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Thread: Income protection and UC

  1. #1

    Income protection and UC

    Hi

    I'm getting married and as a result will move from ESA to UC.

    However I cannot get DWP/CAB to tell me what happens (I get different answers) with Income protection and UC?

    Anyone else been in that situation?

    Thanks for any advice

  2. #2
    Senior Member nukecad's Avatar
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    I'm not sure just what you mean by 'income protection'?

    I think that you mean the Transitional Protection that will come with managed migration.

    As this is a natural migration, due to getting married, then TP will not apply.

    You need to give more details about what benefits you currently get in order for anyone to give a full answer.

    Do you get the Severe Disability Premium with your ESA?
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  3. #3
    Hi thank you

    Income protection is provided by my employer they pay % of my wage. As I'm disabled and not working. Its provided by Unum and then I get ESA on top off it. The income protection means I only get contribution ESA. Yes I get SDP but I've been told this will stop as it when I get married.

    Atm I get ESA, SDP, HB (very small amount) and my Income protection. Although I get SDP I do not receive any monies for it as Income protection wipes it out. Its quite complex hence I appear to get different versions.
    Last edited by fjmu; 09-07-2019 at 07:15 PM.

  4. #4
    Quote Originally Posted by fjmu View Post
    Hi thank you

    Income protection is provided by my employer they pay % of my wage. As I'm disabled and not working. Its provided by Unum and then I get ESA on top off it. The income protection means I only get contribution ESA. Yes I get SDP but I've been told this will stop as it when I get married.

    Atm I get ESA, SDP, HB (very small amount) and my Income protection. Although I get SDP I do not receive any monies for it as Income protection wipes it out. Its quite complex hence I appear to get different versions.
    Does this answer your question?

    Certain insurance payments
    H5086 [See Memo ADM 9/18] Payments received under an insurance policy which is insuring against the risk of losing income due to
    1 illness or
    2 accident or
    3 redundancy
    are taken fully into account1.
    1 UC Regs, reg 66(1)(h)
    Note : Following the introduction of the loans for mortgage interest regulations1 on 6.4.18, Mortgage Payment Protection Insurance (MPPI) policies or any equivalent payments, are no longer taken into account in UC. DMs should ensure that when considering whether any income at H5086 should be taken into account that the policy does not contain an amount for mortgage protection (sometimes referred to as a ‘mixed income protection policy’).
    1 LMI Regs 2017
    I try my best

  5. #5
    Senior Member nukecad's Avatar
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    Like pmlindyloo I believe that Unum is an insurance policy, as long as your employment has not been terminated, and as such any payments will be regarded as income and will affect Income Related benefits.

    However if you do have an entitlement to SDP (and I'm not sure about that, see below*) then it's 'Old Style' ESA and it would be the DMG guidance that applies rather than the ADM guidance.
    Not that it makes any difference here, the insurance is still counted as income.

    From the Decision makers Guidance (DMG).
    51064 Insurance policy income should be taken fully into account except for income from a mortgage protection policy.
    (As an aside 51798 goes on to say that if your employment was terminated then the payment would become regarded as a pension instead of insurance).

    *However there is still a bit of confusion with what you say above:
    To start with you don't mention getting DLA or PIP, and you won't have an entitlement to SDP unless you get one of those.
    I think you have previously said you were getting PIP, are you still getting it?

    SDP is an Income Related premium, if you are entitled to SDP (even though it's not being paid) then you have both CB ESA and IR ESA.


    Anyway, regarding a possible migration to UC -
    If your ESA is only Contribution Based then getting married will not change it, only Income Related ESA will change upon marriage.
    If your ESA is only Contribution Based then it will not be migrated to UC, only Income Related ESA is migrated.
    There should be no need to change your existing HB claim, so that will not need to be migrated to UC either.
    (If you are in Local Authority housing and currently pay the spare room surcharge then your HB may go up on getting married, as you will no longer be under-occupying).

    Unless you have to make a brand new claim for an Income Related benefit then nothing existing will be migrated to UC (until Managed Migration comes along).

    If you do have IR ESA (as well as the CB) then getting married and adding a partner to an IR ESA claim will usually mean migration to UC; BUT-

    If you do have an entitlement to SDP then you cannot currently be migrated to UC no matter what else happens.

    I think that your problem with getting advice is that you don't know yourself exactly which benefits you are currently getting / entitled to.
    To get specific advice about what will happen then you have to be able to tell people exactly which benefits you currently get, or are entitled to, otherwise the only answers that can be given are 'ifs' - like I have had to do here.
    Last edited by nukecad; 09-08-2019 at 12:40 PM.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  6. #6
    I appreciate your feedback.

    Re the benefits I get. Its not easy for me to understand what I get and even the support staff make it confusing.

    I do get PIP full both rates.

    In terms of ESA my letters are confusing to say the least. They way its described I get Income based and SDP but because of Unum it gets wiped out and I get nothing but I'm entitled to Contribution ESA

    I've put an appointment on with CAB and I will take them all my most recent letters again and see the outcome.

    Sorry for confusing you all

  7. #7
    Senior Member nukecad's Avatar
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    All that seems fair enough. And yes the letters are confusing, (some think they are deliberately confusing).

    From what you say then as it stands you do have an 'entitlement' to SDP, even though it's not actually being paid because of the Unum insurance.

    That means that by law you cannot in any circumstances make a claim for UC - no matter what anyone at the DWP/council tries to tell you.

    Which means that your IR benefits can't be Naturally Migrated to UC even if you get married, the law does not allow it.
    The law as it stands allows you to make claims for the old Income Related benefits (if you need to) instead of UC.

    The problem you are going to have is getting the DWP, and the council, to understand that.
    Which is where a local advisor representing you can help.

    You are correct that once you do get married then your entitlement to SDP will end.
    Which means that one month after that you will no longer be blocked by law (and will have to claim UC for any new Income Related claim).
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  8. #8
    Thanks again.

    Sadly I phoned again today (DWP). When I was reviewed in March they removed my claim for Income ESA and SDP as I wasn't getting paid anyway. I've never received a reward letter advising this and still haven't all I get is typed letters (badly typed) saying my claim is ongoing.

    The lady says it was on the notes for a review re SDP but it was never done.

    So after all that it appears I'm on Contribution ESA.

  9. #9
    Out of interest today been told I need an ESA3 form does that sound right (by DWP)?

  10. #10
    Senior Member nukecad's Avatar
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    Yep, an ESA3 is the form to report a change of circumstances to an existing ESA claim.
    (Such as getting married).

    It's a good sign that they are treating this as something that is a change and not a new claim.

    It's only new claims that can trigger a migration to UC.


    BTW - I don't think we have said yet; Congratulations on your forthcoming nuptials.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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