DISABILITY PREMIUM: Types And How To Claim

If you or anyone you know is disabled especially if the victim’s age is below the state pension age, then check out the disability premium allowance available to support their living. Once you apply and meet the criteria for premiums, sit back and enjoy your extra income. The extra stipend will take care of a couple of things, as you know. Depending on the state of your disability, you can qualify for a severe disability premium with ESA, a contribution-based premium, and so on. This guide entails the various types of disability premiums, ESA support groups, and the exceptions to living alone with severe disability premium.

Disability Premium

Disability premiums are additional money you will receive in addition to your income benefits as a result of disability. No one receives a disability premium alone, it comes with other existing income benefits you already have. You will receive premiums in addition to any of the following; 

#1. income support

#2. Income-based job seeker Allowance  JSA

#3. Employment and Support Allowance ESA 

#4. Housing Benefit

Premiums are automatically added to your income payments, this simply means you do not have to apply to claim them once you qualify for one. Furthermore, you can be eligible for more than one type of disability premium. For example, Mr. Bret is diagnosed with cancer, the doctors think he has barely 6 months to live. This ailment automatically qualifies him for Severe disability premium even with his ESA and other benefits. While it is true that a person can be eligible for more than one premium, you will not be eligible for the disability premiums if you receive income-related Employment and Support Allowance (ESA), although you may be eligible for the severe and increased premiums.

How To Claim Disability Premiums

You do not have to claim premium benefits if you are eligible for one. It will be automatically added to your other payment.

Types Of Disability Insurance

There are three types of disability premiums. The three types of disability premiums in the UK  are; Disability premium, Enhanced Disability premium, and Severe disability premium.  Each of these has different requirements and eligibility criteria as seen below. 

#1. Disability Premium

The disability premium is usually for individuals whose age is below the state pension age. The state pension age is the age at which an individual will start to receive a pension from the state. This simply means if you are disabled and below the state pension age, then you may be eligible for a disability premium.

How Much Will I Get For Disability Premium?

The amount payable for disability premium depends on whether you are single or a couple. If you are a couple, you will get £50.05 every week. While a  single disabled person gets £35.10 per week.

Disability Premium Eligibility 

The first criteria for eligibility when it comes to premium is your age. If you want to apply, you must ensure you are below the state pension age for pension credit. You must also register with at least one of the following;

1. Severe Disablement Allowance

2. Constant Attendance Allowance

3. Disability Living Allowance

4. War Pensioners Mobility Supplement

5. Personal Independence payment 

6. Attendance Allowance

7. Armed Forces Independence Payment

8. Working Tax Credit with a disability element

You will receive your disability income in addition to any of the above you register with. 

#2. Enhanced Disability Premium

If you or your partner receive Armed Forces Independence Payment, Disability Living Allowance at its high level, or the Personal Independence Payment at the high rate, then you are eligible to apply for an enhanced disability premium. However, you must remember that to apply, you must be less than the pension age to qualify for it.

How Much Will I Get For Enhanced Disability Premium

A single individual will get £17.20 per week, while someone with a partner will get £24.60 every week.

How will I Receive My Payment?

Every premium benefit will come with your other related income. That is why one of the requirements for premiums is any income support. Your payment will be added to your support payment. That means you do not have to apply for claims to get your support income.

#3. Severe Disability Premium

A Severe Disability Premium is an additional money you get with other income benefits to help people with severe disability costs. You can also get a severe disability premium with ESA.

Severe Disability Premium Eligibility

To qualify for severe disability premium, you must have qualified for disability income or have any Employment and Support Allowance ESA. Having any of the following is an added advantage; PIP daily living component, AFIP, DLA care component at the middle or highest rate, and Attendance Allowance. Finally, you are expected to be living alone to qualify for a severe disability premium.

Severe Disability Premium Living Alone Exceptions

One of the criteria that you must have to qualify for a severe disability premium is that you must be living alone, but are there exceptions to this rule? Well, there are.

If you are not living alone and still want to qualify for severe disability premium, then the person who stays with you must fall in the following category;

• The person must be less than 18 years of age
• The person must be disabled too if they are above 18 years.

If you are not living alone, and the person you stay with is above 18 years, take note of the following exceptions to qualify for the severe disability premium, you have to make sure;

• The person in question qualifies for a benefit.
• Registered as blind.
• The person 18 or above is a subtenant
• Must not be related to you and must also pay for the house

How Much Will I Receive For Severe Disability?

A single disabled person will get £67.30 per week, while the eligible couple will get £134.60. Some couples will be eligible for the lower amount of £67.30 a week instead. For Enhance disability, if one partner is eligible, both can still get the £24.60 per week. But with severe disability, if one partner qualifies, you will only get the benefit of a single person. 

ESA Support Group Disability Premium

The Employment and Support Allowance ESA is a benefit for persons who have difficulty finding jobs either as a result of a disability or a long-term health condition. It is a support income for individuals who cannot work because they are incapacitated.  ESA has two groups in which they place disabled individuals. The ESA work-related activity and the ESA support group although both can qualify for a disability premium.

#1. ESA Work-related activity 

This group is specifically for individuals who can take on work-related activities. That is, these individuals can still take on jobs irrespective of their impairment.

#2. ESA Support Group

The ESA support group is for those with more serious illnesses or impairments who have been identified or treated as having restricted capability for working. Once you are in a support group and qualify for ESA, you become eligible for an enhanced disability premium. Furthermore, If you are eligible for an Enhanced Disability Premium, your benefit will be automatically calculated with your ESA. 

What is ESA?

Employment and Support Allowance ESA is a benefit for persons who are having difficulty finding work due to a disability or a long-term health condition. This simply means if you are disabled, you may be eligible for Employment and Support Allowance and one such benefit is the disability premium. Everyone wants to work and earn a living. Unfortunately, being ill or disabled may be a limitation to this desire. However, there are certain benefits for such persons. One such benefit is the ESA and disability premiums.

Types Of ESA

There are two types of ESA, which are as follows.

#1. Contribution-based 

#2. Income-related employment and support allowance.

#3. New Style ESA

Contribution-Based ESA And Disability Premium

People who are unable to work due to illness or disability are eligible for Contribution-based ESA with disability premium. However, it is on one condition, you must have paid enough National Insurance contributions while working. If it turns out you did not pay the National insurance, you will only qualify for income-related ESA. The NI is the only qualification that makes you eligible for contribution-based ESA which comes with another disability premium. For people in the work-related activity category, contribution-based ESA entitlement is limited to one year from the day entitlement commenced.

Conditions That Qualifies You For Contribution-Based ESA Disability Premium

There are two conditions that individuals must meet before they qualify for contribution-based ESA which you can add to your premium. 

The First Condition

You must have worked for 26 complete weeks within the last two years. Within that 26 weeks, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks in one of the last two complete tax years. 

Second Condition

You must have paid or been credited with Class 1 or 2 contributions totaling 50 times the lower earnings limit in each of the last two complete tax years.

In addition t to the above conditions, eligibility is also contingent on whether they get a severe disability premium too. Furthermore, people on contribution-based ESA get a free prescription but this depends on the type of disability or health condition they have.

What Will I Get With Contribution-Based ESA?

After applying for ESA, you will undergo a health evaluation. If after the assessment you qualify for contribution-based ESA, then this is what you will likely get. £73.10 for people involved in work-related activity and £111.65 for people in the support group. But before the health evaluation, people under 25 years will get about £57.90 and people 25 and above will get  £73.10 every week. 

Conclusion

There are so many things you can do with the extra money you get with disability premiums. You can decide to apply for a Motability scheme to ease your movement from one place to the other. You can also decide to use it to take care of insurance. If you think you are eligible, take advantage of the extra income benefits.

FAQ’s On Disability Premiums