National Insurance and new style ESA

beelady44

Hi, I am looking to claim New Style ESA but am unsure of my National Insurance contributions. For the year 2023 - 2024 I have a full year of NI credits. For the year 2024 - 2025 I have 10 weeks NI credits and 42 weeks class 2 voluntary contributions. Does this enable me to claim new style ESA or will I be penalised for the 10 weeks in the year 24-25? Any help extremely appreciated as I am being told different things from different sources.

Spoonie_Turtle

• First contribution condition - in one of the last two complete tax years, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; and
• Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions on earnings of at least 50 times the lower earnings limit.

https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based

If that helps at all.

Suzycoll

https://forums.moneysavingexpert.com/discussion/6657681/national-insurance-and-new-style-esa

Hi

When you claim I THINK they go back two tax years

So ... April 2023-2024 & April 2024-2025 (if you claim before the upcoming tax year April 2026)

huckster

Correction. Of course in regards to ESA, voluntary class 2 NI contributions do count.

Spoonie_Turtle set out the qualifying terms above. It appears you meet the first contributions condition, but possibly not the second contributions condition.

Presume you have looked into Universal Credit.

p00hsticks

https://forums.moneysavingexpert.com/discussion/comment/81906524#Comment_81906524

No, the roll-over of the 'benefit year' used when calculaling eligibility is linked to the calendar year, not the tax year.

So now they are looking at 2023-24 and 2024-25.

Prior to the first Monday (Sunday ?) in January it would have been 2022-23 and 2023-24

As voluntary contributions don't count I don't think the OP will qualify, but no harm in applying

Yamor

Class 2 contributions do count, even though they were voluntary. It is only Class 3 voluntary contributions which don't count.

beelady44

Thanks all for taking the time to help, much appreciated. I have applied but been told that I didn't qualify. It seems though that because my year 24-25 has not been updated on HMRC website, they have disregarded this year completely. I telephoned them to explain and they told me to reapply. I was then sent a form asking for details of my disability which I assumed meant I may qualify. Two days later I was sent another letter saying again that I didn't qualify. I am confused. :)

sammyjammy

https://forums.moneysavingexpert.com/discussion/comment/81906524#Comment_81906524

You are correct in your first point but the tax years change on the first full week of January not in April.