Permitted Work - freelance client overpaid me, how much trouble am I in?

sonyicf

I've been on the Permitted Work scheme for a few years, first while on Incapacity Benefit and latterly since they transferred me to ESA (I'm in what I think is termed the Support group because of the severity of my condition).

Unlike most people on Permitted Work, I work freelance, which the system isn't really designed for - often payment comes in months after the actual work was done, and I'm not being paid the same amount every time. When I'd been doing PW for a while they decided to put me in the £20 income limit group (as opposed to the, I think, £92-per-month limit I'd had before) because they saw how infrequently and variably I was being paid.

They suggested that we average my payments so that I could receive £80 per month, and that's mostly worked well, but it does mean that when I'm owed a payment for over £80, I have to disclose my ESA/PW situation to clients and hope they're reasonable about it, which is always nerve-wracking because there is so much prejudice about benefits claimants as it is. Also, as anyone who has ever worked freelance will know, it's sometimes very difficult to actually get the payments you're owed!

Yesterday I re-invoiced a client who I'd originally invoiced in December. As the payment was for £100, I'd sent them two invoices (£80 and £20) asking for these to be paid 28 days apart, and explained the PW situation in the cover email. I never saw the payments come in. Well, this morning they've emailed back saying that they paid me £100 three months ago - checked my bank account again, and indeed, there's a £100 automatic payment in there on the date they mention, which I presumably missed because I would've been scanning for £80 and £20 sums. It was a bad time for my health and I accept that I dropped the ball there.

The problem is, this means that I've received an overpayment, which is against the Permitted Work rules - and worse, it's three months ago! In an ideal world, I'd ping the payment back to the client explaining that I'm unable to accept it for the reasons earlier specified and asking them to send £80/£20 sums 28 days apart. I'd then call the Permitted Work office and level with them, apologise profusely and tell them that my next statement of income will be with them on [relevant date] detailing the correct payment that I will by then have received.

But it's obviously not an ideal world - I've got nothing but praise for the Permitted Work staff; they've been very supportive in explaining the system to me in the past, and letting me average my payments out, and generally not yelling at me when I've sometimes been late with my statement of earnings and have rung them up in a panic to explain that it's in the post. But an overpayment may not be a situation where they're allowed to use their discretion, and I'm terrified that if I tell them what's happening, my benefits will get stopped. My partner's recently been told he might lose his job, and we can't afford for any of this to happen. I'm scared to death because the three-month gap between the payment and me noticing makes me look so guilty. If anyone can advise on what I should do, I would be most grateful.

TELLIT01

For the sake of 20 quid I wouldn't say anything. It's certainly not the hanging offence which you seem to be worrying about. I would question why they put you on the £20 per week option. If you are in the Support Group you can operate within the Higher Limit rules without time limit. See the ESA section of this link http://www.disabilityrightsuk.org/work-people-living-disability-or-health-conditions

sonyicf

They put me on the £20/week limit back when I was still on Incapacity Benefit - would have to check my old diary, but I believe that was in 2009. It wasn't discussed with me beforehand; I just remember getting a letter out of the blue, and then when I rang them to clarify it they told me it was actually better for me given the nature of my income, and then they told me about the averaging and so I thought it must be all right.

I wonder if the rules were different then - I think I actually was exempt from the personal capability assessment for IB in those days, but perhaps that exemption didn't apply re: Permitted Work back then?

In any case, you've given me hope - I notice that if I had been on the Higher Limit (£104 per week? Dizzy heights!!) this whole thing wouldn't even have been an issue... so now I'm trying to get hold of the Permitted Work office by phone, but wouldn't you know it, for once nobody's picking up...

Blackpool_Saver

That £20 hasn't been increased for years, it's time it was

rogerblack

sonyicf wrote: »

In any case, you've given me hope - I notice that if I had been on the Higher Limit (£104 per week? Dizzy heights!!) this whole thing wouldn't even have been an issue... so now I'm trying to get hold of the Permitted Work office by phone, but wouldn't you know it, for once nobody's picking up...

Legislatively, there is no way to 'put you on' one or the other.
If you are in the support group, and doing permitted work, you are doing permitted work.
The question then arises of if the permitted work you are doing falls into one of the categories - there is no requirement that you notify them up-front of the changes in hours as you move into and out of permitted work higher level to lower level.

This matters if you are in the work-related group, where if you earn 21 pounds one week, then in the 53rd week to the 105th week, you can't do any permitted work higher level - to 16h/102 pounds that is.