New Style ESA Explained

We’re now amid the biggest welfare reform in a generation as claimants are transferred onto Universal Credit from six existing benefits and amongst the legacy benefits it will take over from its income-related Employment and Support Allowance (ESA).

However it is possible to get ESA as well as Universal Credit, so how precisely does this work? And what are the rules for eligibility and the payment rates?

ESA is given to those who have an incapacity or health condition that influences how much they work.

There are two types, contributory ESA, which has been renamed new style ESA, or income-related ESA.

Income-related ESA is being replaced by Universal Credit.

New style ESA is not means-tested but is taxable, whereas income-related ESA is means-tested, so it takes into account income and savings but it’s not taxable.

The new style ESA can be claimed on its own or at the same time as Universal Credit and you’ll be able to get Universal Credit as well if you and your partner don’t have savings of more than £16,000.

Sounds great doesn’t it but the new style ESA will be classed as an income when determining how much Universal Credit you’re qualified to get, so if you’re paid the new style ESA it will reduce your Universal Credit payment by the same amount, bit pointless actually, it’s almost like robbing Peter to pay Paul but I’m sure it looks good on paper but not when it’s coming out of your pocket.

Published by Angela Lloyd

My vision on life is pretty broad, therefore I like to address specific subjects that intrigue me. Therefore I really appreciate the world of politics, though I have no actual views on who I will vote for, that I will not tell you, so please do not ask! I am like an observation station when it comes to writing, and I simply take the news and make it my own. I have no expectations, I simply love to write, and I know this seems really odd, but I don't get paid for it, I really like what I do and since I am never under any pressure, I constantly find that I write much better, rather than being blanketed under masses of paperwork and articles that I am on a deadline to complete. The chances are, that whilst all other journalists are out there, ripping their hair out, attempting to get their articles completed, I'm simply rambling along at my convenience creating my perfect piece. I guess it must look pretty unpleasant to some of you that I work for nothing, perhaps even brutal. Perhaps I have an obvious disregard for authority, I have no idea, but I would sooner be working for myself, than under somebody else, excuse the pun! Small I maybe, but substantial I will become, eventually. My desk is the most chaotic mess, though surprisingly I know where everything is, and I think that I would be quite unsuited for a desk job. My views on matters vary and I am extremely open-minded to the stuff that I write about, but what I write about is the truth and getting it out there, because the people must be acquainted. Though I am quite entertained by what goes on in the world. My spotlight is mostly to do with politics, though I do write other material as well, but it's essentially politics that I am involved in, and I tend to concentrate my attention on that, however, information is essential. If you have information the possibilities are endless because you are only limited by your own imagination...

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