Introduction

1. An Employment and Support Allowance (ESA) hardship award is an award of Income RelatedESA (ESA(IR) made at a reduced rate to give a minimum level of financial support.

2. ESA Hardship payments can be made to certain people who would suffer hardship if ESA was not paid. Hardship payments can only be made to claimants who have been sanctioned under the new regime for failures on or after the 3 December 2012.

Conditions for receiving anESA hardship award

3. Before anESA hardship award can be made, a claimant must satisfy four conditions:

  • the claimant must apply for the hardship award in the appropriate manner; and
  • the claimant must be in one of the prescribed circumstances for receiving an award; and
  • the claimant must show that they, or a specified member of their family, would suffer hardship if an award was not made; and
  • the claimant must have an award of ESA(IR) or be in receipt of ESA(C) but has an underlying entitlement to ESA(IR)

Appropriate manner of application

4. The appropriate manner of application is usually for the claimant:

  • to complete and sign the ESA hardship application form JSAESA10JP; and
  • to attend an interview with the ESA Hardship Officer in the Jobcentre.

Prescribed circumstances

5. AnESA hardship award can only be made if one of the following prescribed circumstances applies:

  • the claimant has received an adverse decision on ESA conditionality including undertaking Work Related Activitybut all other conditions of entitlement to ESA(IR) are satisfied; and
  • a sanction has been imposed on the claimant, but all other conditions of entitlement to ESA(IR) are satisfied.

Adverse decision on ESA conditionality including Work Related Activity

6. If a claimant has received adverse decision on ESA conditionality including undertaking Work Related Activitythey can only receive an ESA hardship award if:

  • they are in receipt of ESA(IR) or have an underlying entitlement to ESA(IR); and
  • the adverse decision was issued because they:
  • failed to attend the NJWFI; or
  • failed to undertake work related activity.

ESA is not paid because of a sanction

7. If a sanction is imposed, the personal allowance (prescribed amount) component of ESA is not paid for the sanction period under normal rules. However, payments can be made under the ESA Hardship Provision if the claimant successfully applies for a hardship award.

ESA (C) with Underlying Entitlement to ESA Income Related

8. If a claimant who is in receipt of ESA (C) claims a hardship payment they must be assessed to see if they have an underlying entitlement to ESA(IR). If they have an underlying entitlement they will need to submit a claim for ESA IR by completing an ESA application for review form (ESA3)and a claim for hardship at the same time.

9. If aclaimant in receipt ESA(C) has an underlying entitlement to ESA(IR) they will need to make a claim to ESA(IR). This will mean the claimant will now have to meet the conditionality aspects of ESA(IR)

10. You will need to inform the claimant about thepotential impact of claiming ESA(IR) and the difference this can have on their ESA claim. ESA(C) claimants are not mandated to the Work Programme, while some ESA(IR) claimants are, depending on their prognosis.

Note: For further information see Claimant receiving ESA(C) applies for a hardship award

From what date are hardship payments payable

11. All ESA claimants have day 1 access to hardship payments. .

12. A person or couple in hardship are entitled to a hardship payment from the latest of either:

  • the date the claimant becomes a person in hardship; or
  • the date of claim to hardship.

13. However, the claimant can be awarded hardship payments for the period between the date the person is in hardship and the date the ESA10 is returned, if the Hardship Officer is satisfied that the claimant suffered hardship in that period.

Enquiries from claimants

14. A claimant may ask about applying for anESA hardship award:

  • in person;
  • by telephone; or
  • by post.

Claimant attends in person or enquires by telephone

15. If the claimant attends the Jobcentre in person or telephones to ask about anESA hardship award, explain to them the generalconditions for getting anESA hardship award.

Note: If claimant telephones Contact Centre this will be a handover to the appropriate Benefit Centre.

16. It is important that the claimant is not discouraged from making an application for anESA hardship award, however depending upon the circumstances, tell the claimant:

  • when they can expect a payment of ESA under the normal rules again if their ESA is sanctioned; or
  • that, if they have received an adverse decision onESA conditionality including undertaking Work Related Activitythey can receiveESA again when they have addressed the question which was decided against them and served the relevant fixed penalty sanction. However, until the claimant addresses the question they may be entitled to receive hardship.

17. If the claimant decides not to continue with their application for anESA hardship award you must explain:

  • that they are eligible to apply for hardship and if eligible they can receive from day 1 of the applied sanction; and
  • that the personal allowance component of their ESA award will be removed until they address the outstanding requirement and serve the relevant fixed sanction period.

However, if the claimant wants to continue with their application for anESA hardship award:

  • explain the ESA hardship procedures to the claimant;
  • make the claimant an appointment for a ESA hardship interview at the Jobcentre; and
  • issue them with anESA hardship interview appointment letter (JSA/ESA10A) and anESA hardship application form (JSA/ESA10).

Claimant enquires by post

18. If the claimant enquires about claiming ESA hardship by post, a Hardship interview should be arranged for the claimant to see the Hardship Officer in the Jobcentre to make their application. The claim form will be forward to the Hardship Officer who will arrange an appointment with the claimant.

19. If there is a telephone number available for the claimant ring them to arrange the appointment with the ESA Hardship Officer. If the appointment is not for the same day, send the claimant anESA hardship interview appointment letter (JSA ESA 10A)and anESA hardship application form (JSA ESA 10JP).

20. If the claimant does not have a telephone, arrange an appointment with the ESA Hardship Officer. Send the claimant anESA hardship interview appointment letter (JSA/ESA10A) and anESA hardship application form (ESA10).

Note: remember to allow time for the post when arranging the appointment.

The ESA Hardship interview

21. The decision about whether or not to make anESA hardship award is usually made by a JSA/ESA Hardship Officer in the Jobcentre.

22. The JSA/ESA Hardship Officer conducts the hardship interview with the claimant, during which they decide:

  • if the claimant, and their circumstances, satisfies the conditions to receive anESA hardship award; and
  • whether the claimant or a member of their family would suffer hardship if anESA hardship award is not made.

23. When the claimant attends the Jobcentre for their hardship interview the following action is required:

Step / Action
1 / explain the ESA hardship procedures;
2 / examine the ESA hardship application form (JSA/ESA10) to check that it is correctly completed and signed and obtain any missing information;
3 / compare the information on the JSA/ESA10 to that on JSAPS;
4 / if the claimant was previously receiving ESA(C) only, check that form ESA3has been correctly completed.
5 / check if claimant is in one of the prescribed circumstances for receiving anESA hardship award;

Claimant is not in one of the prescribed circumstances

24. If the claimant is not in one of the prescribed circumstances, they cannot be entitled to anESA Hardship award. The ESA Hardship Officer should:

Step / Action
1 / record the decision on hardship decision form JSA/ESA11;
2 / complete form JSA/ESA11Dshowing the reason why anESA hardship award cannot be made and issue it to the claimant;
3 /
  • to the claimant the reasons why they are not entitled to anESA hardship award, and tell them that they can go through the disputes process if they wish.

4 / attach form JSA/ESA11 to the JSA/ESA10and forward both to the Benefit Centre for retention
5 / Access dialogue JA110: Maintain Notepadand record the details of the Hardship application and the decision.

Deciding the hardship condition

25. After checking the ESA hardship application form (JSA/ESA10) to ensure that it has been correctly completed and signed by the claimant, the ESA Hardship Officer should decide:

  • if the claimant satisfies the conditions for receiving ESA hardship; and
  • if the claimant or a specified member of their family will suffer hardship should anESA hardship award not be made.

26. After considering all the available evidence, take the appropriate action depending on whether the claimant:

  • does not satisfy the hardship conditions; or
  • satisfies the hardship conditions.

Claimant does not satisfy the ESA Hardship conditions

27. If the claimant does not satisfy the ESA hardship conditions the Hardship Officer will:

Step / Action
1 / record the decision on hardship decision form JSA/ESA11
2 / complete form JSA/ESA11Dshowing the reason why anESA hardship award cannot be made and issue it to the claimant;
3 /
  • to the claimant the reasons why they are not entitled to anESA hardship award, and tell them that they can go through the disputes process if they wish.

4 / attach form JSA/ESA11 to the JSA/ESA10 and forward both to the Benefit Centre for retention
5 / Within JSAPS, access dialogue JA060: Register claim/event, REGISTER CLAIM/EVENT screen JA060062and complete the following fields:
  • ‘Event type’ input [04];
  • ‘Event sub type’ input:
  • [01] for a suspension;
  • [02]] for a disallowance;
  • [03] for a sanction; or
  • [04] if the claim has not been decided;
  • ‘Receipt date’ input the date of the ESA hardship interview;

6 / Access JSAPS dialogueJA610, select the hardship event and complete the following fields:
  • ‘Outcome’ input [02] adverse decision to show that the hardship application has not been successful;
  • ‘Completed date’ input the date of the ESA hardship interview;

Claimant satisfies the Employment and Support hardship conditions

28. If the claimant satisfies the ESA hardship conditions:

Step / Action
1 / explain to the claimant that they are entitled to anESA hardship award and when they can expect to receive a payment
2 / explain to the claimant about the arrangements for the future;
3 / 40% reduction in the claimant’s personal allowance applies;
4 / record the decision on hardship decision form JSA/ESA11;
5 / attach form JSA/ESA11 to the JSA/ESA10and forward both to the Benefit Centre.
6 / complete form JSA/ESA11Aand issue it to the claimant;
7 / Access dialogue JA110: Maintain Notepadand record the details of the Hardship application and the decision.

The amount of a hardship payment

29. ESAhardship will be paid at 60% of a single claimants’personal allowance aged 25 or over.

The Work Related Activity Component will remain unaffected.

The claimant has received an adverse decision onESA conditionality including undertaking Work Related Activity

30. If the claimant has received an adverse decision onESA conditionality including undertaking Work Related Activity, tell them that:

  • payments made under ESA hardship award are usually paid two weeks in arrears;
  • they may be eligible to get ESA under the normal rules if they address theESA conditionality including undertaking Work Related Activity entitlement issue;
  • the ESA hardship award is open,as long as the claimant attends their advisory interviews and satisfies the other ESA(IR) entitlement conditions; and
  • any payments made under ESA hardship count towards the 365 days ESA(C) entitlement.
The claimant has been sanctioned

31. If the claimant has been sanctioned, tell them that:

  • payments made under ESA hardship are usually paid two weeks in arrears; and
  • ESA hardship payments can be made throughout the sanction period, so long as the claimant:
  • satisfies the ESA(IR) entitlement conditions.

Processing anEmployment and Support hardship award on JSAPS

32. Hardship awards should be processed on JSAPS by a Customer Service Officer in the Benefit Centre once they received the ESA10 or ESA11.

33. To process anEmployment and Support hardship award on JSAPS:

Step / Action
1 / access dialogue JA120: Event maintenance to check if there is an open New Claim or Change of Circumstances event;
2 / access dialogue JA060: Register claim/event, REGISTER CLAIM/EVENT screen JA060062 and complete the following fields:
  • ‘Event type’ input [04] hardship;
  • ‘Event sub type’ input:
  • [01] for a suspension;
  • [02] for a disallowance;
  • [03] for a sanction; or
  • [04] if the claim has not been decided;
  • ‘Receipt date’ input the date the claimant applied for anESA hardship award;
then:
  • if there is an open New Claim or Change of Circumstances event, go to Step 4;
  • if there is no open New Claim or Change of Circumstances event, go to Step 3.

3 / re-access dialogue JA060: Register claim/event, EVENT MAINTENANCE REGISTER CLAIM/EVENT screen JA060062 and complete the following fields:
  • ‘Event type’ input [02] change of circumstances;
  • ‘Event sub type’ input [10];
  • ‘Receipt date’ input the date the claimant applied for anESA hardship award.

4 / press [F1] to go to dialogue JA610: Maintain claim details, CLAIM DETAILS PICKLIST screen JA610636and complete the following fields under change of circumstances:
  • ‘Effective date’ input the date ESA hardship payments have been awarded from;
  • ‘Exceptional conditions’ input [Y];

5 / press [ENTER] to display the EXCEPTIONAL CONDITIONS screen JA0627657and complete the following fields:
  • ‘Person no’ input [01] customer;
  • ‘Reason code’ input code:
  • [15] to show an adjustment to the claimant’s applicable amount;
  • [28] input 40% reduction
  • ‘D/Start’ input the date the hardship payments have been awarded from;
  • ‘D/End’ input a date which is within 26 weeks of the start date of the hardship award, even if the ESA hardship award is open ended.
  • Set workflow to review hardship award in 26 weeks should the hardship award still be in place.

6 / From Dialogue 610: Maintain Claim details, Claim DETAILS PICKLIST screen JA610636 and complete:
  • Evidence Complete
  • Select [99] in the hardship decision field.

7 / press [F1] to go to dialogue JA200: Award and Decision, EVIDENCE SUMMARY screen JA200201;
8 / press [ENTER] or [F12] to go to the AWARD SUMMARY screen JA200202;
9 / when you are satisfied with the summary of evidence and award details, press [F24] to make a decision;
10 / if the claimant has an eligible home loan, access dialogue JA301: Maintain Mortgage Directand input/update the information as appropriate;
11 / Access dialogue JA405: Compute payment to display the payment profile calculated by the system and to produce AnESA hardship payment if one is due;
12 / JSAPS automatically issues the relevant notifications to the claimant. The notification tells the claimant that they are entitled to AnESA hardship payment.

Claimant receiving ESA(C) applies for a hardship award

34. Awards made under the ESA Hardship Provision are awards of Income Based ESA which are paid at a reduced rate.

35. There is no provision for awarding Contribution Based ESA (ESA(C)) under the ESA Hardship Provision. However, claimants who usually receive ESA(C) only can apply for anESA hardship award if they provide the information required to assess if they have an underlying entitlement to ESA(IR).

36. If the details needed for the ESA(IR) assessment are already held:

  • confirm whether the details are correct;
  • if anything has changed, take normal change of circumstances action; and
  • assess ESA(IR) using this information.

37. If the details are not already held, ask the claimant to complete anESA application for review form (ESA3). This is needed before entitlement to anESA hardship award can be decided.

38. Any ESA hardship payments made will continue to erode the claimant’s cumulative total.

Change of circumstances

39. If a claimant receiving an award of ESA under the ESA Hardship Provision reports a change of circumstances the decision to award Hardship should be reviewed.

Claimant still satisfies the ESA hardship conditions

40. If the claimant still satisfies the ESA hardship conditions:

Step / Action
1 / Accessdialogue JA091: Maintain claim detailsand record the change if appropriate;
2 / continue normal action.

Claimant no longer satisfies the ESAhardship conditions

41. If the claimant no longer satisfies the ESA hardship conditions:

Step / Action
1 / record the decision on hardship decision form JSA/ESA11;
2 / complete and issue form JSA/ESA11D showing the reason why an award cannot be made:
  • under the normal rules; nor
  • under the ESA Hardship Provision;

3 / explain to the claimant:
  • they are not entitled to ESA at all; and
  • the reasons why;

4 / tell the claimant that, if they wish, they can go through the disputes process;
5 / if the claimant’s claim is maintained:
  • by JSAPS, go to Step 6; or
  • clerically, go to Step 20;

6 / access dialogue JA060: Register claim/event, REGISTER CLAIM/EVENT screen JA060062and complete the following fields:
  • ‘Event type’ input [02] change of circumstances;
  • ‘Event sub type’ input [10] changes to exceptional conditions;
  • ‘Receipt date’ input the date of the hardship interview;

7 / press [F1] to go to dialogue JA091: Maintain claim details, CLAIM DETAILS PICKLIST screen JA610636 and complete the Change of circumstances ‘Effective date’ field to show the date payment under the ESA hardship award will stop;
8 / press [F24] to re-display the CLAIM DETAILS PICKLIST screen JA610636and input [Y] in the ‘Exceptional conditions’ field;
9 / press [ENTER] to display the EXCEPTIONAL CONDITIONS screen JA627657and identify the exceptional conditions showing codes:
  • [28]; and
  • [15] with a ‘D/Start’ which is the same as the ‘D/Start’ for code [28];

10 / When you have identified the correct exceptional conditions [15] and [27/28], overtype the date in the ‘D/End’ fields to show the date the ESA hardship award stops;
11 / press [F1] to go to dialogue JA200: Award and Decision, EVIDENCE SUMMARY screen JA200201; System Reference Guide Volume 6
12 / press [ENTER] or [F12] to go to the AWARD SUMMARY screen JA200202;
13 / if the change of circumstances is effective from:
  • a date between the last benefit week ending (BWE) day and the current BWE day, go to Step 14; or
  • the current BWE day, go to Step 18;

14 / identify the Award Summary screen which includes the final ESA hardship award details and then press [F5] to access the CLERICAL COMPONENTS screen JA200203;
15 / check whether the details displayed are correct;
16 / if the details displayed:
  • are correct, go to Step 17; or
  • are not correct, amend them as appropriate and then go to Step 17;

17 / press [ENTER] to return to the AWARD SUMMARY screen JA200202;
18 / when you are satisfied with the summary of evidence and award details, press [F24] to decide;
19 / after deciding, press [END];
20 / attach form JSA/ESA11 to the ESA hardship application form ESA10 and file both in the claimant’s claim file.

42. Further information about ESA Hardship is available within Volume 6, Chapter 35 of the Decision Makers Guide.