Employment and Support Allowance (ESA) — Who Can Apply & How It Differs from UC

Employment and Support Allowance (ESA) provides financial support and work-related assistance to individuals who have an illness, injury, or disability that affects their capability to work. Today, new claims are made for "New Style ESA," which is a contribution-based benefit. It replaced older income-related versions of ESA, which have now been subsumed into Universal Credit.

Who Can Apply for New Style ESA To qualify for New Style ESA, you must meet criteria based on your health condition and National Insurance record:

• National Insurance Record: You must have worked as an employee or self-employed worker and paid or been credited with sufficient Class 1 or Class 2 National Insurance contributions in the last two full tax years before the benefit year in which you claim.
• Age: You must be under State Pension age and aged 16 or over.
• Statutory Sick Pay (SSP): You cannot receive New Style ESA at the same time as Statutory Sick Pay. However, you can apply up to three months before your SSP ends so that payments begin promptly.
• Work Status: You must not be working, or be working under "permitted work" rules (earning under £183.50 per week for fewer than 16 hours per week).

New Style ESA Payment Rates for 2026/27 New Style ESA is paid every two weeks into your bank account. Payment amounts depend on the stage of your claim and your assessment outcome.

1. Assessment Phase (First 13 Weeks) While your claim is being evaluated and you are submitting medical fit notes from your GP, you receive the basic assessment rate:

• Aged under 25: up to £75.65 per week
• Aged 25 or over: up to £95.55 per week

2. Main Phase (After Work Capability Assessment) Once your Work Capability Assessment is completed, you are assigned to one of two groups:

• Work-Related Activity Group: You receive up to £95.55 per week. You are expected to attend regular meetings with an adviser and participate in activities to help you prepare for a future return to work.
• Support Group: You receive up to £148.10 per week (combining the £95.55 basic rate with a £52.55 support component). You have severe functional limitations and are not required to undertake any work preparation activities.

How New Style ESA Differs from Universal Credit Understanding how New Style ESA differs from Universal Credit is essential when choosing how to claim:

1. Savings and Household Income New Style ESA is entirely contribution-based and non-means-tested. Your savings, investments, and partner's earnings have zero impact on your eligibility or payment amount. Universal Credit, by contrast, reduces if you have savings over £6,000 and stops completely if savings exceed £16,000.

2. Pension Income While savings are ignored for ESA, if you receive a private or occupational pension over £85 per week, your weekly ESA payment is reduced by 50p for every £1 of pension income above £85.

3. National Insurance Credits Receiving New Style ESA awards you Class 1 National Insurance credits, which help build entitlement to the State Pension and future contribution-based benefits. Universal Credit awards Class 3 NI credits, which count towards State Pension but not towards certain contribution-based benefits.

4. Claiming ESA and Universal Credit Together You can claim New Style ESA and Universal Credit at the same time if you qualify for both. When claimed together, your New Style ESA amount is deducted £1-for-£1 from your Universal Credit monthly award. However, claiming both allows you to secure Class 1 National Insurance credits while accessing housing or child support through Universal Credit.

How to Apply You can apply online via the GOV.UK New Style ESA application page or by calling the DWP contact centre. You will need your National Insurance number, medical fit notes from your GP, and details of your National Insurance contribution history. For further guidance on eligibility and dual claims, visit Citizens Advice ESA guidance.