Impact of the Welfare Reform Act 2012 on ESA

The Welfare Reform Act 2012 limited the amount of time people who are not in the Support Group can claim contribution-based ESA to up to one year without having to requalify. The Act also removed the special contribution conditions that allowed people aged between 16 and 20 (or under 25 if in education or training at least three months immediately before turning 20) to receive contribution-based ESA without paying National Insurance contributions.

In addition, previously when a claimant left ESA and started work or training within one month, their benefit would have been reinstated at the same rate as previously paid, if they returned to ESA within 104 weeks. However, to coincide with the changes brought by time-limiting contribution-based ESA, the 104-week linking rule was abolished by separate regulations. This means if you want to claim ESA and it is more than 12 weeks since your award of ESA ended, your claim will not link to your earlier award.