The Department for Work and Pensions (DWP) offers a payment boost to individuals who work less than 16 hours a week.
This benefit can be claimed regardless of your employment status—whether you’re unemployed, employed, or self-employed. You may be eligible for up to £140.55 per week.
Eligibility Criteria for Employment Support Allowance (ESA)
Typically, if you’re claiming Employment Support Allowance (ESA), you are allowed to work as long as you don’t exceed 16 hours per week or earn more than £195.50 weekly. Additionally, voluntary work has no time restrictions, meaning you can contribute as much as you’d like.
When applying for ESA, you should inform Jobcentre Plus about your work status, including any volunteering activities. If you’re under the State Pension age and suffer from a disability or health condition that limits your ability to work, you can apply for the New Style Employment and Support Allowance (ESA).
National Insurance Contributions Requirement
To qualify for New Style ESA, you must have a history of either employee work or self-employment, having paid sufficient National Insurance contributions in the past 2-3 years. National Insurance credits are also considered as a qualifying factor.
Potential to Claim Universal Credit
In some cases, you may be eligible to receive Universal Credit either in addition to or instead of New Style ESA. If you qualify for both benefits, the amount you receive from Universal Credit will be reduced by the amount you receive from New Style ESA.
While Universal Credit is typically paid monthly, New Style ESA is often paid more frequently. Additionally, New Style ESA provides National Insurance credits, which contribute towards your State Pension and help you qualify for other benefits.
Timing Your Application
You can apply for New Style ESA up to 3 months before your Statutory Sick Pay (SSP) ends. Your ESA payments will begin as soon as your SSP concludes. Whether you are employed or not, you can apply for New Style ESA.
Impact of Private Pension on ESA Payments
It’s important to note that if you receive more than £85 per week from a private pension, it will impact your ESA payments. For every pound over £85, half of the excess amount will be deducted from your ESA payment each week.
For example, if your private pension is £100 per week, £7.50 will be subtracted from your ESA payment.
In some cases, if your private pension income is high enough, you may receive no ESA payments. However, you would still be eligible for Class 1 National Insurance credits.
The DWP’s payment boost for those working under 16 hours a week can provide much-needed financial support.
The flexibility in working hours, combined with the eligibility for New Style ESA and potential Universal Credit, offers various options for individuals who are either employed or facing health-related challenges.
Understanding the impact of private pensions on ESA payments ensures that recipients can better plan their financial situation.
FAQs
Can I work while claiming ESA?
Yes, you can work up to 16 hours a week or earn up to £195.50 without affecting your ESA benefits. Voluntary work is unrestricted.
How does my private pension affect my ESA payments?
If you receive more than £85 a week from a private pension, half of the excess will be subtracted from your ESA payments.
Can I apply for New Style ESA if I am already working?
Yes, you can apply for New Style ESA if you’re employed and meet the qualifying criteria based on your National Insurance contributions.