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Credits Only awards for LCW - evidence required and duration of award
Apologies if these questions have been asked and answered already - if so, a pointer to them would be gratefully received.
We have 2 separate cases where clients have made a claim for NS ESA but did not meet the NI contribution conditions. Both have been assessed as having LCW automatically, without having to complete a questionnaire (possibly because of cancer diagnosis, radiotherapy pending, etc), and each has a “Credits Only” award for LCW. We’ve not been able to have sight of any letters and clients cannot give us any further information about the content. We cannot find confirmation of how long the Credits last, either in correspondence from DWP or in our reference sources.
1. One of the clients is being asked to submit Fit Notes, which he is doing. Is it usual practice that he will need to submit Fit Notes indefinitely, for the NI credits to continue? Or is there a point when a WCA is carried out and Fit Notes are no longer required?
2. How long should the NI “Credits Only” award last? As the basis for the credits is LCW and there has been no assessment for LCWRA, we are wondering if it will be only up to 365 days, as with LCW in a NS ESA award. Or does it continue after 365 days, provided that evidence is submitted that the client still has LCW? We have looked at SS(Credit)Regs 1975 8B (2)(a)(iv) https://www.legislation.gov.uk/uksi/1975/556/regulation/8B and have not found anything to state that the award will stop while the client has LCW, but are concerned we may have missed something.
Would be grateful for pointers to anything more conclusive than what we have found so far. Many thanks.
(As an aside,for general info, one of the ESA claims is being held open, pending client making voluntary C2s for a few weeks to complete one of the relevant years. Have not come across this before).
The fit notes should only be necessary whilst your client is in the nominal assessment phase before a WCA has been conducted. The assessment phase still needs to be completed even if the nature of the issues are such that LCW is obvious.
The credits will be paid indefinitely for as long as your client has LCW. Only contributory ESA (old or new style) is subject to time limiting.
Many thanks, Elliot.
If someone was on cbESA with the support component but starts work, ending the claim, do the credits for LCWRA continue? Cl has stayed in the work for several months but has now left again due to ill health and claimed UC. Will the credits for LCWRA have continued enabling the LCWRA element to be included from the start of the claim?
Do the credits continue until a new WCA is carried out?
If someone was on cbESA with the support component but starts work, ending the claim, do the credits for LCWRA continue? Cl has stayed in the work for several months but has now left again due to ill health and claimed UC. Will the credits for LCWRA have continued enabling the LCWRA element to be included from the start of the claim?
Do the credits continue until a new WCA is carried out?
Assuming the ESA ended because over PW limits then they would have been making, or treated as making, NI contributions through work.
The ‘ESA’ credits are given for having LCW. If they were in work they no longer had LCW so would no longer get them on that basis.
They will not be entitled to LCWRA from outset and will need a new WCA.
The only case when I think you could get round this would be if the period of work was less than 12 weeks in which case a new ESA claim could be made and the ESA ‘linking’ rules could place claimant straight back into Support Group which, if UC was claimed also, would entitle them to LCWRA element.
Thanks Ianb, that’s what I thought- however I’ve just had another client whose income-related ESA with the support component stopped because of an inheritance of his wife’s. He has since divorced and has worked in the interim but his UC claim has included the LCWRA element from the start..
The difference is that having capital doesn’t impact on entitlement to LCW credits. It is being in receipt of the credits which result in the LCWRA element being included from the start of the claim - see reg 21 UC(TP) Regs.
Thanks Ianb, that’s what I thought- however I’ve just had another client whose income-related ESA with the support component stopped because of an inheritance of his wife’s. He has since divorced and has worked in the interim but his UC claim has included the LCWRA element from the start..
In that situation they continue to get credits because they are not getting them through work and still have LCW.
The difference is that having capital doesn’t impact on entitlement to LCW credits. It is being in receipt of the credits which result in the LCWRA element being included from the start of the claim - see reg 21 UC(TP) Regs.
Recently had one of these - not only was the LCWRA element added from the start of the claim, so was the SDP transitional element. Which can’t be right.