Savings cap on IB/ESA

[Carneucopia]

Hi reddee
If income based is means tested, what about contribution based is this also means tested ? if anyone has paid there NI contributions as I have I got IB awaded.
Has means testing been put into law yet regarding esa ? as AlisonB says not maybe we will have to keep a close eye as I am sure many people will be.

ESA is working in the same way as JSA with regard to means testing. The first 12 months on ESA is on contribution based IF the claimant has paid the correct NI contributions before going on ESA. Contributions based benefits are not means tested because of this. After 12 months - or if the NI contribution record is insufficient - ESA is means tested.
Yes this is already law, and was applied to existing ESA claimants from April this year. Only people on ESA conts based who are in the Support Group will continue on conts based, and the old 'linking rules' for claims have gone. This is why it is so important for people to appeal if they think they should be in the Support Group rather than the WRAG.

[Teri]

If anyone is awarded damages for a work-related injury, a component of this could be compensation for future reduced earnings and reduced pension. If that compensation is counted as part of 'savings', then that person is deprived of the opportunity to have a decent pension on retirement. This is adding insult to injury.

Teri

[Duncan]

Hi reddee
Thanks for the info, my basic question is this, is ESA which all IB people will be on by 2014 means tested ? as my present IB is not means tested.

Income based ESA is means tested yes Derek and i am guessing that people who are going to be moved from IB to ESA will go on income based ESA.

Hi reddee
If income based is means tested, what about contribution based is this also means tested ? if anyone has paid there NI contributions as I have I got IB awaded.
Has means testing been put into law yet regarding esa ? as AlisonB says not maybe we will have to keep a close eye as I am sure many people will be.

If you were getting Incapacity Benefit contribution based and have been moved onto ESA, that is not means tested. But it will only be paid for a year if you are in the work related activity group.

If you get ESA contribution based, that is not means tested but only last a year if you are in work related activity group.

If you are getting ESA income based, that is means tested but stays in payment as long as you qualify for it.

[Stig]

What about contribution based ESA in the support group is there a time limit ?

[davewhit]

What about contribution based ESA in the support group is there a time limit ?

no time limit at the moment

[Stig]

What about contribution based ESA in the support group is there a time limit ?

no time limit at the moment

Cheers Dave : )

[gus]

What about contribution based ESA in the support group is there a time limit ?

No there is no time limit.But ESA support group is awarded for a certain amount of time . The max is three years which is what I was awarded. I had to ask DWP how long my award was for.

[Carneucopia]

If anyone is awarded damages for a work-related injury, a component of this could be compensation for future reduced earnings and reduced pension. If that compensation is counted as part of 'savings', then that person is deprived of the opportunity to have a decent pension on retirement. This is adding insult to injury.

Teri

That's a very good point Teri but as far as I'm aware has always been the case. It's not a new rule. Any component for future loss of earnings which is included in compen should be clearly shown in the settlement, and loss of earning impacts on future state pension of course.
I'm not sure if that element of compen can be disregarded as savings though, and would be interested to hear if anyone has the rules on that?

[davewhit]

No there is no time limit.But ESA support group is awarded for a certain amount of time . The max is three years which is what I was awarded. I had to ask DWP how long my award was for.

there is always the chance that it will be awarded again at review I like most people expect to go in support group when I move from IB and see no reason not to stay in support group when I get reviewed ...... even if I have to keep going to appeal .......it will past the time