What is the difference between new style ESA and income-related ESA?

Full answer

Employment and Support Allowance supports people whose health condition or disability limits their ability to work. There are two routes. New Style ESA is a contributory benefit: you qualify through your Class 1 (employee) or Class 2 (self-employed) National Insurance contributions over the relevant tax years. Because it is contribution-based, it ignores your savings and a partner's income, though it can be reduced by a personal or occupational pension above a set level and by earnings over a permitted-work limit. It is normally paid for up to 365 days if you are in the work-related activity group, or open-ended in the support group. Income-related ESA was the means-tested version, taking household income, capital and a partner's circumstances into account. It is part of the legacy benefit system being closed and replaced by Universal Credit, so it is essentially no longer available to new claimants - if you need means-tested help you claim Universal Credit instead. Many people claim New Style ESA and Universal Credit together: ESA gives you NI credits and a non-means-tested payment, while Universal Credit tops up based on need. The two stages of assessment are a Work Capability Assessment that places you in either the work-related activity group or the support group, the latter carrying a higher rate and no work conditions. For the 2026/27 weekly ESA rates and the savings, earnings and pension thresholds, check the figures on gov.uk, as these are uprated each April and are not fixed here. If you are weighing up how part-time permitted work or a pension affects what you keep, model your overall take-home position with a take-home pay calculator.

Try the calculator