Establishing LCWRA via a “credits-only” claim for ESA

As disabled young people approach adulthood, families want to understand what benefits they’re entitled to. One important but misunderstood step is making a “credits only” claim for Employment and Support Allowance (ESA).

Here we explain what this 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.

In this article

What is a “credits only” claim for ESA?

Many young people in education are refused Universal Credit due to restrictions on claims by students. Sometimes a disabled student can get Universal Credit. However, their chances of getting Universal Credit are much better if they have previously made a “credits only” claim for ESA.

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

It is called a “credits only” claim because while they will start building National Insurance credits, usually they won’t actually receive any ESA payments. (This is because ESA is only payable to people who have worked and paid National Insurance in the past).

Your child will be making a “credits only” claim to force the DWP to carry out a Work Capability Assessment. They are not making a claim to get ESA itself.

Why does this help for Universal Credit claims?

Making a “credits only” claim for ESA allows disabled young people to establish LCWRA from age 16 onwards. Establishing LCWRA in advance will help some students claim Universal Credit in the future.

Establishing LCWRA in advance is a good idea for two reasons.

No work-related conditions in Universal Credit claim

First, if your child stays in full-time non-advanced education beyond the August after their 19th birthday, establishing LCWRA should guarantee that they can get Universal Credit as a young adult from 1 September after they turn 19. It won’t matter that they are on a course.

This is because someone with LCWRA cannot have any work-related conditions attached to their Universal Credit claim. This will prevent the DWP refusing Universal Credit on the basis that their course is not compatible with their claim.

If your child doesn’t establish LCWRA in advance, they can still try to apply for Universal Credit from the September after their 19th birthday. But they may be refused if their work coach:

Breaks in education

Establishing LCWRA early (or just establishing a limited capability for work) will help your child claim Universal Credit despite being on a course or if they have a break in their education. For example, they might move from a non-advanced course to university. They may start a new non-advanced course after a break in studies.

This second point applies to students of any age and in education of any type. However, they must also get a qualifying disability benefit such as Disability Living Allowance (DLA), Personal Independence Payment (PIP), or their Scottish equivalents. If they get a disability benefit and establish LCW before the date their course started, they will be able to get Universal Credit.

Visit our page below for more information on Universal Credit for students.

Teenager wearing helmet at rock climbing wall

Universal Credit for young people receiving education

There are particular rules that prevent most young people in education from being able to get Universal Credit.

Read more

Getting an LCWRA element

Universal Credit claimants who have established LCWRA receive an additional payment (the LCWRA element) in their award.

If your child established LCWRA in advance via a credits only claim for ESA, they will automatically receive this from the first month of their Universal Credit award. Claimants who establish LCWRA while claiming Universal Credit need to wait three months for this payment.

The LCWRA element is paid at two rates. Most new Universal Credit claimants with health problems get the lower rate. If your child meets severe conditions criteria, they should get a higher rate instead. Your child will meet the severe conditions criteria if :

Universal Credit will need to decide whether your child meets this criteria to decide which LCWRA rate to pay. If it’s not clear from the previous ESA assessment that your child meets the severe conditions criteria, the DWP will award the lower rate.

I think my child meets the severe conditions criteria

If Universal Credit pay your child the lower rate of the LCWRA element, but you think they meet the severe conditions criteria, you can ask Universal Credit to reassess them. You can do this via a request in their online journal.

Universal Credit say that in these circumstances, they will need to carry out a new Work Capability Assessment to make a decision on the severe conditions criteria. Depending on circumstances, this may be done via a paper-only assessment or an assessment by phone or in person.

You might wonder: is there any point making a “credits only” claim for ESA now if there is a risk that, once they claim Universal Credit, they are asked to undergo another assessment to get the higher LCWRA element?

The answer is yes, it is still worthwhile making a “credits only” for ESA. In some cases, there may be enough information gathered in the ESA assessment for Universal Credit to make a decision on the severe conditions criteria without the need for second assessment of their own.

However, even if that is not possible, and Universal Credit say that a second work capability assessment is needed, your child should still benefit from having made a “credits only” claim for ESA.

Firstly, it should guarantee they get Universal Credit while studying in the two scenarios outlined earlier on this page. Secondly, they will receive the LCWRA element from the start of their claim, rather than having to wait three months.

Won’t a ‘credits-only’ claim for ESA bring my child benefit and the child elements of Universal Credit to an end?

Making a “credits-only” claim for new-style ESA won’t impact any Child Benefit, Universal Credit or any other benefits you currently get for your son or daughter as a dependent child. This is because a “credits only” claim won’t actually result in any ESA payments. It merely leads to a Work Capability Assessment.

Some parents report DWP staff telling them that the rules prevent them from lodging a claim for ESA for their child while Child Benefit is still in payment. This is not true.

Contact our free helpline for advice if the DWP refuses to allow you to complete a claim for ESA.  

When should I make a claim?

Your child can make a “credits only” claim at any point after their 16th birthday. The earlier they do so the better. On average, it takes around four-five months for a decision on a “credits only” claim. For this reason, try to claim well in advance.

For example, if your child is likely to be starting university, try to make a claim at least six months in advance. Similarly, if your child will be 19 before 1st September, try to claim at least six months beforehand. The earlier that you make a “credits only” claim for ESA, the better the chances that you will have a decision back about LCWRA before your child wants to claim Universal Credit in their own right.

If you claim closer to September, there is a risk they will not establish LCWRA until after they have started their new course. Depending on circumstances, this may mean that they are refused Universal Credit under the student rules.

How to make a claim

A young person who has mental capacity can make an online claim from the GOV.UK website.

If you are acting as an appointee for your child, you cannot make a claim online. Instead the DWP ask you to make a claim via the telephone on:

When you phone this number and choose option 4, you may have a long wait. During this time, a recorded message may say that you can make a claim more quickly online. This does not apply to appointees. An appointee cannot make a claim on behalf of their son or daughter online. You must make a claim using the telephone.

You will need to submit fit notes from your child’s GP as part of the claim process.

What happens during the claim?

Once you’ve lodged a claim for new-style ESA, you’ll get a decision telling you that your child does not qualify for ESA. Don’t be worried by this. A refusal is what you are expecting. Remember: you are making a “credits only” claim not to actually get ESA. You simply want to trigger a work capability assessment.

Once they’ve sent you the decision refusing ESA, the DWP should start the process of organising a Work Capability Assessment. Indeed, they must do this to decide whether your son or daughter qualifies for national insurance credits to protect their future entitlement to a state pension. They still need to do this even if they refuse your child payment of ESA.

They should send you a work capability questionnaire to complete. If you still haven’t received a questionnaire within a couple of weeks, phone the number on your ESA letter. Ask them to confirm that they intend to organise a Work Capability Assessment and how long this is likely to take. If they tell you that they won’t carry out an assessment, seek urgent advice.

Once you receive the questionnaire, complete and return it. You should include any other supportive evidence you have. The DWP may decide to make a decision about your child’s capability for work based solely on the paperwork. Or they may ask your child to have a face-to-face consultation with a health professional.

What happens after the claim?

Unless your child has worked and paid sufficient national insurance contributions in the last two years, they won’t actually qualify for ESA itself.

It can take several months for them to make a decision on your child’s capability for work. Eventually they should contact you to confirm their decision. If they accept that your child has LCWRA, this decision will also be binding when they make a claim for Universal Credit at a later date.

Sometimes ESA will make a decision on a young person’s claim, but fail to send a letter notifying them of that decision. If it has been some time since you have heard back from ESA, contact them to double check any decision has been made.

If the DWP refuse to process a claim

Some parents describe being talked out of making a claim for new-style ESA. DWP staff might tell you that there is no point in making a claim for new-style ESA, as your child won’t get it.

Explain that you know they will not get new-style ESA itself. Instead, you are making a ‘credits only’ claim in order to protect their national insurance record. You have a right to do this under regulation 8B(1) of the Social Security (Credits) Regulations 1975.

In some cases, DWP staff have refused to help parents lodge a claim for new style ESA. They have claimed it is a waste of time and/or staff resources. They have refused to send the parents a link to the electronic claim form needed to complete a claim.

If this happens to you, try to remain calm and polite. Ask for the name of the worker who is refusing to facilitate a claim. Take a record of their name and the date and time of your call. Ask them for the details of where you should send a complaint to. Then seek further advice from the Contact Helpline or from a local benefits advice service in your area.

Related information

Teenager wearing helmet at rock climbing wall

Universal Credit for young people receiving education

There are particular rules that prevent most young people in education from being able to get Universal Credit.

Read more
A young girl in a pink shirt stands outdoors, looking down with a thoughtful expression. She holds the arm of an adult next to her. The scene is sunlit, with other people and objects blurred in the background.

Universal Credit extra amounts

If you claim Universal Credit, you might receive extra amounts depending on your family circumstances.

Read more
Teenager and parent standing face to face

Universal Credit

Universal Credit is a new benefit for people of working age. It is paid both to people who are out of work…

Read more