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Thread: Contribution based esa and income related esa. Would I get a budgeting loan?

  1. #1
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    Question Contribution based esa and income related esa. Would I get a budgeting loan?

    Need some help, I currently get CB ESA and have done since I was migrated from IB. I’m in the support group and I also get enhanced rate mobility PIP and standard rate care (my son is my registered career and he gets CA for looking after me). I am a single mum and would be entitled to IR ESA ( I filled in a form to see if I could get a top up but I’ve been on IB and ESA for so long I already get extra money on my ESA. It was some sort of income guarantee when benefit rates were lowered). I didn’t qualify for a top up because I was already getting more than current ESA rates. Would I still qualify for a budgeting loan? I’m absolutely stumped by it all. All the info I see says I wouldn’t get it for CB ESA but as I do strictly speaking qualify and I get the stuff that comes with IR ESS such as free dental and eye care. Can anyone clear this up for me. Many thanks

  2. #2
    Senior Member nukecad's Avatar
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    Hi Star1475,

    Yes you can apply for a Budgeting Loan, you do have IR ESA as well as CB ESA.

    I'll see if I can explain it for you:

    When you transfered from IB to ESA you quallified for what is called a 'Transitional Addition' to make sure that you did not get any less money on ESA than you did on IB.

    It appears that in your case the amount payable with the TA is greater than the amount of IR ESA, so although you are now getting IR ESA your money hasn't gone up.
    (They pay the IR ESA but then reduce the TA by the same amount, leaving you still with the same money overall).

    So you do have IR ESA as well as CB ESA, and so the free healthcare, etc. that comes with IR ESA.

    Note- ALL IB-ESA Transitional Additions will end next year on 5 April 2020.
    This may not leave you any worse off, it will depend just how much TA is still being paid. (In some cases it's as low as 40p a week, which will be made up by next years ESA increases anyway).

    If you could let us know how much you currently get paid as ESA then we could work that out for you.

    As you have an entitlement to IR ESA then you can apply for a Budgeting Loan.
    You can apply on line or download a paper form and apply by post: https://www.gov.uk/budgeting-help-benefits/how-to-apply
    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.

  3. #3
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    Red face Thanks for helping

    Quote Originally Posted by nukecad View Post
    Hi Star1475,

    Yes you can apply for a Budgeting Loan, you do have IR ESA as well as CB ESA.

    I'll see if I can explain it for you:

    When you transfered from IB to ESA you quallified for what is called a 'Transitional Addition' to make sure that you did not get any less money on ESA than you did on IB.

    It appears that in your case the amount payable with the TA is greater than the amount of IR ESA, so although you are now getting IR ESA your money hasn't gone up.
    (They pay the IR ESA but then reduce the TA by the same amount, leaving you still with the same money overall).

    So you do have IR ESA as well as CB ESA, and so the free healthcare, etc. that comes with IR ESA.

    Note- ALL IB-ESA Transitional Additions will end next year on 5 April 2020.
    This may not leave you any worse off, it will depend just how much TA is still being paid. (In some cases it's as low as 40p a week, which will be made up by next years ESA increases anyway).

    If you could let us know how much you currently get paid as ESA then we could work that out for you.

    As you have an entitlement to IR ESA then you can apply for a Budgeting Loan.
    You can apply on line or download a paper form and apply by post: https://www.gov.uk/budgeting-help-benefits/how-to-apply
    Thanks so much for helping. I didn’t want to waste my time applying if I didn’t qualify and the info I could find didn’t really give me an answer.
    I currently get £130.30 per week (paid fortnightly).
    I’m not sure how much the top is they give me to be honest. I’ve been on IB/ESA since 2002. I’ve been in receipt of DLA/PIP since 2004.

  4. #4
    Senior Member nukecad's Avatar
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    No problem, here is what I calculate regarding you Transitional Addition.

    Without the TA the ESA payable for someone in your situation is currently:

    £ 73.10 Personal Allowance (CB ESA)
    £ 38.55 Support Group component (CB ESA)
    £ 16.80 Enhanced Disability Premium (IR ESA)
    £128.45 Total ESA payable.

    So your current TA amount is £130.30 - £128.45 = £1.85

    That £1.85 will stop being paid as from 5th April 2020, but any increase in the stanadrd rates of ESA for 2020 will kick in at the same time.

    No one can say for sure what next years rises will be, (they usually announce them in November), but this years ESA rises for those in your circumstances were £1.30.
    You would expect next years rises to be bigger, especially if the benefit freeze ends as it should.
    So when the TA stops you should not lose much if anything and may, probably will, get your first increase in ESA since transfering from IB.

    PS. I assume that your son is an adult and lives with you?
    I ask because there is another disability premium which can be paid with IR ESA if you have DLA/PIP, but to get that you must be classed as living alone, and no one must be claiming CA for looking after you.
    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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    Quote Originally Posted by Star1475 View Post
    Thanks so much for helping. I didn’t want to waste my time applying if I didn’t qualify and the info I could find didn’t really give me an answer.
    I currently get £130.30 per week (paid fortnightly).
    I’m not sure how much the top is they give me to be honest. I’ve been on IB/ESA since 2002. I’ve been in receipt of DLA/PIP since 2004.
    Thank you so much for the information. It’s a massive weight off my mind. My son is and adult yes, he gets carers allowance for me. I have a 16 year old daughter also. My son has just been signed off sick himself, he has ptsd after a robbery and assault. So my daughter will be helping me with the things he can’t do. Thanks so much again

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