Glossary · UK
What is Contribution-Based Employment and Support Allowance?
A form of ESA paid based on an individual's National Insurance record rather than their household income or savings, now called "new style" ESA and payable regardless of a partner's earnings or the claimant's savings.
Full Definition
Contribution-based Employment and Support Allowance (ESA), now more commonly referred to as "new style" ESA following the rollout of Universal Credit, is paid to claimants who cannot work, or can only do limited work, because of a disability or health condition, based on their National Insurance contribution record rather than their financial circumstances. To qualify, a claimant generally needs to have paid Class 1 or Class 2 National Insurance contributions in one of the last two to three complete tax years before their claim, and to have been assessed, through the Work Capability Assessment, as having limited capability for work. Because entitlement depends on National Insurance record rather than means, contribution-based ESA is not reduced by a partner's earnings or by household savings above the usual means-tested limits, making it available to claimants who would not qualify for income-related support because a partner works or because they have capital above the relevant threshold. It is paid at a flat weekly rate depending on which of two phases the claimant is in: an initial assessment phase (paid at a lower rate for the first 13 weeks while the Work Capability Assessment is carried out) followed by the main phase, where claimants placed in either the Work-Related Activity Group or the Support Group receive a higher rate, with the Support Group rate being higher still and without the requirement to take part in work-related activity. Contribution-based ESA is time-limited to 365 days for claimants in the Work-Related Activity Group (though not for those in the Support Group, who can receive it indefinitely provided they remain entitled), after which the claimant may need to rely on income-related ESA, Universal Credit, or a combination, if their household income and savings mean they qualify. New claims for ESA are now generally only possible for claimants who are also entitled to new style Jobseeker's Allowance conditions or in specific transitional circumstances, since Universal Credit has largely replaced ESA for new claimants, though existing ESA claimants can continue to receive it unless moved onto Universal Credit through the managed migration process.