ESA, Permitted Work (PW) & Furlough payments...

the_tired_one

A neighbour of mine started on the PW scheme at the beginning of Feb 2020 and is doing 12 hours a week.
Presently still working but if he was told that the company coud no longer afford to keep him or others, would he be entitled to the 80% wages?  Or does it not apply to those on PW and he would just revert back to being on ESA?
Thanks

sheramber

It is up to his employer. His employer has to apply for the 80% payment and it is paid to his employer who then pays him.

the_tired_one

Thanks.  He understands it's up to his employer but does the scheme apply to those working on the PW scheme?  Do DWP rules allow an application from an employer to furlough a staff member working via the PW scheme?  Thanks

TELLIT01

They aren't working through a 'Permitted Work Scheme'.  PW is purely between the claimant and DWP, it is nothing to do with the employer.  They are paid by the employer in exactly the same way all other employees are paid, and must be paid at least minimum wage.

It looks as if the company plans to lay people off rather than taking up the 80% scheme on offer from the Government.  In that situation they will simply revert to ESA only.

the_tired_one

TELLIT01 said:

They aren't working through a 'Permitted Work Scheme'.  PW is purely between the claimant and DWP, it is nothing to do with the employer.  They are paid by the employer in exactly the same way all other employees are paid, and must be paid at least minimum wage.

It looks as if the company plans to lay people off rather than taking up the 80% scheme on offer from the Government.  In that situation they will simply revert to ESA only.

Thanks! That's very clear.  I don't even think the company knows its via Permitted Work, but obviously DWP were informed when he applied to them and sent them all the employer/employment details.  Thanks again

Spoonie_Turtle

the_tired_one said:

TELLIT01 said:

They aren't working through a 'Permitted Work Scheme'.  PW is purely between the claimant and DWP, it is nothing to do with the employer.  They are paid by the employer in exactly the same way all other employees are paid, and must be paid at least minimum wage.

It looks as if the company plans to lay people off rather than taking up the 80% scheme on offer from the Government.  In that situation they will simply revert to ESA only.

Thanks! That's very clear.  I don't even think the company knows its via Permitted Work, but obviously DWP were informed when he applied to them and sent them all the employer/employment details.  Thanks again

It's not 'via', Permitted Work is just a set of rules limiting how many hours one can do and how much one can earn whilst still being entitled to ESA (and they have to be happy that it doesn't contradict the reason one is claiming ESA). So it's normal work, a job just like anyone else, the only extra step is letting DWP know about it, that's all

Username99999

Would a friend I know still get income related ESA (support group) as part of permitted work if they were placed on furloughed and paid in full by their work?

Spoonie_Turtle

Username99999 said:

Would a friend I know still get income related ESA (support group) as part of permitted work if they were placed on furloughed and paid in full by their work?

Presumably your friend was already doing work that fell within the rules anyway. Furloughing means they get between 80-100% of their usual income from the job, not taking them over the limits, so no effect on their ESA that I can possibly see.

[One thing I have learned from this thread and other questions elsewhere is that people seem to think Permitted Work is some kind of scheme like Remploy, rather than their colleagues getting the job just like anyone else. Interesting misconception.]

the_tired_one

Spoonie_Turtle said:

Username99999 said:

Would a friend I know still get income related ESA (support group) as part of permitted work if they were placed on furloughed and paid in full by their work?

Presumably your friend was already doing work that fell within the rules anyway. Furloughing means they get between 80-100% of their usual income from the job, not taking them over the limits, so no effect on their ESA that I can possibly see.

[One thing I have learned from this thread and other questions elsewhere is that people seem to think Permitted Work is some kind of scheme like Remploy, rather than their colleagues getting the job just like anyone else. Interesting misconception.]

I think one of the reasons for this 'misconception' is that there is really very little practical information available on Permitted Work, other than the official application form.  It's like it has been written by robots who don't have any interaction with the actuual people who might want to use the scheme.
 I went with my neighbour to one of his work-focused appointments at the Job Centre and the staff couldn't answer practical questions related to PW.   They could only quote chunks of text from the .Gov website.

TELLIT01

A somewhat simplistic explanation of Permitted Work is that it is intended to be a way for a person recovering from illness or injury to enter slowly back into the workforce without the worry of stopping benefit and having the risk that the job won't work out for one reason or another.