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ESA and Income Protection

scotsguyscotsguy Posts: 6Member Listener
Hi

I'm so confused right now and stressed. Last year I was put on ESA contributions based then changed to income based.

It was stopped because I was told I was working.
I sent my wage slips that showed that this is income protection and not a wage. The policy was between my work and them. I get 66% of my salary less ESA.
So it was restarted again contribution and Income.

Now a team has phoned me and said it's stopping again.

The problem I have. I don't know who is right. I read various stories saying they get Income and Cont ESA and others that don't. 

They quoted regulation 104. The insurance company advised me that I should still get ESA Contributions and Income as they cannot regard the IPI payment as income.

I'm totally lost. 3 different answers of helpline.
Sorry for ranting.

Any advice?

Replies

  • BenefitsTrainingCoBenefitsTrainingCo Posts: 2,679Member Pioneering
    Hi there, 
    As far as I can tell, the answer to this depends on whether the IPI payment counts as 'permanent health insurance'. If it does, then according to Disability Rights UK, then if it pays more than £85 a week, then your contributory ESA payment is reduced by half the amount over this limit. However, the income based part of your ESA will be affected pound for pound by this IPI payment. 
    It may be best to request a full written decision that refers to which regulations they are using, and you can then ask for a mandatory reconsideration of the decision if you think they're wrong. While you're waiting for the decision, call the Scope helpline to try and get the contact details of any local advice agency which may be able to help you sort this out.
    It might be best to insist on a written explanation for their decision, rather than keep getting inconsistent replies from the helpline, as this is not a straightforward case! Good luck, and I hope this helps. My colleagues from the Benefits Training Company may also have opinions on this.....

    Jayne
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • scotsguyscotsguy Posts: 6Member Listener
    Hi 

    Many thanks. I did contact my local agencies CAB. Local office and central helpline and they also give me two different answers. But thank you 
  • gnmeadsgnmeads Posts: 185Member Pioneering
  • scotsguyscotsguy Posts: 6Member Listener
  • BenefitsTrainingCoBenefitsTrainingCo Posts: 2,679Member Pioneering
    Hi scotsguy,

    I agree with my colleague. Health insurance payments can affect contributory ESA and income-related ESA. A permanent health insurance policy arranged by your previous employer which provides payments because of your ill health or disability after your employment ends would definitely affect your benefit. 

    It affects contributory ESA as my colleague describes. Another thing to bear in mind is that unless you are in the support group, contributory ESA lasts for 52 weeks. 
    As my colleague explains, the income from the health insurance, if it does count as that, is taken into account in full for income-related ESA. Regulation 104 of the ESA regs is simply the regs which states that income other than earnings is taken into account. 

    I think Jayne's suggestion that you get a written explanation is a good one, as you should then be able to see exactly what is going on, particularly if you are still getting both types of ESA.

    Will
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • scotsguyscotsguy Posts: 6Member Listener
    Hi.  I'm still employed. My employer gets the payment from insurance company then I pay tax etc and I'm in a support group.

    I was just advised that IPI is classed as pensionable income and as I'm still employed it cannot be taken into consideration.

    I will take your advice and get it writing. However I have spoken to a few people in DWP and I get different opinions. So I'm still lost. 

    I do appreciate all the advice :)
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