ESA and underlying Carers Allowance

Have customer who has been on IB for many years and also Carers Allowance (underlying) so her son qualifies for the SDP in his ESA award.  Mother has migrated over to ESA (WRAG) which will be paid for 365 days, CA continues to be underlying.  After the 365 days, ESA stops and Carers Allowance should start to be paid which will result in the son losing his SDP.  Or it should, in my case the department hasn’t picked this up so a potential overpayment looms.  Very difficult for families to understand and cope with cuts in incomes.

sanwyp - 03 March 2013 08:20 PM

..After the 365 days, ESA stops..

If ESA actually stopped, ie she wasn’t entitled to income-related ESA, she could wait 12 weeks and a day and apply for contributory ESA which she should be entitled to.  That would potentially reduce the overpayment as the CA would become underlying again from that point.  If they have not yet paid the CA, the son is arguably still legally entitled to the SDP (the SDP is usually only lost once CA starts being paid) - see para 6(6) of Sch4 to the ESA Regs. 

She’d requalify for contributory ESA due to Reg 8(1) & (2)(a) ESA Regs.  By waiting 12 weeks and a day her new contributory ESA claim would be dealt with under the ESA Regs rather than the conversion regs.

In the case I have customer was found fit and is appealing decision and in the meantime is getting IS which includes Disability Premium, SDP (as she has DLA MRC) and the Carer’s Premium so no change in overall benefit income, but the CA is not back in payment, plus (just to make it more complicated) the son’s ESA did not have the SDP included, he has DLA MRC and lives alone, I will of course be asking DWP to correct this, and then they need to decide if mother continues to be carer with CP or she gives it up and son retains his SDP. Thank you for your extremely useful information on reclaiming after 12 weeks and 1 day sure I will have need to consider this at some point as lots of problems arising with migration.