What families need to know about preparing for Universal Credit

4 mins read

Thursday 14 August 2025

As disabled young people approach adulthood, many families want to understand what benefits they’re entitled to.

One of the most important but often misunderstood steps is making a “credits only” claim for new-style Employment and Support Allowance (ESA).

Here we explain what making a credits only claim for ESA means, why it matters, and how it links to future Universal Credit claims. You’ll find this particularly useful if your young person is remaining in full-time education.

What is a “credits only” ESA claim?

A “credits only” claim for ESA allows a young person with a disability or long-term health condition to:

  • Undergo a Work Capability Assessment (WCA).
  • Have their capacity for work and work-related activity assessed.
  • Establish a limited capability for work (LCW) / limited capability for work and work related activity (LCWRA)
  • Start building National Insurance credits, which count towards future benefits like the State Pension.

It is called a “credits only” claim because while they will starting building National Insurance credits, usually they won’t actually receive ESA payments. (This is because they haven’t worked and paid National Insurance yet).

So why is this important for claiming Universal Credit?

Most young people cannot claim Universal Credit while still in full-time education.

Establishing LCW or LCWRA now can increase your child’s future chances of getting Universal Credit if they remain in education. It will help them in two specific circumstances:

  • If they remain in full-time non advanced education beyond the 31st August after their 19th birthday. Having established LCWRA should guarantee that they can get Universal Credit despite being in education from the 1st September after they turn 19. 
  • They are treated as having a break in “receiving education”. They should be exempt from the restrictions on claims by students so long as they established LCW or LCWRA at some point prior to their new period “‘”receiving education” startin. (They must also get a qualifying disability benefit such as Personal Indepence Payment). 

This is why it’s so important to establish LCWRA early, through a credits-only ESA claim for ESA.

Who can apply?

Your child can make a credits-only ESA claim from age 16, even if they are:

  • Still in full-time non-advanced education. 
  • Living at home and dependent on you.
  • Not eligible for Universal Credit yet due to their education status.

NOTE: If your child lacks capacity, you’ll need to apply as their appointee by phone. You cannot do this online.

How to apply

  • Call ESA on 0800 055 6688, choose option 4 to apply by phone.
  • Ask to make a “credits only” claim for new-style ESA.
  • Provide a fit note (sick note) from your child’s GP.
  • You’ll receive a ESA50 questionnaire to complete and return with any supporting evidence.

You are legally entitled to make a credits-only claim under Regulation 8B(1) of the Social Security (Credits) Regulations 1975. If ESA refuse you, seek advice.

What happens after applying?

  1. You will receive a letter saying your child does not qualify for ESA payments. This is expected.
  2. The DWP should then initiate a Work Capability Assessment. This will the completion of a work capability questionnaire. Your child may also be asked to take part in a consultation with a health professional, either via the telephone or face to face.  This process usually takes three-fourth months.
  3. The outcome of this assessment will hopefully be that your child has a limited capability for work (LCW) – or a limited capability for work- and work-related activity (LCWRA).  
  4. This decision:
    • Secures National Insurance credits.
    • Will be binding on Universal Credit if they claim in future.
    • If they establish LCWRA rather than LCW, it will also mean they get higher Universal Credit payments.