Employment and Support Allowance
[ch 3: pages 25-26]If an employee or worker has a health condition or disability that limits their ability to work, but is ineligible for SSP, they may be able to claim Employment and Support Allowance (ESA). They could also apply for New Style ESA if they were not able to work while self-isolating because of Covid-19.
An employee who is, or becomes, ineligible for SSP should be issued a form SSP1 by their employer, to support their application for benefits. It should be issued within seven days of their SSP ending, if it ends unexpectedly while they’re still sick; on or before the beginning of the 23rd week, if their SSP is expected to end before their sickness does.
There are two types of ESA, earnings-related ESA which is being replaced by Universal Credit; and New Style ESA which is contributory (National Insurance-related) and can be claimed on its own or at the same time as Universal Credit, depending on the circumstances.
New Style ESA is a contributory (National Insurance-related) fortnightly payment that can be claimed on its own or at the same time as Universal Credit (UC), depending on the circumstances. If both benefits are paid, Universal Credit is reduced by the amount received for New Style ESA. Eligibility for UC as well as ESA may depend on whether the claimant and their partner have savings of more or less than £16,000.