Help, So Confused!!

Missy606

I'm currently not working and haven't worked for nearly 18 months. I currently claim the following benefits.

ESA Support Group

Universal Credit

PIP Standard Rate and Mobility Standard Rate

Limited Capility for Work

Council Tax Benefit

I'm in a situation now that I owe around £10,000 and I'm struggling on the amount of benefits im claiming to keep paying the mortgage. I am now entitled to (smi). Which would help with around £95 each month. One of my old managers has asked to see me about working possible bank hours and I was wondering which benefits would be affected. I've had a good look and it's all very confusing for me. If I would still get most of my benefits would the amount I also receive from them go down? I need to know, although I'm not ready for work yet, whether I would be worse off working around 15 hours a week or just staying on all my benefits. Or if possible would I be better off? As I know with some you can work around 15 hours. I'm sorry to ask this but I just can't work it all out.

Many thanks

Mrsn

As I understand it PIP won’t be affected but you universal credit will be as they make a 63 pence deduction per £1 earned. I’m sorry I don’t know enough about the other benefits to suggest what might happen to them.

Spoonie_Turtle

UC has a work allowance before 63% is deducted of your income (as you have LCW). It is lower if you get help with housing than if you don't but I don't know if SMI counts, or even if you'll be able to receive SMI if you have income.

[There are also Permitted Work rules for ESA but I don't know much about those so will leave that for someone who *does* know ]

poppy12345

I'm assuming the ESA is Contributions based or New style ESA? Permitted work rules apply here and you must work less than 16 hours per week and not earn anymore than £131.50. https://www.entitledto.co.uk/help/Permitted-Work-Rules

For your UC then you'll have a work allowance which will be £503 per month because you don't receive the housing element but i'm unsure how this works against the ESA permitted work rules.

SMI then you won't be entitled to this if you have any earned income during an assessment period.

https://www.entitledto.co.uk/help/Support-for-mortgage-interest-Universal-Credit

Alice_Holt

poppy12345 said:

SMI then you won't be entitled to this if you have any earned income during an assessment period.

https://www.entitledto.co.uk/help/Support-for-mortgage-interest-Universal-Credit

    And in a particularly unpleasant twist, the 39 week wait is reset if there is any earned income.

   Here are the words of DWP minister Tomlinson to the H of C in Jan last year: 

"We operate a zero earnings rule for Universal Credit in Support for Mortgage Interest (SMI). Receiving any earned income during the wait period or during receipt of SMI loan payments will mean that the claimant will not receive loan payments. The zero earnings rule requires claimants to satisfy a waiting period of nine consecutive Universal Credit assessment periods with no earned income before the claimants can receive loan payments."

poppy12345

Alice_Holt said:

poppy12345 said:

SMI then you won't be entitled to this if you have any earned income during an assessment period.

https://www.entitledto.co.uk/help/Support-for-mortgage-interest-Universal-Credit

    And in a particularly unpleasant twist, the 39 week wait is reset if there is any earned income.

   Here are the words of DWP minister Tomlinson to the H of C in Jan last year: 

"We operate a zero earnings rule for Universal Credit in Support for Mortgage Interest (SMI). Receiving any earned income during the wait period or during receipt of SMI loan payments will mean that the claimant will not receive loan payments. The zero earnings rule requires claimants to satisfy a waiting period of nine consecutive Universal Credit assessment periods with no earned income before the claimants can receive loan payments."

Thanks, that's what i thought but didn't want to add that information because i wasn't 100% sure.

Spoonie_Turtle

poppy12345 said:

I'm assuming the ESA is Contributions based or New style ESA? Permitted work rules apply here and you must work less than 16 hours per week and not earn anymore than £131.50. https://www.entitledto.co.uk/help/Permitted-Work-Rules

For your UC then you'll have a work allowance which will be £503 per month because you don't receive the housing element but i'm unsure how this works against the ESA permitted work rules.

SMI then you won't be entitled to this if you have any earned income during an assessment period.

https://www.entitledto.co.uk/help/Support-for-mortgage-interest-Universal-Credit

In that case, your work allowance for UC will be £503 per month/AP, so if you make sure to earn lower than the ESA threshold that means no income will be deducted.

Missy606

Thank you all for you're very kind information. So as I read it.............ESA I'm allowed to work upto 16 hours and UC i can earn upto £503. And I would still receive all amounts I'm currently getting including LCW payment and council tax help.

poppy12345

Missy606 said:

Thank you all for you're very kind information. So as I read it.............ESA I'm allowed to work upto 16 hours and UC i can earn upto £503. And I would still receive all amounts I'm currently getting including LCW payment and council tax help.

For permitted work for ESA it's under 16 hours, please read the link i posted and no more than £131.50 per week. Also if you do work then you will no longer be entitled to the SMI and you will have to wait another 9 assessment periods without earned income before you can claim it again. 

Alice_Holt

And as council tax support is means-tested it may be affected.  
Each council sets its own scheme.

calcotti

Missy606 said:

Thank you all for you're very kind information. So as I read it.............ESA I'm allowed to work upto 16 hours and UC i can earn upto £503. And I would still receive all amounts I'm currently getting including LCW payment and council tax help.

Under UC you can earn as much as you want . The £503 is just the amount of earnings that are ignored. Your UC payment is reduced by 63% of any earnings above the Work Allowance but it is not a limit. Obviously if you earn enough this will nil your claim but this a mathematical result not a legal limit.

Under ESA it is up to 16 hours or £131.50/week and this is an absolute limit above which ESA is no longer payable at all.