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Is NI contribution record kept alive if in WRAG?

  • asdman
  • Topic Author
13 years 5 months ago #59262 by asdman
The situation I'm thinking about is if someone is currenty getting contribution based IB, then under the migration process is placed in the WRAG. They have too much savings so after a year they stop getting any ESA payments.

What happens if their condition then gets worse to the extent that they would qualify for the support group. Can they make a new claim and be linked to their previous NI contributions so they would qualify for Contributory ESA again?

Hope I've explained this OK

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13 years 5 months ago - 13 years 5 months ago #59263 by Gordon
asdman

You can read the explanatory notes for the Welfare Reform bill here .

The section is question is clause 51.

However, to summarise, you can only re-claim ESA(CB) if you re-establish your qualifying NI history. See paragraph 259.

One final point, whilst change to the Bill is unlikely it is still possible, either on its final reading this week, or in the Lords later.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 13 years 5 months ago by Gordon.

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  • Magic
13 years 5 months ago #59280 by Magic
My husband will have been receiving CB ESA for nearly 2 years when the changes happen. During this time he has been paying tax and NI on his occupational pension. Does this mean that he could reapply for CB ESA? At this point he will be one year short of retirement age.

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  • froglegs
13 years 5 months ago #59287 by froglegs
Gordon I'm also interested in the original question. I have read the bits you linked to but still dont understand. If I am put into the WRAG group on migration and my ESA CB is limited to a year then I get nothing because of my existing ill health pension, will my NI continue to be paid as it is currently on IB? So if I got worse I could reclaim?

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13 years 5 months ago #59298 by Gordon
Magic & froglegs

I'm not an expert, not even close, but I do not believe you pay NI on pension income, only tax.

There are several Classes of National Insurance, Class 4. which is required to gain a full State Retirement Pension are paid while while are receiving benefits such as IB and ESA.

Class 1 and 2 which are required to claim a Contributary benefit such as ESA(CB), are only paid on earnings from employment.

So to try and answer your questions, as I understand it.

Once you've had your year on ESA, you would be eligible for Income Related ESA, although circumstances may mean that you receive no payments. However, the underlying entitlement remains as long as you are found unfit to work, and therefore you would stilll receive NI with regard to a pension.

In simple terms, in order to reclaim ESA(CB) you need to work at least a year, and possibly two years, before you would re-qualify to claim ESA(CB).

Hope this explains it.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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  • pata1
13 years 5 months ago #59300 by pata1
HM Revenue and Customs explains here about

National Insurance Contributions

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