Self-Employed Claiming Benefits

[naomi24]

Not sure where to put this, but here goes. Can someone who has been self-employed all his life, but has now become seriously ill, claim benefits? He’s 52 and has paid his National Insurance contributions, but it’s doubtful he’ll ever be able to work again. He has no property and no savings.

[mrs_overall]

It depends on what type of NI contributions he has paid. If he has paid Class 2 he will get zilch as regards ESA (the old Incapacity Benefit).

Depending on his condition he may be elegible for Disability Living Allowance but I can't comment without more info

[tamborine]

Why not, if he has paid NI. This might help

http://www.nihe.gov.uk/self-employed

[naomi24]

Thanks Mrs O. I have no idea what sort of contributions he's paid. He's in intensive care on life support at the moment, but it's now looking like he just might pull through and if he does I'm wondering how he's going to manage.

[naomi24]

Thanks Tamborine.

[mrs_overall]

I appreciate it is a difficult time.
I have a friend in exactly the same situation - a self employed plumber with a broken neck who cannot use his arms.
He paid Class 2 NI and is entitled to nothing.
He parents are paying a years backdated Class 4 NI contributions for him which will enable him to start claiming ESA.
When your friend is a bit further down the line, if you need advice on DLA please ask me

[Connemmara]

naomi this is very sad to hear but you wonder what good is being self-employed - I know a man a basic window cleaner (self employed) he was denied everything and he and his wife got it very hard. Sorry can't help you with any entitlement advice but I would say since he has no savings etc - he should get some financial help.

[DJHawkes]

My oh Pays class 2 and 4 and got esa when he had an Injury but didn't get it when he had no work for 4 weeks in 2011

[mrs_overall]

The trouble is with a lot of self employed people is that they keep their earnings low on paper and can get away with paying Class 2 NI. Unfortunately this entitles them to a state pension on retirement but no sickness related benfits

[tamborine]

http://www.hmrc.gov.uk/working/intro/class4.htm

Class 4 National Insurance - how much you pay
The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9 per cent on annual profits between £7,755 and £41,450 (2013-14) and 2 per cent on any profit over that amount.

http://www.hmrc.gov.uk/ni/intro/benefits.htm

The contributory benefits
National Insurance contributions count towards the following state benefits:
• the basic State Pension
• the additional State Pension, sometimes called the State Second Pension
• Jobseeker's Allowance - the 'contribution-based' element
• Employment and Support Allowance - the 'contribution-based' element
• Maternity Allowance
• bereavement benefits - Bereavement Allowance, Bereavement Payment and Widowed Parent's Allowance
• Incapacity Benefit

[naomi24]

Blimey! That doesn't sound good. Thanks all - and thanks for the offer, Mrs O. I may well take you up on it.

[jim360]

If you could provide more cicrumstances I can pass this on to someone I know in the DWP -- they suggested based on the facts as they are that he could claim ESA anyway, even without NI contributions.

[naomi24]

Thanks Jim. That's all I know - I've never discussed his earnings or his NI contributions with him, but no doubt I will when we try to sort him out - if he survives. I do know, though, he has no property and no savings. Zilch.

[jim360]

That doesn't sound good and I hope he pulls through.

[naomi24]

Thanks Jim. So do I - but he's saying he doesn't want to, and I think that might be due in part to the circumstances he's likely to find himself in - which is why I asked the question.

[jim360]

That's almost equally tragic, fearing to live and preferring to die.

I'd again need to press him for more information, which would be a bit tactless, I feel. But you can reassure him I think that there's no need to worry abotu not being allowed to claim any benefits.

[Mamyalynne]

Do Hospitals still have Almoners/Social Workers ? Maybe when out of intensive care and back on a ward they could advise.

[LochNessMonster]

Thinking of you both, do hope he puts threw.

Tail crossed for you.

Love Nessie x

[naomi24]

Thanks all. He's not the easiest man in the world, but I'll do my best for him.

[themas]

He should be entitled to means tested benefits. ESA (unlike Incapacity Benefit, which it replaced) is available in a means tested form as well as a form based on NI Contributions. He should certainly be entitled to that. Also, I assume he rents a property & he should get some housing benefit & council tax support. All of this assumes he lives alone. If he has a wife/partner her income will be taken into account is deciding how much (if anything) he gets. If they have children he or his partner might get Child Tax Credit & possibly (if she works) working tax credit.

Depending on his level if disability he should also get DLA - which is not means tested.

[THECORBYLOON]

Class 2 Contributions do count toward ESA and State Pension, so I don't know why Mrs O is saying otherwise. As others have also said, he may qualify for the income related ESA too. If a person has a terminal condition (which means less than six months to live) they can claim the Highest Rate of DLA. They can claim DLA for help with personal care and/or mobility in addition to any ESA entitlement.