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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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PAYE operation: employment and support allowance: rates of ESA: new claimants and IB to ESA reassessment

New claimants

The amounts of Employment and Support Allowance (ESA) payable for the 2014-15 tax year are

For the first 13 weeks from start of the claim

  • Person aged 16 to 24 £57.35 per week
  • Persons aged 25 and over £72.40 per week
  • Couples up to £113.70 per week dependant on age and parental responsibility

After 13 weeks to those claimants identified as capable of taking part in some form of work related activity

  • Maximum £101.15

After 13 weeks to those claimants identified as not able to take part in any work related activity

  • Maximum £108.15

Individuals who receive an occupational pension of more than £101 per week will have their ESA reduced by half of the excess. For example, a pension received of £116 per week is £15 in excess. The amount of ESA will be reduced by £7.50.

IB to ESA reassessment claims

The rates shown above do not apply to Incapacity Benefit (IB) to ESA reassessment claimants.

In the year of reassessment, the weekly rate of ESA benefit paid to the individual will not be less than their previous weekly IB entitlement. Therefore, in some cases individuals may receive more than the standard weekly rates of ESA shown above. Any additional allowance received over and above the standard weekly rate will be eroded over time from annual coding uprating.

If you receive any enquiries regarding the ESA deduction included in an individual’s tax code, you should follow the guidance at PAYE77250 under the heading ‘Queries regarding the amount of ESA coded’.