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NI Credits when ESA “ended” due to occupational pension??

Peter Donohue
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Salford Welfare Rights

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Total Posts: 56

Joined: 11 November 2020

Hi all - looking for anyone with ideas, experience or views on (what must be) a common enough scenario….......just not one I have specifically come across myself.

clt (42) is presently on CBESA in SG (so has LCWRA) and has been for some years….should be no worries on remaining on that (famous last words!).

The issue is that he is due an occ pension after his employer of 20+ years has finally decided to end his employment on that basis…the Occ pension will be paid at around £350 a week so - using the 50% of anything over £85 a week rule - his Occ Pension exceeds his CB ESA effectively taking him off ESA…..as this will work out at a fair bit more than his weekly ESA…..... so far so “straightforward”..........

My question is he currently continues to obtain his NI class 1 stamp whilst on ESA but he will not receive ESA once his Occ Pension kicks in….....the rules on NI credits imply that he will continue to get them if he “meets the conditions as LCW/RA” ...but if payment of his ESA ceases due to the Occ Pension being paid, how does he maintain his NI credits and “prove” he continues to meet the LCW/RA conditions…....does the DWP put him in some equivalent “lobster-pot” where he has only “lost” his ESA for reasons other than health or work capability (financial in this case) or does he have to “make” a claim for a type of so-called “credits only” status???

He understandably (and properly) wishes to maintain his NI record for his future retirement pension entitlement etc….

I know that persons who - for example - “lose” their CBESA (or NSESA) simply as a result of having their ESA limited to 52 weeks (ie those who are LCW/WRAG but not in LCWRA/Support Group) continue to be treated as LCW for years after their actual ESA payment stops (I have seen numerous examples of people receiving DWP letters confirming this).....but is this the same for my scenario?............does anyone have a clue in practice please??

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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To the best of my knowledge it’s the same. He has been found to have LCWRA and is entitled to continue to receive NI credits on that basis until such time as he is reassessed as not having LCW or LCWRA.

I admit I have no knowledge of how DWP interact with people in this situation. As they are not actually claimants I can’t imagine they are a priority for reassessment.

Peter Donohue
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Salford Welfare Rights

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Joined: 11 November 2020

Many thanks Ianb,

As I suggested yesterday this kind of situation must happen all the time as workers on long term sickness at work eventually move from SSP to ESA and eventually to Occ Pension when it is decided their employment should end…....similarly those who are placed into WRAG and stop receiving ESA at all after 52 weeks must be in their thousands.

After asking around and trying a few avenues of enquiry, I am surprised (not least with my own lack of knowledge and experience of this) that no-one seems to be able to explain what practically happens other than (as you also seem to suggest) they appear to be “left alone”, they seem to remain unassessed and (in the case of those putatively remaining as LCW/WRAG beyond the 52 weeks) they are also it seems not actively followed up in terms of any WRA???

SanC
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Heart of Kent Hospice

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Hi Peter

One of my patients has been on ESA / Support Group, ‘Credits Only’ due to their pension for a number of years.

They receive an annual letter asking if their gross pension income has changed, and that’s it !

Peter Donohue
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Salford Welfare Rights

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that is helpful to know thanks ....is the letter they receive from DWP or from HMRC/NIC?

SanC
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Heart of Kent Hospice

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haven’t physically seen the letter, but they described the letter as ’ ESA are asking about my pension’ - so guessing it’s from DWP