What is income-related ESA?
Income-related Employment & Support Allowance (IR-ESA) is a means-tested benefit that is paid to some people who are unable to work due to an illness or disability.
IR-ESA is paid based on the circumstances of the claimant but also their partner if they have one. It is means-tested, so both income and capital (such as savings and investments) are considered. IR-ESA is paid to people who either did not have enough National Insurance contributions to qualify for Contribution-Based ESA or whose income from that benefit is lower than what the government says they need to live on.
IR-ESA is made up of a basic personal allowance, the amount of which depends on whether you are single or a member of a couple. An additional component is payable because you have been found incapable of work – this is either the work-related component (although this is only payable if your claim started before April 2017) or the support component. There are also extra premiums for special circumstances, some of which are linked to other benefits you might be receiving. The amount of benefit you receive can be reduced if you have other income that is not disregarded or if you have capital over £6000.
Since 27 January 2021, it has no longer been possible to make a new claim for IR-ESA. People who were receiving it before that date may still be doing so. People who receive Contribution-based ESA (not New-style ESA) but whose income is less than what the government says they need to live on can still add IR-ESA to their claim, but this will eventually be phased out.
Will I always be able to claim IR-ESA?
You can no longer make a new claim for IR-ESA but if you are currently receiving it, payment can continue as long as you meet the criteria. However, IR-ESA is a ‘legacy benefit’, which means it will eventually be replaced by Universal Credit. By the end of 2025, the Government expects all IR-ESA claimants to have received a migration notice asking them to claim Universal Credit (UC). You will be given a deadline by which you must apply for Universal Credit and if you have not done so, your IR-ESA will stop 2 weeks after that deadline. There is no right to appeal against the issuing of a migration notice.
