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Better off on UC rather than old style ESA (C+IR)?
Hi all,
Trying to work out whether my client is better off moving over to UC. She is currently getting ESA(C) with IR top up and support group. Lost her SDP over a month ago when PIP stopped. She doesn’t think she fulfills the PIP criteria anymore.
She is doing some permitted work when she can - self-employed work, averaged over a year period due to fluctuations. Her work can be very short term (i.e. 1 day) but highly paid.
If she moves over to UC now, she will get higher monthly payments on UC than if on ESA assuming her LCWRA will be transferred (though of course there is always the risk she could be re-assessed) but I need to be clear on how earnings are assessed and what the impact may be on her UC claim, as she may be better off sticking with permitted work as an annual average.
Looking at p.1015-16 CPAG. Says you loose the LCRWA if your earnings exceed £604.58 per month unless you have already been assessed as having limited capability for work under the UC system or getting PIP - neither apply in her case. So the £604 threshold applies.
But comes to how this is assessed in practise, is the £604 threshold applied after the Work Allowance and then the taper? The WA is £512 in her case as she has no housing costs.
i.e. would it work like this:
total UC amount: standard allowance + LCWRA: £ 752 per month
total SE earnings: £2500 profit
WA applied: leaves £1988
63% £1988 = £1252
£1252 well over the £604 threshold so LCWRA lost.
?
Sounds like she’s at high risk of nil entitlement under UC. I’d leave ESA put until migration takes place, there’s too much at stake. It sounds from her average earnings she’d maybe agree to err on the side of caution rather than gamble £6,000 annual income. Of course if she’s not getting PIP who knows if she could pass a WCA especially while actually earning. I’d say this is very high stakes.
Many thanks Greg, that’s what I thought.
Incidentally, forgot to mention, she reaches state pension age in April.
Many thanks Greg, that’s what I thought.
Incidentally, forgot to mention, she reaches state pension age in April.
I’d definitely advise to wait it out then. Even if UC were the better solution on paper it might take months to straighten it out! Once she’s SP age, AA should be worth a shot if she’s not going to miss the mobility part of PIP the most/need PIP before then…