ESA Reclaim for 16 Hours Work

Miller91

Hi 

I claimed ESA for circa 18 months. My understanding was that you could work 16 hours per week and I have worked 16 hours per week (or 64 hours per calendar month so actually over the period less than 16 hours per week) and been paid circa £135 per week.  

DWP have now written to me to reclaim the full amount £7500 because my work doesn't fall into the exempt category. I can only think this is because I worked 16 hours and the rules actually say less than 16 hours ... has anyone any experience with similar situations? 

Thanks

poppy12345

Permitted work rules state that it must be less than 16 hours per week. For every week you work over that then you won't be entitled to ESA for those weeks. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

Miller91

poppy12345 said:

Permitted work rules state that it must be less than 16 hours per week. For every week you work over that then you won't be entitled to ESA for those weeks. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

thanks but do you think i will get anywhere with an appeal? i thought you could do 16 hours and not 16 hours 1 minute - i now guess you can do 15 hours 59mins?

calcotti

Miller91 said: i thought you could do 16 hours and not 16 hours 1 minute - i now guess you can do 15 hours 59mins?

That's correct. If working 16 hours there is no ESA entitlement. Nothing to appeal - that's what the regulations say.

poppy12345

Did you not think to check on this before you started work? It's always been less than 16 hours.

Miller91

poppy12345 said:

Did you not think to check on this before you started work? It's always been less than 16 hours.

Well yes and I wrote 16 hours on my permitted work form 

MalMonroe

Did you fill in the PW1 form before you started your work, as described in the link from poppy12345?

If so, you could certainly challenge DWP's decision to make you repay the money since they would have been fully aware of your work. 

But I'd also have to contact DWP and ask them why they allowed you to carry on working for 18 months without checking or challenging you before now.

You're earning less than the maximum permitted after tax and the rules seem a bit confusing.  

What is clear, though, is that you need to contact DWP as soon as possible (do you have your own, named adviser?) to ask some pertinent questions and discuss this matter thoroughly. 

TELLIT01

Were you paid weekly, 4 weekly or monthly?  If monthly, and you worked 64 hours evenly spread over the period I don't see why there would be a problem as both the weekly hours and income seem to be below the limit.  If you were paid weekly, or 4 weekly and worked 16 hours per week you were working above the limit.

If you put 16 hours per week on the PW1 there is certainly a valid question about why that wasn't picked up by DWP staff.

You aren't the first person to get caught out by the difference between up to 16 hours and less than 16 hours.

calcotti

I completely overlooked that you referred to 64 hours/month as well as 16 hour/week. Excellent points raised by later posters. 

airliner

For the 2020/21 tax year the minimum wage was £8.72 p/h. 

16 hours x £8.72 = £139.52

So, you are either being paid less than minimum wage for 16 hours of work, or you are not working 16 hours, or you are working 16 hours but there are deductions from your wage.

In addition to the 16 hours/64 hours query raised by Tellit01 , I just wondered if you have included any unpaid breaks when calculating your worked hours?

poppy12345

airliner said:

For the 2020/21 tax year the minimum wage was £8.72 p/h. 

16 hours x £8.72 = £139.52

So, you are either being paid less than minimum wage for 16 hours of work, or you are not working 16 hours, or you are working 16 hours but there are deductions from your wage.

In addition to the 16 hours/64 hours query raised by Tellit01 , I just wondered if you have included any unpaid breaks when calculating your worked hours?

OP maybe under 25 so NMW was £8.20 for 20/21.