1. What is employment and support allowance
Employment and support allowance (ESA) is for people who have limited capability for work because of illness or disability.1Reg 1 ESA Regs There is a contributory and an income-related ESA. Contributory ESA is for people who have paid national insurance contributions. Income-related ESA is means tested and is for people whose income and capital are low enough. It is possible to receive one or both types of ESA.
Note: you cannot usually make a new claim for income-related ESA as it is in the process of being replaced by universal credit. However, some people can add an award of income-related ESA to ‘old’ awards of contributory ESA (see CPAG’s Welfare Benefits and Tax Credits Handbook for more details).