Urgent Warning for ESA Claimants: Key Changes to Benefits Ahead

Urgent Warning for ESA Claimants Key Changes to Benefits Ahead

Urgent Warning for ESA Claimants: Key Changes to Benefits Ahead

In recent news, the Department for Work and Pensions (DWP) has issued a crucial warning to those claiming Employment Support Allowance (ESA). As part of a sweeping reform of the benefits system, ESA, along with several other legacy benefits, is being phased out and replaced by Universal Credit (UC). This transition requires immediate action from ESA claimants to prevent potential disruption to their financial support.

The overhaul will integrate a variety of benefits into UC, including Child Tax Credit, Housing Benefit, Income Support, Income-Based Jobseeker’s Allowance (JSA), Income-Related ESA, and Working Tax Credit. However, unlike what many might expect, ESA payments will not be automatically transferred to Universal Credit. Instead, claimants will need to actively apply for UC to ensure continuity of their benefits.

Around 800,000 ESA recipients are receiving migration notices from the DWP this month. These notices instruct individuals to apply for Universal Credit within three months to avoid losing their current benefits. Given the timing of this transition, many could face a gap in their payments right around the Christmas period, a particularly challenging time for many.

Also Read:

ESA is designed to assist those with health conditions or disabilities that limit their ability to work. The benefit helps cover living costs and supports claimants in returning to work when possible. Those receiving ESA can also claim Personal Independence Payments (PIP), which are designed to support individuals with long-term physical or mental health conditions.

For those transitioning to Universal Credit, the amount of support received will vary. Universal Credit provides a standard monthly allowance based on age and household circumstances. For example, a single person under 25 may receive £311.68, while a person over 25 could get £393.45. Couples receive more, with the figures depending on their joint circumstances. Additionally, claimants with "limited capability for work and work-related activity" may be eligible for an extra monthly amount of £416.19.

Importantly, Universal Credit will replace other benefits like Income Support and Housing Benefit, which also require claimants to apply for UC. Those affected will receive migration notices similar to those sent to ESA claimants. Failure to act on these notices could result in a loss of benefits, underscoring the need for prompt action.

The new-style ESA, which is available to those under the state pension age with qualifying health conditions or disabilities, will continue for up to 365 days for those in the work-related activity group, with no time limit for those in the support group. However, once transitioned to Universal Credit, claimants will no longer receive the disability premiums associated with ESA but might receive a transitional amount to make up for any shortfall.

As we approach the holiday season, it's critical for those receiving ESA and other legacy benefits to keep a close eye on their migration notices and ensure they complete their Universal Credit applications promptly. This proactive step will help avoid any interruption in their financial support during a time when it's most needed.

Read More:

Post a Comment

0 Comments