Benefits for people affected by dementia of working age

What benefits are available for people affected by dementia of working age?

If you are of working age and you are affected by dementia, there are several benefits you may be entitled to:

• Universal Credit
• Employment and Support Allowance (ESA)
• Statutory Sick Pay

You may also be entitled to a disability or mobility benefit.

2026/27 rates for working age benefits

What is Universal Credit?

Universal Credit is now available in all areas. It has replaced many older benefits, known as ‘legacy benefits’, including:

• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Housing Benefit 
• Income Support 
• Working Tax Credit 
• Child Tax Credit

No new claims can be made for these six legacy benefits, except for Housing Benefit in some situations. Other working age benefits such as Council Tax Support, disability benefits and benefits based on your National Insurance contributions will continue to be available.

Universal Credit is managed by the Department for Work and Pensions (DWP). It has many rules that are similar to Income Support, ESA or Housing Benefit. These include savings limits, assessing the finances of couples and exemptions from looking for work if you’re too ill to work or if you are caring for someone.

However, there are some significant changes:

• Universal Credit is paid monthly in arrears (meaning payments cover the previous month). You can claim an advance for the first month, if needed.
• The application process for Universal Credit is almost fully online.
• Universal Credit can also be used as a top-up to wages for people who work.
• Universal Credit is made up of different parts (called ‘elements’). There are elements for the person making the claim (and any partner), children and housing costs, as well as extra amounts if you’re considered unfit for work and work-related activity, or if you’re a carer.

If you are a couple where one person is under pension age and the other is over pension age, and you need to top up your income, you will need to claim Universal Credit instead of Pension Credit.  

What is Employment and Support Allowance (ESA)?

Employment and Support Allowance (ESA) may be claimed by anyone under the State pension age who has limited ability to work because of an illness or a disability. This is sometimes known as New-Style ESA.

How much support can I get with Universal Credit or ESA?

After your initial claim for ESA or Universal Credit, there will be a work capability assessment to decide how your illness or disability affects your ability to work. The first part of this assessment will look at whether you have a limited capability to work and therefore qualify for ESA or Universal Credit on health grounds. 

The second part of the assessment will decide what level of work-related activity you can do. If you can complete some work-related activity (such as training courses or voluntary work), you will be placed in the ‘work-related activity group’ (ESA) or ‘limited capability for work group’ (Universal Credit). 

In these groups, you will be expected to complete activities such as attending interviews at the job centre. During these, you’ll be asked about your condition and your progress with being able to work or look for work. 

If you can’t work or complete work-related activity, you will be placed in the ‘support group’ category for ESA. For Universal Credit, this is the ‘limited capability for work and work-related activity group’.

How much money will I receive on ESA?

The amount of ESA you may receive depends on:

• your ability to work
• your past National Insurance contributions 
• how long you have been claiming, and
• whether you are entitled to one or both types of payment - income-related ESA and contributory ESA.

The payment can be backdated for up to three months and will continue until you are able to work or look for work.

It is important to seek advice if you think that you are not getting the right amount of money. 

Both types of ESA are paid at a lower rate for the initial 13-week assessment period. Then if you are still entitled, payment either continues at that rate or is paid at a higher rate if you aren’t expected to prepare for a return to work.

If you’re eligible for ESA or Universal Credit, you may also be entitled to other benefits such as help with housing costs and prescriptions.

What is Statutory Sick Pay?

Statutory Sick Pay is paid by employers to employees below pension age. It's paid at a flat rate (or 80% of average earnings, whichever is lower) and is taxable. It is paid for up to 28 weeks.

Am I entitled to Statutory Sick Pay?

To qualify, you must be employed, have done some work for your employer and been ill for at least one full working day.

If you know you will continue to be unable to work, you can start a claim for contributory ESA up to three months before the end of your Statutory Sick Pay. To ask for Statutory Sick Pay in England and Wales, you can complete the SC2 form. You do not need to fill out a form in Northern Ireland. 

Your employer will then need to complete the SSP1 form. The ESA payments will then begin when your Statutory Sick Pay ends.