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ESA Permitted Work - The Unanswerable Question?

OK, here's one that seems to be stumping everyone at JobCentrePlus and our local BDC, but maybe someone knows the answer.

Mrs B is currently on ESA, and is considering starting some Permitted Work for a temp agency.

She knows the rules about "no more than 16 hours a week" and "no more than £97.50 a week", but are these hard and fast per calendar week, or are they averaged out?

I ask, because she's been offered a 16-hour month-long assignment doing some filing, which would be £7 an hour (£112 a week). Of course, before and after this assignment, she'd be doing no work, so the weekly average would end up below the limit, even though the earnings in the weeks in which she actually works would be slightly above.

Will they check? Will they care? Does she need to ask the agency to reduce the wage below £6.09 an hour so she doesn't hit the finite weekly limit?

Comments

  • Yes they'll check and yes they care. It is per week, not averaged out. The agency cannot reduce the wage below £6.08 per hour as that would make it below the national minimum wage and therefore illegal.
  • The only way you can be paid less than the NMW is if the NMW does not apply to you i.e. Self-employed. If your earnings exceed the earnings limit for permitted work then you must inform the DWP of the change of circumstances it is up to them if you qualify. Moreover, you mention that the shift is for 16 hours per week, how many hours per week does the claimant work as an average? If it is 16 then this is not permitted work. You must work less than 16 hours for permitted work. If you can work 16 hours then the claim would be for Working Tax Credits and not permitted work. Although, if working 16 (or more) hours per week then the ESA claim would cease. However, the 16 hour rule does not apply if doing Supported Permitted Work. If you are doing Supported Permitted Work then you could in theory work 16 hours at NMW claim ESA and claim WTC.
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