Frequently Asked Questions

Please select from one of the following groups or use the search facility

How do I treat Employment Support Allowance (ESA)?

Income-related ESA replaced Income Support on grounds of ill-health for new claimants from October 2008. It is a means-tested benefit and thus receipt passports the client to 100% grant.

Contributory ESA replaced Incapacity Benefit for new claimants from October 2008. It is paid if the client meets NI contribution conditions. It is treated as income for DFG purposes.

Existing claimants of Income Support on grounds of ill-health and Incapacity Benefit are to be "migrated" to ESA in 2013.

The rates of both the contributory and means-tested forms are identical, so it is often difficult to determine if the ESA is income-related or contributory. Useful pointers are:

• the letter of award; a letter for Contributory ESA will refer to contributions.
• receipt of income-related ESA may passport the client to CTR and/or HB.

Receipt of "main phase" ESA entitles the applicant to a disability premium in the means-test calculation. Initially ESA claimants are in the "assessment phase". They enter the "main phase" after a medical assessment that awards them either the "work-related activity component" or the "support component".

Receipt of the "support component" entitles the applicant to an enhanced disability premium in the means-test calculation (provided that s/he and any partner are under 60).

For further help in identifying which form of ESA is in receipt, please see Employment and Support Allowance (ESA) - contributory or income-related?