Produced by Social Firms UK with benefits information provided by Judy Scott Consultancy © Copyright Social Firms UK 2010 Benefit rules are very complex,

Produced by Social Firms UK with benefits information provided by Judy Scott Consultancy© Copyright Social Firms UK 2010

Benefit rules are very complex, but changes to Housing Benefit from 1st April 2010 brought a welcome change.

Many people are now able to earn and keep up to £97.50 a week, as well as their incapacity-related benefits.

Who is this guide for?This guide is written for you if you get benefits because a health condition or disability makes it difficult to work but you would like to work part-time.

You can use it to work out what you can earn before the “benefits trap” affects you.

Who else might use this guide?You might also want to discuss it with a friend, family member, support worker or employer.

What does ‘Permitted Work’ mean?If you get benefits because a health condition or disability makes it difficult to work, you can earn some money before your benefits are affected. Jobcentre Plus calls this ‘'Permitted Work'’.

It means you can work under 16 hours a week and the amount you can earn depends on the type of benefit you get and your personal circumstances.

How to use this online guide1. Click the green “Go To Guide” button

2. Answer the questions by clicking Yes or No and follow the arrows to find out:- what you need to do; and- how much you can earn before your benefits are affected.

3. To quit this guide use the ‘ESC’ button on your keyboard.

4. You can download the guides in PDF format by clicking here.

5. You can visit our website at any point by clicking the Social Firms UK logo in the top right hand corner.

‘Permitted Work’

WHAT YOU CAN EARN BEFORE IT AFFECTS YOUR BENEFITS

Go To

Guide

http://socialfirmsuk.co.uk/


Do you get a benefit because a health condition or disability makes it difficult for you to work?

Yes No

‘Permitted Work’WHAT YOU CAN EARN

BEFORE IT AFFECTS YOUR BENEFITS

From 1 April 2010 some people can earn more money and still keep all of their benefits - if they work under 16 hours a week.

The ‘Permitted Work’ limits shown in the charts are correct from October 2010

go back to start




Yes

Employment & Support Allowance – Support

Group (ESA-SG).

Employment & Support Allowance – Work

Related (ESA-WR).

Incapacity Benefit (IB)or Severe Disablement

Allowance (SDA).

Income Supportfor incapacity.

If you get any of the benefits below you can earn up to £20 per week if you notify Jobcentre Plus on Form PW1.To see how much more you could earn and keep, click below on the main benefit you get.

If a couple living together both get incapacity-related benefits, their joint earnings must not exceed the relevant limit. Both partners CANNOT each earn up to the limit.





go back to start re-do




Group (ESA-SG).


Related (ESA-WR).


Allowance (SDA).


Click hereto find out how

you canearn up to £97.50 a week and keep the same benefits.







Yes





Click here to find out how

you can earn up to £97.50 a week

and keep the same benefits.


Group (ESA-SG).

Employment & Support Allowance – Work Related (ESA-WR).


Allowance (SDA)



Yes











Group (ESA-SG).


Related (ESA-WR).


Allowance (SDA).


Do you get Income Supporttop up or Income Support

for mortgage interest?

No Yes






re-do go back to start


Yes




Click here to find out how

you can earn up to £97.50 a week

and keep the same benefits.


Group (ESA-SG).


Related (ESA-WR).


Allowance (SDA).




No





go back to start

re-do



Yes





Group (ESA-SG).


Related (ESA-WR).


Allowance (SDA).




Yes

Click here to see how Income Support is affected

if you earn up to £97.50 a week but other benefits stay the same.


Yes











Group (ESA-SG).


Related (ESA-WR).


Allowance (SDA).


Click here to see how

your benefit will be affected if

you earn between £20

and £97.50 a week.




The 'Permitted Work' limits shown in the charts are correct from October 2010



Yes






No

This guide is not for you. Click here to see

who this guide is for.

'Permitted Work’



The 'Permitted Work' limits shown in the charts are correct from October 2010

re-do



Do you get Employment & Support Allowance – Support Group?

NoYes

Chart 1

What you can earn if you• work under 16 hours a week and

• get Employment & Support Allowance – Support Group





As long as you notify Jobcentre Plus on form PW1you can earn up to £97.50 per week, indefinitely.

This won’t affect your Employment & Support Allowance,

Housing Benefit, Local Housing Allowance or Council Tax Benefit, You will be better off by £97.50 less any tax due.

Yes

Chart 1




Click here to print this flowchart

To Exit, press the ESC key on your keyboard.




No

This chart is not for you.Please click here and select the main

benefit you get.

Chart 1



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re-do





Which benefit do you get?

Employment & Support Allowance – Work Related (ESA-

WR).

Yes No

Chart 2What you can earn if you

• work under 16 hours a week and •get Employment & Support Allowance – Work Relatedor Incapacity Benefit or Severe Disablement Allowance

go back to start

Do you get personal support to help you get and stay in a job?



Is this provided by someone who works for any of the following – NHS, local authority, voluntary or community organisation, Social Firm?



Yes

Yes No










WR).

Yes

NoYes

Yes





Have you and your support worker completed Form PW1, which you can get from Jobcentre Plus?







WR).

Yes

As long as you notify Jobcentre Plus on Form PW1

you can earn up to £97.50 per week for up to 1 year.

This won’t affect your ESA, IB, SDA, Housing Benefit, Local Housing

Allowance or Council Tax Benefit.You will be better off by £97.50 less any

tax due.Important - see Note 1

No

Yes

Note 1 The 1 year period starts from the first week you earn over £20. It runs even if you earn over £20 a week just once during that year. Always keep a note of when the year started because the maximum amount you can earn after the year ends goes back to £20 a week. After another year on the £20 limit, if you’re still getting the same benefits, you can earn up to £97.50 a week again.











Yes

If you notify Jobcentre Plus on Form PW1 and they agree, you can earn up to £97.50 per week, indefinitely. This won’t affect your ESA, IB, SDA, Housing Benefit, Local Housing Allowance or Council Tax Benefit.You will be better of by £97.50 less any tax due.

Yes

Yes



go back to start

re-do










No

















Yes






No













Yes






No

Yes













Incapacity Benefit (IB) or Severe Disablement Allowance (SDA)

YesNo



go back to start

Jobcentre Plus has said you DO NOT need to keep having

medical assessments.





Yes No

No











Yes

Yes No

No












Yes

NoYes

Yes

No














Yes


Yes

Yes

No















Yes



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No






No















Yes






No

No

















Yes






No

Yes

No











Do you get Income Support for incapacity as your main benefit for living costs?

Yes No


• work under 16 hours a week and • get Income Support for incapacity.





Yes

Yes

No









Yes

Yes

No

No










Yes

Yes

Yes

No

No











Yes

Yes

Yes

Yes

No

No












If you notify Jobcentre Plus on Form PW1. and they agree, you can earn up to £97.50 a week, indefinitely. BUT you’ll only be £20 a week better off because your Income Support will be reduced for earnings over £20 pw.

Yes

Yes

Yes

Yes

No














This chart is not for you.Please click here and select the

benefit you get.

No









If you notify Jobcentre Plus on Form PW1. and they agree, you can earn up to £97.50 a week, indefinitely. BUT you’ll only be £20 a week better off because your Income Support will be reduced for earnings over £20 pw.

Yes

Yes











If you notify Jobcentre Plus on Form PW1 you can earn up to £97.50 a week for up to 1 year. BUT you’ll only be £20 a week better off because your Income Support will be reduced if you earn over £20 pw. Important see note 1.

Yes

No

No





medical assessments










Yes

Yes

No













Yes

No



Yes

Yes

No













You are allowed to work under 16 hours a week. But if you work and get Income Support top up or Income Support for mortgage interest as well as Incapacity Benefit or Severe Disablement Allowance, you will lose any Income Support over £20.

But you can keep your Incapacity Benefit or Severe Disablement Allowance plus your Housing Benefit, Local Housing Allowance and Council Tax Benefit in full.

Look at this example:

Frankie has been offered a job at a local Social Firm paying £80 after tax for 12 hours work a week.

Frankie has told Jobcentre Plus about the job and they have said that it is OK, because it’s for less than 16 hours a week and he would earn less than the £97.50 per week limit.

At the moment he gets £ 213.45 a week in benefits.This is made up of:Severe Disablement Allowance £ 66.55Income Support top up £ 26.90Housing Benefit and Council Tax Benefit £120.00

If Frankie takes the job he would only lose £26.90 of Income Support but keep all the other benefits and, of course, his earnings.

So if he takes the job, his weekly income would be £266.55.

ExampleWhat you can earn if you

• work under 16 hours a week and• get Incapacity Benefit or Severe Disablement Allowance and

Income Support top up or Income Support for mortgage interest

go back to start

IMPORTANT: Now click here to see whether you can earn up to £97.50 a

week for up to 1 year or indefinitely.

Click here to print this page.



Documents

Produced by Social Firms UK with benefits information provided by Judy Scott Consultancy © Copyright Social Firms UK 2010 Benefit rules are very complex,