Esa ir to Esa new style - is this possible?

Magpie123456

Hello everyone, hope I'm doing this right, im a. Newbie

At the moment I am in receipt of income based Esa. I am expecting the migration letter anytime soon...Well, dreading it really.

My question is, is it possible to change from income related, over to new style?/cb
So that I do t have to go on universal credit?

My situation is, I'm due to take my occupational pension shortly, and I know if I'm on ir esa, or uc, my pension will be deducted pound for pound. So wondered if I could somehow go over to new style esa, to avoid staying on i/r, which will shortly be uc?

I have been on ir esa since 2012, and have been a carer for many years, so wondered if now the credits I receive from carers allowance, are enough for me to qualify, and how would I go about it.

I would be grateful if anyone has done this, or if it is possible.

Many thanks

p00hsticks

My inexpert understanding is that you need to have been in employment or self-employment over the last two years with sufficient NI contributions paid to qualify for new-style ESA - credits obtained via ir ESA or Carers Allowance won't count. 

Spoonie_Turtle

p00hsticks said:

My inexpert understanding is that you need to have been in employment or self-employment over the last two years with sufficient NI contributions paid to qualify for new-style ESA - credits obtained via ir ESA or Carers Allowance won't count. 

There is a relaxation to one of the contribution conditions for anyone who has been a carer before claiming ESA, but they do still need to have contributions or credits from working at some point.
https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based
BUT I don't know if that applies to the OP as ESA is an overlapping benefit so they won't have received CA even if they applied for it.
Also class 1 credits do count towards the second contribution condition (but again, I don't know if it applies to OP).

OP, are you certain your ESA is fully income-related, not partly contribution-based with an income-based topup?  There are some weird rules for older claims - did you claim anything before it?  Work before it?
Although even if it is, cb- and New-Style ESA do take into account any pension above £85/week.

Magpie123456

Thank you both, P00hsticks and Spoonie_Turtle.

Spoonie_Turtle - yes, it's definitely i/r.

I was originally on income support as 'signed off sick', but was then transfered to esa i/r.
I had worked previously full time for many years, but not in 'their qualifying years'. 

Magpie123456

P.s. - As for carers allowance. I do actually receive it, however it is deducted in full from my esa.

housebuyer143

Magpie123456 said:

P.s. - As for carers allowance. I do actually receive it, however it is deducted in full from my esa.

Well, if you have carers allowance over the qualifying years then you might potentially qualify for it, because they do accept carers NI credits. 

huckster

Suggest that you contact ESA and ask the following question.   As part of the migration to UC, will I be eligible for natural migration from Income based ESA over to New Style ESA?

There is a process at the moment where ESA are identifying claims, where the ESA claim is not closed after the claimant has made a claim for UC.  ESA are allowing the ESA to remain live and they transfer it across to New Style ESA as part of a natural migration process. 

Newcad

I would look at this a different way.

Can you defer your occupational pension until you Reach State Pension Age?

I have done that myself.

I'm already on UC and reached my occupational pension commencement date in February 2025 - Instead of taking the pension income and having it then taken £ for £ from UC as 'Unearned Income' I didn't sign/return the pension commencement quotation papers.
That means that I have deferred the pension until I am ready to start taking an income from it, at which time I'll request a new commencement quotation and sign it.
(That will be at my SPA. or maybe slightly after my SPA, the interest rules on it may mean that in my case it may be worth waiting until April's new tax year to maximise the deferral interest).

It is only pension income that you are actually taking that counts to reduce IR benefits - if you have deferred it then you are not taking it so it isn't income.

So my UC isn't reduced, and my occupational pension is still growing while it's in deferral.

Note that if your occupational pension is eligible for a Pension Commencement Lump Sum (PCLS) then you can take such a lump sum without it affecting your ongoing Income Related benefits - as long as it doesn't take you over the £6K savings/capital lower limit.
That's because taking a PCLS is counted as capital and not Income, and it's only the 'Unearned Income' that reduces your benefits.
(Unfortunately mine is one of the 'Defined Benefit/Minimum Guaranteed Payment' type that doesn't have a 'Pension Pot' so no PCLS was available to me).

Magpie123456

Thank you all for your great advice and taking the time to explain.

Housebuyer143- Thank you, hopefully then my carers credit will be enough ☺ 

Huckster - Thank you for the information, I didnt know that. I will contact Esa and ask

Newcad - Thank you for all the information. Gratefully received.
When I was approaching 60, I was advised to defer. Which I did, however the pension people (occupational pension) told me that I must take it when I reach 65.
So this is approaching very soon.
I'm not sure which type of pension it is. But I expect they will contact me soon.

Getting nervous every day with the post, as I'm not looking forward to the migration of uc, and was really hoping I could transfer over to NS and avoid uc completely...But i guess thats just wishful thinking. But would be a great relief.

I struggle 'trying to sort things out'. All takes its toll on me, on top of my conditions and trying to care, am mainly exhausted mentally as well as physically However it looks like I will need to make some phone calls. Esa etc 

So grateful to you all, many thanks for all your information 

8dayweek

OP, do you also receive Housing Benefit? If so, it would likely be a fruitless exercise as HB is also being migrated to UC. 

Magpie123456

8dayaweek - Thank you for your kind response. However, I'm not on Hb.