ESA time limiting

I think I’m missing something her and can’t think of a better way to get set straight than to post on here.

I’ve been having a bit of a look at the Welfare Reform Bill and the bit covering the dreaded 12 month time limit for CESA in particular. s51 sets out the rules for the new limit with a new section1A in the WRA

Subsection 1 says you can be entitled for no more than 365 days by reference to the same two tax years for the second condition

Subsection 2 says you don’t get tripped up by sub (1) if:

a)  you satisfy the contribution conditions then.
b)  The two years used for reference for the second condition (which can be met by credits) include at least one tax year which is later than the last time you qualified.

Subsection 3 says the clock is ticking from before the new bit comes into force and doesn’t tick when you are in the support group

It seems to me that lots of people would simply be able to claim again for a second year or more.

Say you worked full time paying your stamps for the tax years 08-09 and 09-10 and 10-11 before claiming ESA in June 2011 and getting put in the WRAG. Come June 2012 your 365 days will be up but you will the meet the first condition in both 09-10 and 10-11 and you would also meet the second condition on the 09-10 and 10-11. The reference years include a later one (10-11) than the last time so subs 2 is satisfied. So you can have another year. Come June 2013 you could meet the first condition in 10-11 and the second condition in the last 2 tax years (including credits for LCW). 2014 might look like it is going to be a bad year but the concession in reg 8 of the ESA regs would help you through the first condition if you had a short spell of being a bit fitter so as to have a new period of LCW and the LCW credits would get you through the second condition.

I’m sure I’ve missed something so if someone could point out what it is I’d appreciate it !

It’s basically the same system as for jobseeker’s allowance (or before that unemployment benefit) which has always been time limited and allowed a new claim if you break long enough for a reclaim not to link and can use at least one different tax year. Or so I assume.

Ah thats it! The two years are by reference to the benefit year in which the period of LCW started so it is only by breaking the LCW long enough that you can requalify.

Silly question time (again) but ive been trawling around looking for an answer to the new Contribution Based Employment and Support Allowance rules. I’m probably being a bit dim here so any help would be appreciated.
I understand that the 12 month CESA claim limit comes into force April 2012.
Is this for new claims only from then or do existing CESA or LTIB clients have some form of transitional protection from this?
Will this create a 2 tier ESA system? Do i need to go and lie down?

See here:

http://www.rightsnet.org.uk/?ACT=39&fid=3&aid=88_Hcbxdv58wF3NywUTzcUL&board_id=1

No transitional protection. Everyone (bar support group) loses their entire CESA award at the 12 month point - in April 2012 if they have already been on CESA 12 months by then. Transition cases lose CESA 12 months after their transition is complete and their ESA award begins.

There was some discussion about timing in the Committee stage debates on this so there could perhaps be some tweaking but not a lot.

Richard Atkinson

Thanks Richard. looks like more people with disabilities will be forced into further poverty due to this.