DWP payments of £560 for those with a disability or health condition

People who are unable to work due to a disability or health condition could boost their retirement fund.

The Employment and Support Allowance (ESA) can provide financial help if claimants are struggling with living costs or trying to get back into the workforce. ESA can also contribute towards those aiming to claim the state pension upon retirement.

Currently, there are two types of state pensions - the basic and new state pension - which are given based on the claimant's birth date. The full basic state pension requires 30 years of National Insurance contributions, while the new state pension demands up to 35 years for a full claim.

Not making some of these contributions could mean you receive less in state pension payments; however, ESA can help bridge this gap. Besides providing financial support, ESA can also provide Class 1 National Insurance credits.

There are two types of ESA that claimants can receive - New Style and income-related. Income-related ESA can no longer be claimed, and payments will only be made to those who have already claimed it.

Therefore, if you're making a new claim, you will instead be applying for the New Style ESA.

New Style ESA may impact your private pension payments if you receive more than £85 a week from a private pension. In this scenario, half of your private pension income over £85 will be deducted from any ESA payment.

In some cases, your private pension income might be too high to qualify for any cash from ESA payments. However, you could still be eligible for Class 1 National Insurance credits.

ESA is a weekly benefit with rates that vary depending on where you are in the application process. During your assessment period, you'll receive an 'assessment rate' for 13 weeks which will either be £72.90 per week if you're under 25 or £92.05 per week if you're 25 or over.

If your application takes longer than 13 weeks, this assessment rate can continue, but you may receive a backdated amount if it's determined you should have been paid more after the 13-week period.

Once assessed, you'll be placed into one of two groups which will determine how much you're paid. If you're in the work-related activity group, you'll receive £92.05 a week, while those in the support group will get £140.55 a week.

While claiming ESA, you can also receive Universal Credit, although the amount of ESA you get may be deducted from your Universal Credit payments. If you have a long-term health condition or disability, you could also claim Personal Independence Payment (PIP).

Furthermore, if you've been receiving income-related ESA for at least six months, you may be eligible to apply for a Budgeting Loan if you're struggling with everyday costs. However, remember that a Budgeting Loan will need to be paid back eventually, so it's crucial to evaluate your long-term financial situation to see if it's a feasible option.