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UC v Contribution based ESA - savings criteria.

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5 months 4 weeks ago #291537 by Gordon
JJ

Voluntary Contributions only count towards the State Pension, not NS ESA.

I can't give you a definitive answer for their working especially if it is self-employment but there are minimums comes that have to be met to receive NI Credits and higher ones for NI Contributions. The following page has the amounts.

www.gov.uk/government/publications/rates...urance-contributions

Providing the minimums are met then they should be OK to claim NS ESA.

Gordon

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5 months 4 weeks ago #291540 by Gordon
TC

I am sorry but your information is incorrect.

The Tax years to be used for a claim of NS ESA are set by the date of the claim, for a claim made today they are, as previously stated 2021-22 and 2022-23. The person has only a partial year of NI Credits or Contributions in the Tax Year 22-23 and so does not meet the criteria.

Their having LCWRA under UC is irrelevant as the payment of NS ESA is predicated on the claimant meeting the two Contribution Conditions, which they do not. At best, they would qualify for the payment of Class 1 NI Credits, however, this would restrict their working hours and income for the following years due to the Permitted Work limits.

Gordon

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5 months 4 weeks ago #291547 by JJ
Thank you SO much for this Tamara.

It is yes to all those questions, but Q4 the entitlement to LCWRA came following the completion of the correct paperwork in March 2022 following assessment phase, then the award kicked in in the September 2022, as a result of the telephone interview to ascertain the required points.
When the applicant came to me for help with the paperwork, he had already been placed on UC. I had presumed that the DWP's policy to migrate towards UC was relevant to his case.

I doubt if these difference in months are going to make any difference to what you are saying regarding the entitlement to NS ESA.

This is good news for my friend
Thank you so much !!
Even my local Welfare Rights Team are not aware of this.

Kind Regards.

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5 months 4 weeks ago #291551 by Tammy Curtis
Replied by Tammy Curtis on topic UC v Contribution based ESA - savings criteria.
Could you explain the part of the regulations that you posted a link to earlier, under contributions criteria, where it states that the 2 relevant tax years are the ones immediately preceding the one in which LCWRA is awarded?
Tamara

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5 months 4 weeks ago #291566 by Gordon
TC

I assume you mean me.

The Welfare Reform Act 2007, Schedule 1, Part 1, para 1(1)

and

The Welfare Reform Act 2007, Schedule 1, Part 1, para 2(1)

www.legislation.gov.uk/ukpga/2007/5/schedule/1

Gordon

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5 months 4 weeks ago #291578 by JJ
"the claimant has actually paid Class 1 or Class 2 contributions in respect of one of the last [F2two] complete tax years (“the base tax year”) before the beginning of the relevant benefit year,"

Thank you both.

I have looked at the legislation & I suppose it can be confusing.
As it refers to the relevant benefit year.
So Tamara is saying that the relevant year is the one before the award of the LCWRA
& Gordon points out that the relevant year is the one before the potential new claim.

I am very grateful for any guidance.

When I spoke to Welfare Rights they suggested that the applicant make a claim for NS ESA & let the DWP decide on the eligibility, as I was not sure, at the time, of the applicants NI record. But, they have since said that the claimant would not be eligible if the last NI contributions would have been in January 2022.

I have now advised the applicant of this.

It is a shame that there is no scope within UC for a contribution based reward.

Thank you again.

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