New style (contributions) ESA

[MissMogs]

Has anyone seen what’s happening with this? All the news is on PIP and UC, but originally they were changing this too?

As far as I know they were planning to change new style ESA (contribution based) to time limit it. Not sure how it works because I can’t find the actual proposals, but I think the plans will go ahead if the vote next week passes the bill, as they’ve only rowed back on the PIP changes and the knock on effects to UC.

Edited to provide this info from DWP. The main change to "new style" Employment and Support Allowance (ESA) is that it will be merged with "new style" Jobseeker's Allowance (JSA) into a single, time-limited, contributory "unemployment insurance" benefit, tentatively scheduled for 2028/29. This new benefit will be paid at the same rate as the current ESA support component and will require claimants to actively seek work, though limitations may be placed on this requirement for those with disabilities or health conditions.

Hope that helps. The only information I can’t find is how long it’s time limited to.

Thanks! I’d seen similar but there’s literally nothing about it in the news and updates so I wasn’t sure if it was even in the Bill or not!

The Bill includes the whole package of proposed reforms as far as I can tell. Only the proposed PIP change to the four point rule has been changed - and that’s only for existing claimants. It will apply for all new claimants and the government hasn’t defined ‘existing claimants’ so it’s not clear whether the change will apply when those claimants come to the review date for their claim, or if they report a change in circumstances.

The changes to UC LCWRA will still apply, but again only for new claimants, so existing claimants will get a higher amount than those making new claims. And there are proposals to scrap the work capability assessment and use the PIP assessment to determine capability for work - not sure how that’s going to work because PIP doesn’t assess work capability so presumably there will be some changes to the assessment at some point. I’m not actually sure whether that’s included in the Bill or whether it will be part of wider reforms to come later.

I think the reforms to new style ESA have been proposed because it’s a contribution based benefit and is currently paid indefinitely while the claimant continues to satisfy eligibility. It also disregards family income - only reducing benefit if the claimant themselves have any other unearned income over a certain threshold. In some cases current legacy sickness benefit claimants migrated to ESA have all income disregarded. It’s easy to see why it’s been targeted because theoretically those claiming the support group element of the benefit can be on it for long periods, and the aim is to stop this from happening.

The replacement ‘unemployment insurance benefit’ is intended to be paid at a higher rate than new style ESA - a figure of around £7,500 PA has been mooted but the difference will be that it’s time limited - probably 6-12 months, but the government hasn’t yet made a final decision. It will be contribution based - as with contributory ESA, dependent on your last two years contributions. It’s not means tested and can be paid alongside benefits like PIP. When the time limit ends claimants will need to claim UC or other means tested benefits, as unlike contributory ESA there will be no support group for the more severely disabled to continue the claim indefinitely. Hope that helps to clarify a bit more - obviously the devil is in the details and we won’t know much more about timescales for implementation until the autumn statement.

Thank you that’s really helpful. Concerning though for people in the support group who have been assessed as unable to work entirely who will no longer get any support after 6 months!