The Department for Work and Pensions (DWP) is providing increased financial support to individuals who are out of work due to a disability or long-term health condition, aiming to ease the financial strain on some of the most vulnerable groups in society.
The benefit, known as Employment and Support Allowance (ESA), can provide up to £552 per month, offering a crucial lifeline to those struggling with living costs and ensuring they can still contribute towards their state pension.
According to Manchester Evening News, the government has also confirmed that individuals undergoing the assessment period may be eligible for backdated payments if it is determined they were entitled to a higher amount after the 13-week evaluation phase.
While ESA is not a new scheme, its role in supplementing financial security and filling gaps in National Insurance contributions continues to be a critical aspect of long-term welfare support.
Who Is Eligible for ESA ?
ESA is designed for individuals who are unable to work due to health-related issues. There are two types of ESA : New Style ESA, which is available for new applicants who meet the eligibility criteria, and income-related ESA, which is no longer open for new claims but continues to be provided to those who had already qualified before the change.
To qualify, applicants must undergo an assessment period lasting up to 13 weeks, during which they receive an initial payment based on their age. Those under 25 years old receive £71.70 per week, while those aged 25 and over receive £90.50 per week.
This assessment rate continues if the application process takes longer than 13 weeks, with any due increase being backdated once the assessment is completed.
Once assessed, claimants are placed into one of two groups. Those in the work-related activity group continue to receive £90.50 per week, while those placed in the support group, which includes individuals with more severe conditions, receive £138.20 per week, equating to £552.80 per month.
How ESA Can Help With State Pension Contributions
The UK state pension is based on National Insurance (NI) contributions, with the full basic state pension requiring 30 years of contributions and the new state pension requiring 35 years. Those unable to work due to a health condition or disability risk falling short of these contributions.
However, ESA provides Class 1 NI credits, which help fill these gaps, ensuring individuals can still qualify for the state pension when they reach retirement age.
A DWP spokesperson highlighted the impact of ESA on pension eligibility :
Missing some of these contributions could mean you won’t get as much in state pension payments. However, ESA can help plug the gap.
Impact on Other Benefits and Pensions
Claiming ESA may affect private pension payments. If a claimant receives more than £85 per week from a private pension, DWP applies a deduction, reducing ESA payments by half of the excess amount.
In some cases, this reduction may be significant enough that the individual only receives National Insurance credits instead of direct ESA payments.
DWP allows ESA to be claimed alongside Universal Credit, though any ESA payments received may be deducted from the total Universal Credit amount.
Additionally, those with long-term health conditions or disabilities may qualify for Personal Independence Payment (PIP) to supplement their income.
