2. However, there are certain cases where a claim starting on or after 3 April 2017 that will still receive the WRAC:

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1 Components of ESA(C) Introduction 1. An ESA (C) award is made up of the Personal Allowance only during the Assessment Phase. A Work-Related Activity Component or Support Component, and a Transitional Addition if appropriate, may be included during the Main Phase. The WRAC is not payable on claims where the PLCW starts on or after 3 April However, there are certain cases where a claim starting on or after 3 April 2017 that will still receive the WRAC: Incapacity Benefit Re-assessment (IBR) cases that are moved to ESA Claims made on or after 3 April 2017 but are backdated to before 3 April 2017 (3 months) Claims that are within 12weeks of a claimant having stopped receiving maternity allowance where the maternity allowance brought to an end a claimant s award of ESA that was as a result of a claim before 3 April 2017 Claims that link to a JSA EPS period which began before to 3 April 2017 Mandatory Reconsideration/Appeal favourable decision that relate to claims prior to 3 April An ESA (C) award that has been through IB (IS) Reassessment: will be made up of o the Personal Allowance and o a Work Related Activity Component or a Support Component May include ESA(C) Transitional Addition (TA). May only be payable at Assessment Rate if the 12-week linking rule applies and the WCA outcome is not known. 4. Claimants found not to have LCW and who appeal will be entitled to ESA (C) at a rate equivalent to the Assessment Rate (i.e. no component or TA) until the appeal is decided. Transitional Addition 5. A Transitional Addition is payable only in the Main Phase. It is an additional amount of money payable to claimants who were entitled to more on their existing incapacity benefits than they were entitled to when they moved to ESA. 6. This is only payable to claimants who transferred to ESA as part of IB(IS) reassessment and only under certain conditions. 7. ESA (C) TA amounts are not reviewed annually and will not be uprated. They will erode over time and will not be payable after 05 April In most cases, JSAPS will automatically calculate the Transitional Addition for the claimant. 9. If the claim is maintained clerically, show the award of the Transitional Addition on form ESA14 Personal Allowance 10. ESA (C) Personal Allowance is payable for normal living expenses for the claimant only. It is based on age and whether they are in the Assessment or Main Phase. 11. Additional amounts for partners are not included as ESA (C) is only payable for the claimant.

2 12. During the Assessment Phase there are two rates of Personal Allowance: single person rate aged under 25; single person rate aged 25 or over. 13. During the Main Phase, there is only one rate of Personal Allowance covering both age groups. 14. ESA (C) Personal Allowance amounts are reviewed annually and may be uprated from April each year (see Uprating in Payments guidance). 15. In most cases, JSAPS will automatically calculate the appropriate Personal Allowance for the claimant. 16. Where a claim to ESA is made within 12 weeks of a period of JSA Extended Period of assessment phase (a JSA EPS does not count towards the 365th day). JSAPS automatically awards any component and premiums from the 92nd day from the start of the ESA claim. Therefore a clerical calculation is required to determine the 91st day that includes the JSA EPS. Arrears will need to be paid from the corrected 92nd day up to the day before the date JSAPS has calculated the arrears from. Pay the arrears in dialogue JA If the claim is maintained clerically, show the award of Personal Allowance on form ESA14 Work-Related Activity Component 18. The Work-Related Activity Component (WRAC) may be payable to claimants who have LCW and capability for work-related activity. It is paid on top of the Personal Allowance during the Main Phase. 19. For claims starting on or after 3 April 2017 the WCA still moves claimants into the WRAG but the WRAC is no longer payable. See: WCA component on linking cases and New claim following period of Credits only (Modification Rule) when deciding whether the WRAC is payable. 20. JSAPS automatically awards any component due to the claimant following completion of the WCA outcome in dialogue JA674: ESA Personal Capability Assessment. 21. Where a claim to ESA is made within 12 weeks of a period of JSA Extended Period of assessment phase (a JSA EPS does not count towards the 365th day) and is subject to the WRAC rules from 3 April 2017 where the WRAC may/may not be payable from the 92nd day (start of the main phase). JSAPS automatically awards any component and premiums from the 92nd day from the start of the ESA claim. Therefore a clerical calculation is required to determine the 91st day that includes the JSA EPS. Arrears will need to be paid from the corrected 92nd day up to the day before the date JSAPS has calculated the arrears from. Pay the arrears in dialogue JA If the claim is maintained clerically, show the award of the Work-Related Activity component on form ESA14. Support Component

3 23. The Support Component is paid to claimants who have LCW and Limited Capability for Work- Related Activity (LCWRA). These claimants are so severely ill or disabled it is unreasonable to require them to engage in work-related activity. It is a higher amount than the WRAC and is paid on top of the Personal Allowance during the Main Phase. 24. JSAPS automatically pays any component due to the claimant following completion of the WCA outcome in dialogue JA674: ESA Work Capability Assessment. 25. Where a claim to ESA is made within 12 weeks of a period of JSA Extended Period of assessment Phase (a JSA EPS does not count towards the 365th day) and the Support Component will be awarded from the 1st day of the 14th week (start of the main phase). JSAPS automatically awards any component and premiums from the 92nd day from the start of the ESA claim. Therefore a clerical calculation is required, as the 13 weeks starts from the first day of the JSA EPS. Pay arrears from the corrected 92nd day up to the day before the date JSAPS has calculated the arrears from. This will need to be paid in dialogue JA If the claim is maintained clerically, show the award of the Support Component on form ESA14.

4 Components of ESA(IR) Introduction 1. During the Assessment Phase, an ESA(IR) award is made up of the Personal Allowance, any qualifying Premiums and Housing Costs. A Work-Related Activity or Support Component, and a Transitional Addition if appropriate, will be included during the Main Phase. 2. An ESA (IR) award that has been through IB (IS) Reassessment: will be made up of o the Personal Allowance and o a Work Related Activity Component or a Support Component may include ESA (IR) Transitional Addition (TA). may only be payable at Assessment Rate (i.e. no component or TA) if the 12-week linking rule applies and the WCA outcome is not known. 3. Claimants found not to have Limited Capability for Work (LCW) and who appeal will be entitled to ESA (IR) at a rate equivalent to the Assessment Rate (ie no component or TA) until the appeal is decided. 4. ESA(IR) does not provide an allowance for dependent children or qualifying young persons. Transitional Addition 5. A Transitional Addition is payable only in the Main Phase. It is an additional amount of money payable to claimants who were entitled to more on their existing incapacity benefits than they were entitled to when they moved to ESA. 6. This is only payable to claimants who transferred to ESA as part of IB(IS) reassessment and only under certain conditions. 7. ESA (C) TA amounts are not reviewed annually and will not be uprated. They will erode over time and will not be payable after 05 April In most cases, JSAPS will automatically calculate the appropriate Transitional Addition for the claimant. 9. If the claim is maintained clerically, show the award of the Transitional Addition on form ESA14. Personal Allowance 10. Personal Allowances are payable for the claimant s and partner s normal living expenses. The Personal Allowance for ESA(IR) is based the rates for JSA and depend on whether the claimant is: single or a member of a couple aged under 25 or 25 and over a lone parent in the Assessment Phase or the Main Phase 11. During the Assessment Phase the Personal Allowance will depend on whether the claim is for: single person aged under 25;

5 single person aged 25 or over; lone parent aged 18 or over; lone parent aged under 18; couple, both aged 18 or over; couple, one or both aged under Refer all claims to a DM to decide on the couple rate where one or both are aged under 18 during the Assessment Phase. 13. During the Main Phase the Personal Allowance is: single person rate lone parent rate couple rate 14. Refer all claims to a DM to decide on the couple rate where one or both are aged under 18 during the Main Phase. 15. The age of the claimant has no bearing on the Personal Allowance during the Main Phase. Single claimants aged under 25 will move onto the aged 25 or over rate; lone parents aged under 18 will move onto the aged 18 or over rate. 16. The ESA applicable amounts are reviewed annually and are uprated from April each year (see Uprating in Payments guidance). 17. JSAPS will automatically calculate the appropriate Personal Allowance for the claimant and/or their partner. 18. If the claim is maintained clerically, show the award of the Personal Allowance on form ESA14. Personal Allowances in Polygamous Marriages or Polygamous Relationships 19. In polygamous marriage cases award Personal Allowances: for the claimant and the eldest partner at the correct couple rate; and for each additional partner, award the difference between the higher rate for a couple and the rate for a single claimant aged 25 or over. 20. In polygamous relationships, treat each member of the relationship as a single claimant or, if appropriate, a lone parent. This is because the law doesn t recognize polygamous relationships as it does polygamous marriages. See DMG Volume 3, Chapter To award the correct Personal Allowance on JSAPS in claims involving polygamous marriages: Step Action 1 In dialogue JA610: ESA Claim Maintenance, screen JA ABOUT PARTNER, record the eldest partner 2 In dialogue JA610: ESA Claim Maintenance, screen JA DEPENDANTS, record any subsequent partners and input [P] in the relevant field. 22. If the claim is clerically maintained show the details of the additional dependants on form ESA14.

6 Premiums 23. Premiums are fixed rates of Employment and Support Allowance (ESA) paid in addition to the personal allowance to those who satisfy certain conditions. 24. It is important that premiums are awarded or ended correctly and at the right time. Failure to award or end premiums correctly may result in underpayment / overpayment of benefit to our most vulnerable claimants. 25. There are four categories of premium: Pensioner (PP) Severe Disability Premium (SDP) Enhanced Disability Premium (EDP) Carer Premium (CP) 26. For further information see premiums. Housing Costs 27. Housing costs can include: interest payments on mortgages and/or loans to: o acquire an interest in the home where the claimant is living; o make certain repairs and improvements to the home where the claimant is living; and o repay loans used to replace loans previously taken out for any of the above; rents or ground rents on long tenancies; service charges; payments by way of rent charges; payments under a co-ownership scheme; payments under or relating to a tenancy or licence of a Crown Tenant; and payments for tents and their sites. 28. Only include housing costs not covered by Housing Benefit in the calculation, for example, interest payments on mortgages. 29. JSAPS will automatically calculate the housing costs. 30. In clerically maintained claims, show the award of housing costs on form ESA14. Work-Related Activity Component 31. The Work-Related Activity Component may be payable to claimants who have LCW and capability for work-related activity. It is paid on top of the ESA (IR) entitlement during the Main Phase. 32. For claims starting on or after 3 April 2017 the WCA still moves claimants into the WRAG but the WRAC is no longer payable. See: WCA component on linking cases and New claim following period of Credits only (Modification Rule)

7 when deciding whether the WRAC is payable. 33. JSAPS automatically awards any component due to the claimant following completion of the WCA outcome in dialogue JA674: ESA Personal Capability Assessment. 34. Sanctions can be applied to an ESA award following FTA or FTP in Mandatory interview or intervention and FTP in WRA. 35. Where a claim to ESA is made within 12 weeks of a period of JSA Extended Period of assessment Phase (a JSA EPS does not count towards the 365th day) and determines if and when the WRAC can be awarded. JSAPS automatically awards any component and premiums from the 92nd day from the start of the ESA claim. Therefore a clerical calculation is required, as the 13 weeks starts from the first day of the JSA EPS. Pay arrears from the corrected 92nd day up to the day before the date JSAPS has calculated the arrears from. Pay the arrears in dialogue JA If the claim is maintained clerically, show the award of the Work-Related Activity component on form ESA14. Support Component 37. The Support Component is paid to claimants who have LCW and Limited Capability for Work- Related Activity (LCWRA). These claimants are so severely ill or disabled it is unreasonable to require them to engage in work-related activity. It is a higher amount than the WRAC and is paid on top of the Personal Allowance during the Main Phase. 38. JSAPS automatically pays any component due to the claimant following completion of the WCA outcome in dialogue JA674: ESA Work Capability Assessment. 39. Where a claim to ESA is made within 12 weeks of a period of JSA Extended Period of assessment Phase (a JSA EPS does not count towards the 365th day) and the Support Component will be awarded from the 1st day of the 14th week (start of the main phase). JSAPS automatically awards any component and premiums from the 92nd day from the start of the ESA claim. Therefore a clerical calculation is required, as the 13 weeks starts from the first day of the JSA EPS. Pay arrears from the corrected 92nd day up to the day before the date JSAPS has calculated the arrears from. This will need to be paid in dialogue JA If the claim is maintained clerically, show the award of the Support Component on form ESA14.

2. It is important that premiums are awarded or ended correctly and at the right time.

Summary 1. Premiums are fixed rates of Employment and Support Allowance (ESA) paid in addition to the personal allowance to those who satisfy certain conditions. 2. It is important that premiums are awarded