The older types of ESA are income-based ESA and contribution-based ESA. While both serve the same purpose, the type you’re eligible for depends on your financial circumstances and work history.
Contribution-based ESA is available to people who have made sufficient National Insurance contributions over the past two to three tax years. It isn’t means-tested, meaning your income or savings won’t affect your eligibility. This type of ESA is time-limited to one year if you’re placed in the work-related activity group, though there’s no time limit for those in the support group.
Income-based ESA is a means-tested benefit, which means your eligibility depends on your income and savings. It’s designed for people who haven’t paid enough National Insurance contributions to qualify for contribution-based ESA or who need extra financial help. This type of ESA has been replaced by universal credit for new claimants, but some people who claimed before universal credit was introduced might still receive it.
You can no longer make new claims for contribution-based ESA benefit but, if you already receive it, you might be able to make a new claim for income-based ESA alongside it. Some people are also eligible for income-based ESA benefit while they’re claiming universal credit.
How much is ESA benefit?
The amount you receive from ESA benefit depends on your circumstances including your age, how far along your claim is and whether you’re put in the support group or work-related activity group.
When you first apply for ESA, you’ll normally receive an assessment rate while your claim is being processed. For those under 25 this is currently £71.70 per week, and for people over 25 it’s £90.50 per week. Once your work capability assessment is complete, and if you’re deemed eligible, your payments will increase.
The assessment stage should take no more than 13 weeks, but if it does you’ll keep receiving this rate and your ESA payments will be backdated once the amount has been confirmed.
People placed in the work-related activity group will receive up to £90.50 per week once their claims are processed. If you’re in the support group, the amount rises to £138.20 per week based on the assumption that people in this group have more serious health conditions and therefore have to cover higher care costs. These rates can vary based on your circumstances.
How to claim ESA
The easiest way to start your claim is by applying online. Be prepared to give information and supporting evidence for your circumstances, including your income, health condition and National Insurance contributions. You can apply by phone if you’re unable to apply online – call Jobcentre Plus on 0800 055 6688.
You must be aged 16 or older but under state pension age, as well as having a health condition or disability that limits your ability to work. You should either be working below a certain number of hours or not be working at all. You can claim ESA when self-employed.
Once you apply, you’ll undergo a work capability assessment to determine whether you’re eligible and which group you’ll be placed in. This involves submitting a detailed medical questionnaire, paperwork from doctors and, in most cases, attending a face-to-face or virtual health assessment. The process can take several weeks.
The new Labour government’s first Autumn budget in power sparked anxiety among disabled claimants when chancellor Rachel Reeves said ministers would push forward with a tightening of the work capability assessment.
The details of the changes – first proposed by Rishi Sunak’s Conservative government – remain unclear, but it’s believed they will make an already stressful process all the more difficult for disabled and ill people trying to access financial support.
People who have gone through the process already find it “degrading” and detrimental to wellbeing, according to the DWP’s own analysis.
“This risks undermining the wellbeing of disabled people, and the consequences could be devastating,” said Richard Kramer, chief executive of disability charity Sense.
“Disabled households are living in crisis, their current welfare benefits barely cover the essentials and spiralling food and energy costs have pushed many into debt and despair.”
If you’re concerned about completing the work capability assessment, you can get free and tailored support from your local Citizens Advice.
What other benefits can I claim with ESA?
ESA doesn’t necessarily operate in isolation, and many claimants are eligible for other financial support. If you’re claiming income-based ESA, for example, you might also be receiving housing benefit to help with rent costs or have a council tax discount to lower your monthly bills.
If you are disabled or have a long-term health condition, you can claim personal independence payment (PIP) or disability living allowance (DLA) at the same time as ESA benefit. You might also qualify for child tax credit or universal credit alongside ESA, but you can’t claim it at the same time as jobseeker’s allowance (JSA) or income support.
Use a benefits calculator or other online resources to check which benefits you might be entitled to.
Remember that if someone in your home helps with your care, they might be able to claim Carer’s Allowance.
Is ESA affected by savings?
Your savings can have an impact on your ESA entitlement, but it depends on the type of ESA you’re receiving.
Neither new-style ESA or contribution-based ESA are affected by your savings. Income-based ESA, however, is means-tested. If you have savings of more than £6,000, your payments will be reduced, and if your savings exceed £16,000 you won’t qualify for income-based ESA at all.
It’s important to report your savings accurately when applying or renewing your claim – failing to do so could lead to the government paying you more than you’re entitled to under their policy, and leave you to repay the extra.
What work is permitted while claiming ESA?
Claiming ESA doesn’t necessarily mean you can’t work at all. The scheme allows for a small amount of work which lets you earn some income without losing your benefits. This can be a helpful way to ease back into employment while managing your health condition.
Under permitted work rules, you can work up to 16 hours per week and earn up to £183.50 per week without affecting your ESA benefit payments. It’s important to check with the DWP before starting any work to be certain you’re staying within the guidelines and won’t be left out of pocket.
You can do as much voluntary work as you feel able to without it affecting your payments, but you should note this work when making a claim.
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