Money Wellness
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calendar icon24 Oct 2024

Benefits error means ESA claimants ‘missing out’ when moving to universal credit

Hundreds of employment and support allowance (ESA) claimants risk being left out of pocket after a benefits error by the Department for Work and Pensions (DWP).

This comes as the government aims to move two million people from legacy benefits to universal credit (UC) by March 2025.

What’s ESA?

ESA helps those who can’t work due to illness or disability.

Like UC, ESA is made up of a standard allowance plus an additional component, depending on which group you’re put in:

  • work-related activity – you can’t work at the moment but you can prepare to work in the future
  • support – you can’t work now and aren’t expected to look for work

When you move from ESA to UC, your additional component will be replaced with a limited capability for work and work-related activity (LCWRA) payment.

But some of the 800,000 people getting ESA have hit a snag when moving to universal credit.

Wrongly asked for fit notes and work

Under DWP’s rules, ESA claimants don’t have to provide fit notes when migrating, and those in the support group shouldn’t be asked to take on new work activities.

If you were already getting the ESA additional component, you don’t need to send in a fit note or agree any new work requirements to be eligible for LCWRA payments.

But some people have wrongly been asked for fit notes or to prepare for work, meaning they could lose their LCWRA.

These vital payments can be up to £416 a month.

DWP said they’re aware of the problem which is affecting “a small number of claimants”.

A spokesperson said: "Anyone who thinks they have been affected should contact their work coach."

Moving to UC?

If you're receiving legacy benefits, keep an eye out for your migration notice in the post.

This letter has important details and instructions on how to switch to universal credit.

Nearly 1.14 million migration notices have been sent out since July 2022.

Remember, the change isn’t automatic, so you need to apply within three months of getting your notice.

Missing the deadline means not only losing your payments but also extra support during the transition.

Have you been affected by the error?

If the mistake has left you out of pocket, speak to your work coach and check out our guide about dealing with common universal credit problems.

If you’re moving to universal credit soon, it’s a good idea to check you’re still getting everything you’re entitled to.

There might be some other benefits you’re eligible for, so use our free benefits calculator to make sure you’re not missing out.

Avatar of Michelle Kight

Michelle Kight

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

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