ESA claim and was working 25+hrs (variable) a week. Claimed UC and got a small/variable amount of this, until May 2023 when I inherited enough money to take me over the savings limit for any income-based benefits. 

Unfortunately due to changes to my working conditions my mental health was affected to the point I had to give up work, early Jan was the end date. I'm looking for work now but was advised it was better to claim New Style ESA rather than New Style JSA as I can restrict my search to jobs I can reasonably manage (GP is happy to provide fit notes). I realise the National Insurance issue will probably be the same for both benefits. 

The DWP have decided that I've not paid enough NI contributions to be eligible. Tax years used are 21-22 and 22-23. 

I have checked my NI record and both years show full contributions. 22-23 is from work, and 21-22 I have been credited with contributions. 

I can understand that if the credited contributions are not from employment they may not be counted - but I want to be sure! Especially as the CAB website states: 
You'll meet the National Insurance conditions if you have either:

- full years of contributions from employment or self-employment for both tax years

- 1 full year of contributions from employment or self-employment and the other full year from National Insurance credits

According to this, I should meet the NI conditions. 

Advice appreciated!

I think the issue you have come against is that while on UC you only received Class 3 NI Credits, where as I think you require Class 1 Credits in order to qualify unfortunately. 

But working 25+hrs/week should have been enough to earn class 1 credits at least (if not actually paying the contributions, I don't know what the earnings threshold translates to).

But that would have been in only one tax year, would need two to qualify?

Yes, and the previous tax year covered by credits from ESA.  Unless I've misread this person's post as well (entirely possible!).

That's how I've read it; ESA during 2021 and up to April 2022, when it was ended. So Class One Credits for that period. Then working over 25hrs a week from then to past April 2023, so easily over, the then, £190/week threshold for paying NI Contributions, even at minimum wage.

weirdtimes

Thank you for the replies.

I MADE A MISTAKE!

Have checked the letter again and they say they've used tax years ending '21 and '22 to assess my claim. 

Now the question is - why? And can I challenge that so they use '22 and '23?

weirdtimes

Ok...
Now I have unearthed info saying the benefit year starts after the first Sunday in January. 
So a claim made before then will use tax years ending '21 and '22, and a claim made after then will use years '22 and '23. 

Leaving aside a frustrated rant about why this is, and why they don't make it known...

My claim was dated 3rd Jan. Does this mean I will be entitled from (Monday) 8th Jan? Or is my whole claim messed up because it started on the 3rd so they'll keep using those tax years? 

If so, can I somehow cancel my claim and make a new one? 

huckster

Contact ESA to see if they can change start date to 8/1/24 or if you have to submit new claim. Hopefully they can just adjust the start date.