Can I earn money without losing benefits?

Echo23

Hi, I'll try to keep it brief. Basically we don't have enough money coming in to cover our outgoings and things like clothing, days out,birthdays and Christmas are just not going to be possible to afford without extra money coming in. My husband is disabled and is in receipt of DLA and ESA. I get Carer's allowance for looking after him, child benefit for two children and Child tax credit. We also get housing benefit and council tax reduction benefit (still pay some of the council tax) my daughter gets free school meals and a free school bus pass (this is payable if not in receipt of benefits). My question is, can I work a few hours a week and not lose these benefits? I really need some advice but don't know where to turn. Thanks in advance.

pmlindyloo

Echo23 wrote: »

Hi, I'll try to keep it brief. Basically we don't have enough money coming in to cover our outgoings and things like clothing, days out,birthdays and Christmas are just not going to be possible to afford without extra money coming in. My husband is disabled and is in receipt of DLA and ESA. I get Carer's allowance for looking after him, child benefit for two children and Child tax credit. We also get housing benefit and council tax reduction benefit (still pay some of the council tax) my daughter gets free school meals and a free school bus pass (this is payable if not in receipt of benefits). My question is, can I work a few hours a week and not lose these benefits? I really need some advice but don't know where to turn. Thanks in advance.

Depends on how many hours a week you work and how much you earn.

Carer's allowance has their own rules. (goggle for more information)

If you are on a joint claim for income based ESA then the earnings will be deducted from the ESA minus a £20? disregard (not sure of the exact figure)

As long as you receive some income based ESA then you would still be automatically entitled to the current HB and CT reduction.

Tax credits may have to be notified - depends on what you earn.

You could try putting a couple of different scenarios into the calculator on https://www.entitledto.co.uk for a fairly good idea.

Is your OH on contribution based ESA with you added and then getting an income based 'topup'?

If he is, since the Carer's Allowance is counted as income already it may be a close call.

If you give us some figures we may be able to help (need to know if ESA is made up of contribution based ESA and an income based 'top up' for you - should be on the award letter) plus number of hours and pay.

Echo23

Thank you for your reply. It sounds like an absolute minefield. I'll try the link you suggested. It doesn't help that I'm going about this the wrong way. Would be easier if I had a job lined up and knew hours and rate of pay but I'm working backwards, finding myself short of money and wanting to know how much I could potentially earn without losing out. Realistically I think an extra 50-60 pounds a week would see us ok. I believe that the ESA is all income based (would that be right?) and I am included in the claim.

pmlindyloo

You really need to know if your husband is receiving contribution based ESA in his own right.

Was he working before he was placed on ESA and which group is he in?

All the information you need should be on the original ESA award letter.

HappyMJ

Echo23 wrote: »

Thank you for your reply. It sounds like an absolute minefield. I'll try the link you suggested. It doesn't help that I'm going about this the wrong way. Would be easier if I had a job lined up and knew hours and rate of pay but I'm working backwards, finding myself short of money and wanting to know how much I could potentially earn without losing out. Realistically I think an extra 50-60 pounds a week would see us ok. I believe that the ESA is all income based (would that be right?) and I am included in the claim.

It's only £20 a week. To get an extra £50-£60 a week you would need to earn about £400 (very approximate guess based on my own circumstances) a week more. You would lose all of your ESA and all of your tax credits, all of your housing benefit and all of your council tax reduction but you would be £50 a week better off. As you would need to work full time you would lose your carers allowance and your children would lose the free school meals.

To get a more accurate figure than above you need to earn £50 more than the total of all of your "income based" benefits to be £50 a week better off.

Mojisola

Echo23 wrote: »

Basically we don't have enough money coming in to cover our outgoings and things like clothing, days out,birthdays and Christmas are just not going to be possible to afford without extra money coming in.

As well as looking for extra income, have you done put an SOA on the Debt-free Board?

You would be very unusual if the experienced people on there couldn't help you save some of the money you're now spending.

pmlindyloo

Looking at your previous posts your husband seems to have been on Income Support (for disability) before being transferred to ESA. This would mean that it would be an income based joint claim.

So, presuming you worked for £50 a week it would all be counted as income and taken off your ESA (except for the £20 a week disregard) so, as Happy MJ says you would only be £20 a week better off. By the time you take into account possible travelling and other expense you would not be that much better off.

What I suggest you do is have a thorough read of this website and try to reduce your expenditure. You could post on the Debtfree Wannbe forum (not just for those on debts) and post a statement of affairs (someone will explain how to do this).

The good people on there will then help with reducing your expenditure.

Just one example, are you on the lowest rates for your utilities? Start by reading all the relevant topics on the blue band at the top of this site. If you read some of the debtfree diaries and moneysaving forums you will see that people are incredible at saving money and getting good deals.

Darksparkle

Mojisola wrote: »

As well as looking for extra income, have you done put an SOA on the Debt-free Board?

You would be very unusual if the experienced people on there couldn't help you save some of the money you're now spending.

I would second this.

I have no idea how much your ESA, housing benefit or council tax is but the carers allowance, tax credits, child benefit, DLA (based on previous post) are £290 per week.

WillowCat

Is your husband able to do any work? Depending on which group he is in he may be able to do 'permitted work' - if he is in support group then he can earn up to £115.50 per week providing he works for less than 16 hours per week. This will not affect any of your benefits.

If it is only you able to work then as above, you can earn the £20 disregard and anything over that is taken off pound for pound until you are no longer entitled to income based benefits, then you keep a proportion before HB/CTR and CTC are removed.

I have sympathy - am in a similar position (though no children). It's one of the benefits of universal credit that you able to keep a proportion of your earnings, though sadly no sign of it getting to my area for people with limited capability for work yet.

Echo23

Thank you all for your help. I really appreciate it. I will certainly look into getting some help reducing my outgoings. Unfortunately my husband isn't able to work at all at present so just down to myself to make any changes (or not) certainly lots to think about. Seems daft that the disabled partner can bring extra money in but not the able bodied partner.

TELLIT01

The idea behind the claimant being able to do limited work is to help them towards fuller employment whilst supporting their limitations.