How is it possible to be better off not working?

EltonJohnFan

Hello everyone,

I've been really busy this morning searching for and applying for as many jobs as I possibly can. In truth, there's not a lot going at the moment and I can only see it getting worse in the near future with all the planned redundances set to take place in my area but anyway, that's another story and I'm trying to remain as upbeat about things as possible. I've been on Jobseekers Allowance for just over six months now, was made redundant and at first was able to claim Contributions Based Jobseekers Allowance but I've now been transferred over to Income Based Jobseekers Allowance after a review took place a few weeks ago to discuss my circumstances. I'm a very badly disabled person and require a lot of extra support outwith work but I do want to find work so that is why I've preferred to claim Jobseekers Allowance instead of Employment and Support Allowance but I find myself stuck in a catch 22 situation because most of the jobs I'm appying for will actually leave me WORSE off than I would be on benefits, just how is that possible!? I currently receive £200.25 per week in Jobseekers Allowance and Disability Living Allowance and another £150 or so in Council Tax and Rent Benefit which means I'd need to find a job that pays me a lot of money to even contemplate work and most of those I'm applying for (or being directed to apply for) just aren't feasible in my situation.

I'm very embarrassed by this situation because I'm so desperate to work and not waste away on benefits. I had a meeting with a Disability Employment Advisor on Monday there as I'd previously had an incident in the Jobcentre and managed to speak with the Office Manager who promised me they'd try their best to give me a little extra support. I found the meeting I had with this woman was very helpful but when we approached the subject of what I call a "liveable wage" she done a calculation on her computer and she actually told me that I'm wasting my time applying for minimum wage jobs because I'd actually be worse off and she couldn't recommend I apply for them in future. When I told her that I had been hounded over the past few months to apply for everything and anything, no matter what it was and even jobs I simply couldn't do due to my disabilities she said that was a little unfair and that the other advisors I'd spoken to should have shown some leniency towards me. I said I'd been made to feel very low about myself and that ahas ffected my confidence but she really gave me some encouragement and said to think about claming Employment and Support Allowance not forever, but in the meantime until the jobs situation improves as she can't see me finding work that makes it worth my while to do. I don't like this situation at all but is this commonplace? I can't understand how I can possible be better off not working than I would be in a full time job, strange situation and one that annoys me greatly. I'd appreciate any words of encouragement you can give, support, hints and tips etc, thank you

passatrider

I think the problem here is that it depends on what you are qualified to do and what sort of jobs you are applying for?

If you are applying for unskilled blue collar jobs then my fear is that you will be stuck in this spiral for the forseeable future. The minimum wage is only £5.85 an hour as it is and with all the planned changes in benefits the future looks very bleak.

I don't know your current financial or vocational situation but have you thought about retraining in another field - could open up many new avenues such as self employment perhaps?

Sorry I could not be any more helpfull

keith1950

Isn't the point that if you take a lower paid job then you will still be due some council tax and housing benefit help.Surely your not saying that you have to take home £350 before you will consider a job? There are many of us struggling by on minimum wage and the goverment needs to take decisive action to change the welfare state mentality however that will probably take a generation to work its way through.Your situation may be different as you are disabled ,however, we have got to weed out the ones that wont even look for work and do not deserve to be handed everything on a plate, if people wont work they should be made to attend training or volunteering work or lose benefits , they should not be just allowed to sit at home taking benefits, their days should be interupted so that being on benifits is not just an easy option.I wish you luck in your search for a job and point out that my rant was not aimed at you however you need to consider lower paid jobs even if that means accepting some means tested benefits.

debrag

mini wage is £5.93 an hour and for a single person I think even on full time wage you can get some HB/LHA plus you will have your DLA and maybe WTC too

MissRose

You do know that you can continue to claim DLA whilst working (as long as the job that you're doing doesn't contradict your care/mobility needs obviously).

In addition to that if the job is low paid you will be entitled to working tax credits with the disability element / severe disability element (depending on level of DLA). Also depending on income you may also still recieve some HB/CTB.

I'm on DLA HRC and LRM and found myself to be considerably better off going to work, not only financially but mentally also. The confidence it afforded me has enabled me to move back into a much higher piad role that relates to my previous career, which I wouldn't have been able to do if I hadn't taken a role a NMW just to get myself back into the workplace.

Would you mind telling me what level of DLA that you're on?

Jowo_2

Model a few scenarios in the Turn2us online benefit calculator, using various wage levels, such as part time NMW, full time NMW and better than NMW, so you can understand the actual impact on your benefits when you find employment. An online PAYE calculator will help you understand how much tax is taken off.

I do believe that some households, such as those with disabilities and with dependents, are better off on benefits than working in low paid employment simply because the level of benefits are much higher than other households, therefore their withdrawal has greater impact. For example, a single parent with 2 kids will get their CT and rent paid, plus receive £200 per week in Income Support, tax credits and child benefit. So there's not much incentive for them to get a shelf stacking job that pays a similar sum and means they expose themselves to travel costs, child care costs and lose 40 hours a week leisure/family time!

looby75

Do realise that if you got on ESA there is nothing at all to stop you looking for suitable work. All it means is you won't be pressured to apply for jobs that are totally unsutable for you to do, and if the DEA I saw is to believed you can get more tailored help on ESA than you can on JSA. So I wouldn't completely dismiss the idea of Claiming ESA.

Good luck.

RazWaz

Another disabled working person here! I started work 4 months ago after 18 months on jobseakers and although I'm only a little bit better off (£50 a week) at least I'm not stuck in the house all day.

You only need to be working 16 hours, and don't have to be over 25 to claim working tax credits if you are on DLA, and if you are working part time you'll pretty much get the full amount of £80+ a week, over £100 if you are on the higher part of DLA. You will also keep your DLA, and some of your housing benefits.

I work 25 hours a week earning £4.92 (I'm 20) and get most of my HB, full DLA, Working Tax credits (with the disability element) and CTB.

Oldernotwiser

You have to look at being "better off" in the wider and long term sense, not just whether you'll have more money in your pocket at the end of the week.

alexandra_cmpbll

Hi, I understand your frustrations as I find myself in a similar situation. By the time I pay rent, council tax and utilities I am actually worse off working! I think if you havent been in this situation, its very easy to judge others. The worry of paying bills and everything else has had a great physical and mental impact on my health. I am happy that there are people who are better off in work, thats the way it should be. I have said before, many people find themselves in expensive private rental properties, through no fault of there own and the government are doing nothing about the lack of affordable housing for people, so many many people find themselves stuck in a rut, go to work which I have chosen to do and have found myself ill anyway with the worry of finances or sit at home and become even iller and vegetate, but know you have a roof over your head!

bunny999

Plenty of people go to work full time and struggle to pay their bills and can't afford to live in expensive private housing. Why should these low paid workers have to pay taxes to support those who are better off not working. The only solution is to cut benefits and raise the NMW. Those poor unfortunates who "through no fault of their own find themselves in expensive rental properties" will then find they no longer have to suffer living in properties that the workers could never afford.