Income Support / ESA / IB Credits

Hi,
My Service User was on Incapacity Credits for many years. She made a claim for Income Support on the basis of incapacity on 23/11/10 (I did advise she wont qualify on income grounds-rental income from a property on the market- but she applied anyway). She was sent an ESA form as DWP system was down. I advised this was the wrong form, so she printed off an IS form from the internet, completed it and returned it with an explanation.  She was sent for a medical and has recieved a decision yesterday that she has failed the Limited Capability for Work assessment. 

However her tenant is moving out end of July 2011, at which time she will have nil income.  Had the claim in Nov 2010/decision yesterday not been made, I would have tried to argue she should claim IS under Reg 2(2)(d)  and 2(3) ESA (Transitional) Regs 2008.

Does ‘entitled to Incapacity Benefit’ in reg 2(2)(d) cover incapacity credits also?
Should she put in a new claim for Income Support?
What do I do about the ESA decision and the fact her IB credits have stopped?

We’ve had a number of enquiries about this.  NI credits are awarded under different legislation than IB/SDA awards as defined in the ESA transitional provisions.  As such, an IB credits award will mean that a new claim for means tested benefit on the basis of sickness/disability should be treated as a claim for ESA not IS.

So the option will be to appeal the ESA decision and be awarded asessment rate pending appeal (depending on income).