New Style ESA, contribution-based, no means test

What New Style ESA is

New Style ESA is a contribution-based, non-means-tested benefit for working-age people with limited capability for work due to ill health or disability. It replaced contribution-based ESA for new claims when Universal Credit rolled out. The legal basis is the Welfare Reform Act 2007 as amended by the Welfare Reform and Work Act 2016.

Who qualifies

You must:

• Be of working age (16 to State Pension age).
• Have limited capability for work — established by the Work Capability Assessment.
• Meet the NI contributions test: have paid Class 1 or Class 2 NI in 2 of the 3 most recent tax years before the benefit year of claim. Self-employed Class 2 contributions count. NI credits from being on certain other benefits (Carer's Allowance, JSA, child benefit for under-12s) also count for the second condition.
• Not be in full-time work (over 16 hours/week, or earning more than the permitted-work limit of around £183/week from limited "permitted work").

Savings and your partner's income are irrelevant. That is what distinguishes it from UC.

Rates and the two groups

2025/26 rates:

• Assessment phase (typically first 13 weeks, while you await the WCA): £92.05/week (age 25+) or £72.90/week (under 25).
• Support Group (equivalent to LCWRA): £140.55/week. No time limit.
• Work-Related Activity Group (WRAG) (equivalent to LCW): £92.05/week. Limited to 365 days.

The Support Group is for people whose health means they cannot reasonably be required to undertake any work-related activity. The WRAG is for people who cannot work now but could be expected to prepare for work in future. Both groups are decided by the same WCA. See our LCWRA guide for the descriptors and the substantial-risk rule — they apply identically to ESA.

The 365-day limit (WRAG only)

Since the Welfare Reform Act 2012, contribution-based ESA and New Style ESA payment in the Work-Related Activity Group is limited to 365 days. The 365 days are cumulative across linked periods of claim. After 365 days, ESA stops. You can normally then claim Universal Credit (means-tested) to continue receiving income, or remain on UC with LCW. The Support Group has no time limit.

If your condition deteriorates and you are moved from WRAG to Support Group, the clock stops and the limit no longer applies. Always re-request a WCA if your condition has worsened.

How it sits alongside Universal Credit

You can claim New Style ESA and Universal Credit together. New Style ESA is treated as unearned income for UC and reduces UC pound-for-pound (no work allowance applies). So financially, the headline figure does not increase. But claiming both is usually still right because:

• ESA pays you Class 1 NI credits automatically — protecting State Pension and contribution-based benefits.
• If your UC ends (e.g. you move in with a working partner, or savings rise above £16,000), ESA continues.
• If you are in the Support Group, you are protected from UC's WCA reassessment cycle — your status is set.
• UC can then add Housing element, child elements, and (if you qualify) the LCWRA top-up.

Pension income deduction

Private/occupational pension income reduces New Style ESA pound-for-pound above £85/week. So a pension of £100/week reduces ESA by £15/week. State Pension is treated separately (and you cannot claim ESA after reaching State Pension age — you move to Pension Credit / State Pension).

How to apply

Apply online at gov.uk/guidance/new-style-employment-and-support-allowance. You will need: NI number, bank details, fit note (Med 3) from day 8 of incapacity, GP and consultant details, employer details if employed, details of any pension income. You can backdate by up to 3 months, but fit notes must cover the backdated period.

If refused on the WCA, request Mandatory Reconsideration within 1 month then appeal to the First-tier Tribunal — same SSCS1 process as our PIP tribunal guide.

Frequently asked questions