Pension Guarantee Credits, Housing Benefit, Part-Time Job Offer

Man_Overboard_2

Hi, I've been recommended to come on here in order to get some advice.

I became unemployed a year ago, and I am now receiving Pension Guarantee Credits of £142.70 per week (Housing Benefit covers all of my rent and council tax). I am 63 years old, single, and have savings of around £5500, with no other assets.

I have been doing a couple of sessions per week doing voluntary work, and the charity concerned is now offering me a part-time job. The details are not yet clear, but it will be around 20 hours per week at around, or maybe just above, the national minimum wage.

It is possible that the job will only last for around six months, according to whether or not the project is a success.

It seems borderline to me as to whether or not it will be worth my while to accept the job. My biggest worry is that if the job evaporates after just a few months, I will not be able to return to my current position.

I have done the DirectGov Benefits Calculator, and it seems that, although I might be £20 a week better off, I would be obliged to move into the world of Tax Credits, and other 'discretionary' areas.

Can anyone help?

Whiteknight

As a single person you will have a £5 disregard on your earnings.

As long as you do not earn more than £142.70 a week you will still be entitled to the Pension Credit and will still get help with the housing benefit and council tax.

Obviously if you don't want to work for "nothing" or next to nothing then not much help I can offer.

However if you take the job and things don't work out you can always fall back on the Pension Credit.

Man_Overboard_2

Whiteknight wrote: »

As long as you do not earn more than £142.70 a week you will still be entitled to the Pension Credit and will still get help with the housing benefit and council tax

Thank you for the information. Are you saying that if I were to earn £140 per week, I would continue to receive £2.70 Pension Credit, plus 100% of my rent and council tax?

The directGov benefits calculator seemed to suggest that, with part-time earnings of £140 for 20 hours work, I would be better off claiming Working Tax Credits instead of Pension Guarantee Credits, even though my Housing Benefit would be reduced slightly. It did not mention any figure at all in respect of council tax

Whiteknight

If you earned £140 a week take home after tax and national insurance, Pension Credit would input £135 as earnings and the rest would be made up of Pension Credit - up the the £142.70. You would get your rent and council tax as it is now.

You need to make the decision as to whether you would be better off with Working Tax Credit - I am unsure how much you would lose with the council tax etc