ESA/UC Change of Circumstances

My client currently receives ESA (with SDP and is in the support group) and also the enhanced rates of PIP.  Her brother has recently moved in with her and he gets UC and PIP.  My client has been advised that she needs to make a new claim for UC due to a change of circumstances and also that she would be better off (Carer’s Allowance was also mentioned but it is not clear if this has been included in the better off calculation).  My initial thought was that both her and her brother would simply need to notify ESA (and HB) of her change of circumstances due to the household change and that he would need to notify UC and she would not need to make a new claim for UC.  However, I cannot find anything to confirm this and unfortunately, my client has now made a new claim for UC with the support of an adviser before contacting me.  I believe my client is getting (c)ESA with additional (IR)ESA to allow her premiums to be paid, so I am assuming the UC claim may transfer this to new style ESA and then deducted.

I would be grateful for any advice please.

Dave

The existence of UC doesn’t generally impact on the administration of other benefits unless there is specific provision saying that it does. In this case, the brother moving in doesn’t impact on the client’s entitlement to ESA (although it may impact on her entitlement to the SDP, to which see below) so it would have been open to her just to leave things as they are.

The advice given to her would seem to be based on the fact that someone moving in with her will generally result in the loss of the SDP. Someone who has LCWRA but does not qualify for the SDP will generally be better off on UC because the LCWRA element of UC is higher than the support component and EDP of ESA combined. So, in general, it would be sensible for someone in this position to consider claiming UC to maximise their income.

However, the advice she has received does not appear to have taken into account the fact that the brother is receiving PIP.  Assuming that his award includes the daily living component, his presence would not actually result in the loss of the SDP. So the premise of the advice would appear to be wrong and it would have perhaps have been better for her to stay on her existing benefits.

Because your client has claimed UC now, there is nothing that can be done to reverse this. Her irESA and HB will cease and be replaced by UC. Her cESA will continue as nsESA and be deducted pound for pound from her UC. She should be entitled to the standard allowance, LCWRA element and housing costs element off the bat and should also receive the transitional SDP element of £132.12 per month. She should also be entitled to the additional transitional SDP element of £84 per month to account for her loss of the EDP from her first AP beginning on or after 14/02/24 - see https://www.rightsnet.org.uk/welfare-rights/news/item/increases-in-the-transitional-severe-disability-element-in-universal-credit-for-those-who-were-entitled-to-other-disability-premiums-prior-to-migrating.