Understanding: UC and Contributory Benefits

How it Works: UC and Contributory Benefits

BELOW KEY FACTS:

• Universal Credit is NOT replacing any of the contributory benefits.
• The contributory benefits can still be claimed - although some people may be wrongly advised by the DWP that Contribution-Based JSA and Contributory ESA no longer exist.
• The confusion has arisen because there are quite confusing rules:
• For claimants living in a Full / Digital UC service area making a new claim based on NI contributions - Contribution-Based JSA is called New-Style JSA, and Contributory ESA is called New-Style ESA and can be 'topped up' by Universal Credit.
• For claimants living in a Live / Gateway area making a new claim based on NI contributions - they remain on Contribution-Based JSA and Contributory ESA and can be topped up by Income-Based JSA and Income-Related ESA respectively.
• However, before new claims in the Live / Gateway areas were closed in January 2018, those claimants who passed the UC 'Gateway conditions' - whether or not claiming UC at the same time - were awarded New-Style JSA and are therefore classed as coming under the UC system and if they require a top-up would need to claim UC.
• In certain circumstances, claimants who finish work but already have existing awards of legacy benefits (eg. HB, CTC) who live in a Full / Digital UC service area, might be better off if they choose to just claim their contributory benefits and stay on their existing legacy benefits without also claiming Universal Credit.
• Although, for those living in a Full / Digital UC service area, it can be difficult, in practical terms, to make a claim for New-Style JSA/ESA without claiming Universal Credit at the same time.
• All the other contributory benefits are unaffected by the introduction of Universal Credit.
• Anyone who meets the claiming criteria for a contributory benefit can claim it - even in living in a Full / Digital UC area and even if the claimant is already on Universal Credit.
• Receiving a contributory benefit will affect the amount of Universal Credit the claimant is entitled