ESA Permitted work - self employment

littlerat

To cut a long story short, Im looking into trying to get back into work but have been hesitating as I've not been ready to cut all support as I don't know how well I'm going to cope.

Anyway, been looking into permitted work and have read I may be able to keep getting ESA for up to 26 weeks while I start a business.

Anyway I've found for part "

• self-employed work done whilst you are 'test trading' for up to 26 weeks with help from a self-employment provider arranged by Jobcentre Plus."

May be allowed - but that's all the info I can find! I was wondering how I would go about seeing if I could do this? Is it as simple as phoning the job centre to speak to an advisor? Is there anything else I'd need to do or to know?

Just looking for any extra info!

rogerblack

I understand this to have been a program that is no longer running in most places.

-BA-

littlerat wrote: »

To cut a long story short, Im looking into trying to get back into work but have been hesitating as I've not been ready to cut all support as I don't know how well I'm going to cope.

Anyway, been looking into permitted work and have read I may be able to keep getting ESA for up to 26 weeks while I start a business.

Anyway I've found for part "

• self-employed work done whilst you are 'test trading' for up to 26 weeks with help from a self-employment provider arranged by Jobcentre Plus."

May be allowed - but that's all the info I can find! I was wondering how I would go about seeing if I could do this? Is it as simple as phoning the job centre to speak to an advisor? Is there anything else I'd need to do or to know?

Just looking for any extra info!

Test trading is a little different to permitted work.

Test trading is essentially trading at full strength, trying to build up your business. However, you cannot take an income from the business during this period of 6 months. The external provider would manage your finances alongside you (I believe as joint signatory) and income from the business could only be used to further the business. The external provider doesn't take a penny of your income but they are expected to monitor it to make sure you aren't spending inappropriately.

Here's the catch. Test trading isn't available nationwide particularly for ESA claimants. You would need to ask your local Jobcentre Plus whether there is a provider operating the contract for ESA claimants in your region.

Now onto permitted work. Permitted work is the ability to work up to 16 hours (15.59 to be pedantic) per week whilst earning no more than £95 per week. I would urge anyone contemplating permitted work on ESA to double check whether they are on Income Related or Contribution based ESA just in case means testing is taken into account.

Permitted work can be undertaken doing self-employed or employed work. A word of caution:

http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/esa/DG_171909

The link above explains permitted work but I don't like the "16 hours on average" statement. In my experience (not insubstantial), the Decision Makers do not like fluctuation in hours whereby you might have 30 hours in one week and nothing in the next. Don't forget you are after all still on a health related benefit and demonstrating working 30 hours in a week too often isn't going to do you any favours. Keep it below 16 and use it as the stepping stone in building your stamina, as it was designed to be.

One last thing: once the 12 month clock starts ticking on permitted work, it doesn't stop. This means that, if you stop working for a period (say 2 months), for whatever reason, that 2 months is not added on to the end of your 12 month window.

Sorry for the long post but hope it helps. Hope I haven't missed anything but I am sure others will contribute to the thread too.

littlerat

Thanks - I was looking into self employment to try, don't mind if it's test trading or as permitted work, I just couldn't see anything else about self employment as permitted work - and it would definitely be under 16 hours for a while, if I get well enough that I can go over that I won't want/need to be on ESA!

I notice it says "Although you do not need permission to do Permitted Work, you must check that the work you want to do is allowed under the Permitted Work rules. You should discuss this with your personal adviser." - so I take it when I feel ready to try I just phone up and tell them to cover my own back?

Thanks!

-BA-

Absolutely yes. You can never go wrong keeping Jobcentre Plus up to date. You will probably be asked to complete a PW1 form initially follow by a PW6 at 6 months. They are straight forward forms just asking you the basics about the job and what you expect to earn.

Garlicbread

Hi Little Rat. I've just gone through this process as I had the opportunity to work 6 hours a week and I felt this would help me to see if I'm capable of doing some work. I basically rang up the benefits delivery centre and they sent the form mentioned by BA - a PW1. It's a very straight forward form that asks how many hours you intend to work and the weekly rate of pay. A decision maker will review the form and then you will receive a letter back to let you know of the decision. This is just a standard letter - it doesn't say 'we have reviewed your application for permitted work'. It's more of a normal change in circumstances letter that outlines entitlement to benefit. I also received a tax code notice from inland revenue to ensure I would pay the correct amount of tax.

That's all there is to it really. Good luck with what you decide to do!

PS its a good idea to ring the benefits people to check they have received the form. The first one I sent never got there, so I had to send a duplicate.

littlerat

Thanks BA and Garlicbread Sounds pretty straightforward! Im probably looking at maybe 6 or 8 hours a week at most to begin with so should all be ok!

Thanks for your replies!

tinktinktinkerbell

its done through inbiz, you get 6 months test trading then you are on your own (well they will help if you need it like lol)