Help. I have a client who will be 16 next month and so able to claim in his own right. He is on High rate care and High rate mobility, but is on more than 21 hours a week supervised education (so no IB(Y)), although his education is reduced to 4 days a week and he has homework on the 5th day. He is not terminally ill.

At the moment his parents get CTC/CB for him at £92 per week, and he could only claim IS at £86.50 per week so AT THE MOMENT it is financially advantageous for the family for his parents to continue to get CTC/CB. That is where it stops making sense to me.

Assuming that their CTC entitlement doesn't reduce this year (we are assuming it will for 2009-10) then we are looking at an ESA claim from April or September 2009. He intends to continue in (probably reduced) mainstream education in Sept. 2009.

On this year's figures for ESA, I reckon that he would get £47.95 for the first 13 weeks and then would be in the support group and so would get the extra £29. He would still be entitled to the enhanced disability premium (I think) so would be entitled to £89.55 after the 13 weeks. That would be an equivalent of IB (Y), non contributory.

Have I got that right? I am suffering from terminal confusion on this one.

And if I have - if he worked a few hours each week as well as being in post 16 education - then he would be ok for a year on "permitted work" and that income wouldn't make a difference as long as under £88.50 per week (this years figure).

And if I haven't - please can someone put me right on this one? Thanks.

Hi Juliem

Because your client gets DLA HRC he should get an enhanced disability premium from day 1 - hence £60.55 pw ESA (£47.95 + £12.60) in first 13 weeks. After that it would be £102.10 if he fell into the support group i.e £60.50 + £29 + £12.60. If he ends up in the work related activity group instead, then it will £97.10 pw.

Think you are right about the permitted work rules. As far as I am aware the governement intention is that this will apply to both contributory and income related ESA.

Derek

Thank you Derek.

The easiest solution from a WR point of view would be IS from next month, but it's good and surprising that he will get more under ESA after the first 13 weeks. He has muscular dystrophy which is deteriorating and so will fall into the support group.

Yes, I agree it's surprising. The reality is that many young people will get less in ESA than IBY. For instance anyone who falls into the employment group and who doesn't get high rate DLA will only get £84.50 pw long term ESA as opposed to £102.25 pw on long term IB.

The one group who look like they might be better off are young people in education who are caught by the 21 hour study rule. This is because payments of income related ESA are potentially higher than on IS (where the young person is either in the support group or on high rate DLA care).

However only those students on DLA can gain in this way. Students who have health problems and who do not get DLA will not be eligible to claim income related ESA at all ! (although they may still get contributory ESA as long as they can get around the 21 hour rule for 16-18 year olds).

Where a student is claiming IS but would be better off on ESA, I'm not aware of any mechanism that would allow them to opt to swop over onto ESA. Assuming this is right, someone in these circumstances would have to consider breaking their existing claim by coming off benefit for at least 8 weeks.

Derek