UC & Work Allowance

Catonthemoon

Have just been migrated to UC, having previously been in receipt of ESA & HB. I understand that I could undertake some paid employment due to something called ‘Work Allowance’, and earn up to £404pm without there being any reduction in UC. 

This is something I am considering & would like to try, however, I have been out of the world of work for many years due to ill health. As a result, I ask myself “what if I wasn’t up to the job”?, “what if the employer wasn’t happy with me & let me go”? or I simply couldn’t do it for whatever reason. 

My bigger question is this: assuming I did find something that was ‘perfect’, would that not be playing into the DWP’s hands? I was in the support group (LCW) - at any future reassessment, they could put it to me that now I have started a p/t job, that suggests that I certainly am capable of work. That could then have consequences for my UC claim!

Any thoughts/advice please?

Spoonie_Turtle

There will be a reason you were assessed as having LCW, you'll have had to score enough points or meet a certain descriptor.  If you find a job that fits in with your health it doesn't meant those difficulties have gone away.  At a reassessment you'll be able to explain how the job works for you with your needs.

In terms of whether the job works out or not, you can't be sanctioned if you have to give it up (and that was true of ESA too).  That's kind of the whole point of having a safety net built into the benefits

[If you are still receiving ESA it might be wise to keep below the permitted work thresholds in order to keep your ESA claim open, at least until you know whether the job will work out or not.  Just so that if it doesn't work out and you were to come into some money or any other chance of financial circumstances that meant you were no longer eligible for UC, you'd still have your ESA as income.]

NedS

The first step would be to discuss with your work coach - that is their job, to help and support you back into work when you are ready. It sounds like you are thinking you may be ready to try to take some steps towards that goal, and that's great. You can go at your own pace, and they can hopefully help find roles and employers who are supportive towards those with limited capacity for work.

As @Spoonie_Turtle said, please do not worry about losing benefits, that is not how the system works. The whole point is to try to support you to take steps to make your life better rather than being stuck in a benefits trap or hole for the rest of your life.

sammyjammy

Definitely speak to your work coach, there are organisations that can help you find something suitable and support you in making sure your needs are considered by the employer as well.

Northern_Wanderer

Do you currently have LCWRA? This is different to LCW. LCWRA you get an extra amount in your UC each month. If you have LCW or LCWRA and get housing element your work allowance is £411/month.

If you still have new style ESA, and wish to do any work, you must inform DWP using a PW1 form before starting to work, ther is an earnings/hrs limit. If you start work, there is always a chance that you get re-assessed and lose your status, but DWP would have to have grounds for this. So potentially you could lose your LCWRA element if you have it.

Catonthemoon

Northern_Wanderer said:

Do you currently have LCWRA? This is different to LCW. LCWRA you get an extra amount in your UC each month. If you have LCW or LCWRA and get housing element your work allowance is £411/month.

If you still have new style ESA, and wish to do any work, you must inform DWP using a PW1 form before starting to work, ther is an earnings/hrs limit. If you start work, there is always a chance that you get re-assessed and lose your status, but DWP would have to have grounds for this. So potentially you could lose your LCWRA element if you have it.

I have only just been migrated to UC - haven’t received any figures yet. I’ve also received a letter saying a work coach will contact me & explain what I need to do to complete a New Style ESA claim.

The figures for the ESA that I was receiving up until a fortnight ago were:
Living expenses £92.05
Disability Income Guarantee £21.20
Extra money because you’re in the Support Group £48.50

Are you saying that if I start p/t work I could lose the additional payments of £69.70 (21.20 + 48.50)?

KxMx

You will have the ESA Support Group equivalent under UC (LCWRA).

You will be better off on UC because Standard Allowance +LCWRA pays more than ESA Support Group (£823.41 v £700 monthly equivalent of your ESA).

With LCWRA you won't have a work coach, the NS ESA appointment is just to agree commitments, your only commitment will be to keep them informed of any changes same as with UC. 

£609.05 will be deducted from your UC award for the New Style ESA, this is the monthly equivalent of a weekly benefit (£140.55 a week).

The £823.41 figure is the same, but for you most of that will come from NS ESA topped up by UC.

With UC you can earn £411 due to the work allowance, before any deductions are made.

There is always the risk of re assessment and having a job used as evidence you don't meet the DWP threshold for LCW/LCWRA, especially if the nature of the job contradicts the reason you were awarded LCWRA.

If you tried a job and it doesn't work out, there would be no sanctions from UC as with LCWRA you have no work commitments.

With a dual UC/NS ESA claim you'd only have one Work Capability Assessment for both benefits, using the UC50 form which is identical to the ESA50. 

Catonthemoon

@KxMx

Thank you very much.