JC v Secretary of State for Work and Pensions (ESA)
[2024] UKUT 13 (AAC)
Secretary of State for Work and Pensions v NC
26 May 2023
[2023] UKUT 124 (AAC)
Upper Tribunal
A man's ESA payments were stopped while he was in prison. The first court said he should still get paid. The higher court disagreed, saying the rules meant his payments were correctly stopped. The higher court also said the government needs to decide if he should get any money for after he left prison.
Key Facts
- •Claimant awarded ESA in 2014.
- •Claimant imprisoned in UK from January 3, 2020, to December 21, 2020.
- •Secretary of State suspended ESA payments on January 15, 2020.
- •Secretary of State decided on January 18, 2021, that claimant was not entitled to ESA from January 3, 2020.
- •Claimant appealed, arguing for reinstatement of ESA payments upon release.
- •First-tier Tribunal held claimant remained entitled to ESA during imprisonment.
- •Secretary of State appealed to the Upper Tribunal.
Legal Principles
Basic condition of entitlement to ESA is 'limited capability for work'.
Welfare Reform Act 2007, section 1(3)(a)
Disqualification for receiving contributory ESA during imprisonment.
Welfare Reform Act 2007, section 18(4)(b)
Regulations can treat a claimant as having or not having limited capability for work.
Welfare Reform Act 2007, Schedule 2, paragraph 1(a)
Claimant treated as not having limited capability for work if disqualified for contributory ESA during imprisonment for over 6 weeks.
Employment and Support Allowance Regulations 2008, regulations 159-161
Definition of 'penalty' in relation to ESA disqualification during imprisonment.
Employment and Support Allowance Regulations 2008, regulation 160(5)(c)
A supersession decision must determine entitlement up to the date of the decision.
Sections 9 or 10 of the Social Security Act 1998 and regulation 3 or 6 of the 1999 Regulations
Outcomes
Secretary of State's appeal allowed.
First-tier Tribunal erred in law by misinterpreting the definition of 'penalty' in the 2008 Regulations. Claimant was disqualified from receiving contributory ESA and lost entitlement due to imprisonment exceeding six weeks.
First-tier Tribunal decision set aside.
Error of law.
Claimant disqualified for receiving contributory ESA from January 3, 2020, to December 21, 2020.
Imprisonment constituted a 'penalty' under the regulations.
Secretary of State must decide on claimant's entitlement to income-related ESA from January 3, 2020, to December 21, 2020, and to ESA from December 22, 2020.
Original decision was defective in not addressing entitlement after release from prison.