Limited Capacity for Work decison and getting a job - An urgent enquiry!

BamberBoing

I have complex medical issues, relating to my blood flow and oxygen levels, sadly a life long illness - I started a claim for sickness related benefits due to increased illness in June 2020. The case was being handled by a complex case manager however I've finally been given a decison that I am in the limited capability for work and work related activity (LCWRA) group and receiving the additional benefit.

Ideally I would like to try some work - my mental health has struggled with the isolation and not having any daily routine.  My old job isn't an option but I may have found a part time role, 25 hours per week, that would fit around my medical appointments and wouldn't be too taxing physically.  

Can anyone help with a few queries? 

Would taking a job render me liable for full time work?  IE losing the LCWRA 
Is there a threshold that I can perform work up to a certain point - Maximum of XX hours or £XX per week? 
Would employment wages mean my benefits would stop? or be reassessed? 
I know the Jobcentre used to be able to look at your circumstances, benefits and potential work payments and do a calculation - Is this still available? 

Any and all help gratefully accepted!    

Spoonie_Turtle

BamberBoing said:

I have complex medical issues, relating to my blood flow and oxygen levels, sadly a life long illness - I started a claim for sickness related benefits due to increased illness in June 2020. The case was being handled by a complex case manager however I've finally been given a decison that I am in the limited capability for work and work related activity (LCWRA) group and receiving the additional benefit.

Ideally I would like to try some work - my mental health has struggled with the isolation and not having any daily routine.  My old job isn't an option but I may have found a part time role, 25 hours per week, that would fit around my medical appointments and wouldn't be too taxing physically.  

Can anyone help with a few queries? 

Would taking a job render me liable for full time work?  IE losing the LCWRA 
Is there a threshold that I can perform work up to a certain point - Maximum of XX hours or £XX per week? 
Would employment wages mean my benefits would stop? or be reassessed? 
I know the Jobcentre used to be able to look at your circumstances, benefits and potential work payments and do a calculation - Is this still available? 

Any and all help gratefully accepted!    

The maximum you can earn on UC is the amount which would reduce your payment to nil.  You can work backwards, divide your maximum UC payment by 0.63 then add on the work allowance - £292 if you claim help with rent, or £512 if you don't.  That will be how much you can earn in a month before your claim will close.

You won't lose your LCWRA 'status' (for want of a better word) unless you earn enough to close your claim, but if the job you do contradicts the reasons for being assessed as having LCWRA that would go against you at your nezt assessment.  Working may possibly trigger a reassessment earlier than you would have had if you weren't working, but that's not a problem if you can reconcile the work you do with the reasons for LCWRA, it's just something to be aware of.

Your payments will be affected by wages; they will deduct 63% of the amount you've earned above the work allowance.

You can put your details into a benefits calculator online to see the results of different scenarios, including different wages.  The calculation at the Jobcentre was probably a 'better off' calculation; I don't know if online benefit calculators offer that feature or not.

BamberBoing

To make this calculation would I add the UC plus the housing element to make the maximum total? or is it only based on the UC?

calcotti

The maximum UC amount is all the elements added together. The housing element is part of UC.

Spoonie_Turtle

BamberBoing said:

To make this calculation would I add the UC plus the housing element to make the maximum total? or is it only based on the UC?

It will be on your statement, before the section for deductions.  I wrote my previous post assuming you didn't have any deductions from your max UC entitlement already, otherwise minus those from the amount you get from the (÷0.63 + work allowance) calculation.

BamberBoing

calcotti said:

The maximum UC amount is all the elements added together. The housing element is part of UC.

I've done a rough calculation and it seems that with deductions from my UC, working for 25 hours per week I'd be on less than £1.50 per worked hour!  Not actually sure this will even cover the extra expenses and fuel as its a 12 mile round trip each day.  Shame as I'd love to be doing something productive!

calcotti

You would expect to retain at least 37p of every £1 you receive in take home pay. If yo7 have a Work Allowance then what you keep would be slightly higher.

BamberBoing

calcotti said:

You would expect to retain at least 37p of every £1 you receive in take home pay. If yo7 have a Work Allowance then what you keep would be slightly higher.

Thanks for that, I'm struggling to find reliable sources, each website seems slightly different! I'll try citizens advice in the morning and see if they can help. 

calcotti

If you are willing to post information from your last UC statement I expect one of us can work out the nil threshold for you.

BamberBoing

calcotti said:

If you are willing to post information from your last UC statement I expect one of us can work out the nil threshold for you.

I'm assuming you mean the figures, so have added below.

Standard allowance - £409.89

Housing element - £318.72 (My rent apyment is paid direct to the council)

Limited capability for work and work-related activity - £341.42

I have a benefits debt of £30.47 per month deduction.

Thanks again for the help, Feel really out my depth at the min! 

calcotti

So maximum UC is £1070.03. You are paid £1039.56 because of the deduction (presumably for an advance or debt). The fact that some of this is paid direct to your landlord can be ignored.  
Because you have LCWRA you will have a Work Allowance of £292.
If the deduction is ignored your UC nil threshold is £1070.03 / 0.63 + £292 = £1,990.46. This is the amount you could earn before your UC entitlement would be nil.

if you earned £1000/month (after tax, NI and pension contributions) the earnings deduction would be (£1000-£292) x 63% = £446.04.
if you earned £900/month the earnings deduction would be (£900-£292) x 63% = £383.04.

Be award though that if you are reassessed and found Fit for Work you would lose not only the LCWRA element but also the Work Allowance.