ESA credits and UC

If someone receives ESA and their claim then ends (for reasons other than being found fit for work) they can continue to receive NI Class 1 credits due to LCW or LCWRA. This is usually referred to as an ESA credits only award even though that is technically incorrect because it’s not an ESA award. I think this comes from the SS (Credits) Regs 1975.

If someone on UC with LCW or LCWRA has their UC claim stop (perhaps due to an inheritance or becoming part of a couple with a well paid partner) there appears not to be be any similar provision to continue to get NI credits.

As I understand it, a claimant who cannot meet the ESA qualifying NI requirements (and therefore cannot be paid ESA) is excluded from applying for new style ESA in order to get Class 1 NI credits if they are already receiving UC (which of course only provides Class 3).

If a claimant with a closed UC claim therefore wants to get NI credits they would have to apply for new style ESA after the UC award has ended. However, because they would no longer be in receipt of UC, the LCW/LCWRA determined under UC would not, as I read it, transfer across to the ESA. If correct this means that a new WCA would be required.

Am I missing something.?

That’s pretty much it.

If you are LCW, then you can claim your class 1 credits under reg 8B Social Security (Credits) Regulations 1975 whether or not you qualify for ESA. However, you don’t get those credits if you are on UC unless you also get nsESA (reg 8B(2A)) and therefore you only get your UC class 3 credits under reg 8G.

If you get dumped from UC for whatever reason, you can claim your class 1 credits again by the workaround of claiming nsESA. You would need to go through an assessment phase again. It’s possible that the DWP would just copy and paste your previous WCA outcome rather than assessing you from scratch though.

Thanks Elliot. I thought I’d check in case I’d overlooked something.