This post was updated on 6 May 2022 to include current benefit rates
Hello Mike
My clients Hannah and Hietor are in a catch-22 situation.
They have tried to claim Universal Credit but can’t get it because of Hietor’s wage.
Hannah is ill and hasn’t worked for several years. She gets high rate of both parts of PIP.
If Hannah had a Work Capability Assessment that would change the deal on their Universal Credit, and they might then qualify.
But she has been told that she can’t have a Work Capability Assessment unless she has a claim for UC; but she can’t qualify for UC until she has had the Work Capability Assessment.
We’re going round in circles!
How do we get out of this?
Thank you
Ruby
Hiya Ruby,
How the WCA helps
You are absolutely right to say that having a Work Capability Assessment will make it more likely that Hannah and Hietor qualify for UC.
If the WCA decides that Hannah has Limited Capability for Work, they will be allowed a Work Allowance of £344 per month.
This means that £344 of Hietor’s wage will be ignored when UC does the what-you’ve-got-what-you-need* calculation, which might bring them into UC.
If the WCA decides that Hannah has a high-grade condition and she has Limited Capability for Work Related Activity, they will be allowed an extra LCWRA element of £354.28 per month in the Universal Credit needs-level*
How to get out of the catch 22
Hannah should make a new claim for new-style, contributory ESA.
Part of the deal with new-style ESA is that as well as cash payments, you get National Insurance Credits to protect your eventual right to state pension.
We know that Hannah won’t qualify for cash payments of ESA, because she has not paid contributions into the system in the last few years.
But she can still have a live ESA claim, known as a credits-only-claim.
And as part of the ESA claim she will have to go through the Work Capability Assessment.
Bingo! Catch 22 solved!
But what about the fact that they are missing out right now?
Hannah and Hietor should also make a new claim for Universal Credit. Right now.
We know that they will not qualify because of Hietor’s wage.
But the point of claiming now is to put down a marker.
Once the Work Capability Assessment has been completed H&H will be able to ask the DWP to revise the decision refusing UC and to back-pay their entitlement.
Is Hietor caring for Hannah?
If Hietor cares for Hannah for 35+ hours each week, they should mention this when they make their claim for UC.
UC will then allow an extra Carer Element of £168.81 in to the award.
What’s with the asterisks?
Universal Credit works by balancing your existing income against a hypothetical figure for what you need to live on each month.
The needs-level is legally called a maximum amount.
When working out your income, wages get a special deal.