Possible P/T work for 16 hours + Universal Credit question

IanHull · 15 July 2019 at 1:45PM

Hi all

I'm after a little bit of advice. I'm currently on ESA work related and I know I'll soon be getting transferred to UC. I may have a chance of some paid work for 16 hours a week. It will only be minimum wage but I desperately want to get back into work again, and this will be a good starting point. The advice I need is, if I only earn £528 per month, that will barely cover my rent/bills etc each month. Would I be able to qualify for any form of top up, like Universal Credit? if so, based on the amount I just mentioned, what sort of top up could I expect?

Thanks to anyone who can help.

Ian

calcotti · 15 July 2019 at 2:13PM

Managed migration of existing benefit claimants to UC has not yet started. A pilot project was due to start in Harrogate this month but the necessary legislation has been delayed. The complete rollout is not scheduled to conclude until 2023 and as every target date for UC has so far been missed it must be doubtful whether this will be achieved. Unless you happen to live in Harrogate there is very little likelihood that you will soon be transferred to UC. Unless your circumstances change in such away that an existing benefit ends and you therefore feel a need to claim UC you will remain on your existing benefits for the time being.

In terms of work. While you on ESA you are allowed to work as long as it is less than 16 hours/week and you earn not more than £131.50/week. The income will be ignored and your ESA will be unchanged. You should tell DWP before starting the work.
https://www.entitledto.co.uk/help/Permitted-Work-Rules
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/800904/permitted-work-form-pw1.pdf
If your work contradicts the reason you are on ESA this may prompt a review of limited capability for work status.

If you will be working 16 hour/week your ESA will end. You could consider whether it would be better to work slightly less in order to keep your ESA going.

You can claim UC instead. Whether you will qualify for anything depends on your age and the help you would het with your rent. Impossible for anyone on this forum to say whether you can get help without more information.You can try a benefits calculator https://www.entitledto.co.uk.

With UC you will get a basic allowance, a housing cost element, a limited capability for work element if applicable and child elements if applicable. From this 63% pf your earnings will be deducted (although some of the earnings may be ignored if you have Limited capability for Work or a child). see https://www.entitledto.co.uk/help/Calculating-Universal-Credit

If you claim UC any Housing Benefit you currently get will end two weeks after you claim UC (future help will be included in your UC) and any Tax Credits you get will end.

There are no restrictions on the hours of work you can do on UC and there is no earnings threshold but, obviously, the UC you get will reduce as your earnings increase.

poppy12345 · 15 July 2019 at 2:16PM

IanHull wrote: »

Hi all

I'm after a little bit of advice. I'm currently on ESA work related and I know I'll soon be getting transferred to UC. I may have a chance of some paid work for 16 hours a week. It will only be minimum wage but I desperately want to get back into work again, and this will be a good starting point. The advice I need is, if I only earn £528 per month, that will barely cover my rent/bills etc each month. Would I be able to qualify for any form of top up, like Universal Credit? if so, based on the amount I just mentioned, what sort of top up could I expect?

Thanks to anyone who can help.

Ian

Who told you, you'll soon be transferred to UC? Managed migration won't start until at least next year but it could be a few years yet so for now you have nothing to worry about.

Permitted work is possible on ESA providing you work less than 16 hours per week and earn no more than £131.50 after deductions.

You need permission before starting this and do be aware that if the work you do contradicts the reasons for your claim it could prompt an earlier review. It could also go against you the next time you're re-assessed.

https://www.entitledto.co.uk/help/Permitted-Work-Rules

IanHull · 15 July 2019 at 2:23PM

First off, thanks for your reply @calcotti I just assumed I'd be getting transferred to UC. I have had a WCA for recently (sent back in March) and still not heard from them about an assessment. My health has improved dramatically and I know I'll fail the medical, which I'm not fussed about as working is more important to me. So assuming I fail and my ESA ends, that means I'll go onto UC right? if that's the case, then can I get a top up due to the monthly pay being low?

I hope I'm making sense.

calcotti · 15 July 2019 at 2:27PM

IanHull wrote: »

First off, thanks for your reply @calcotti I just assumed I'd be getting transferred to UC. I have had a WCA for recently (sent back in March) and still not heard from them about an assessment. My health has improved dramatically and I know I'll fail the medical, which I'm not fussed about as working is more important to me. So assuming I fail and my ESA ends, that means I'll go onto UC right? if that's the case, then can I get a top up due to the monthly pay being low?

I hope I'm making sense.

You will only go on to UC if you make a claim for it. There is no transfer.

As per my previous reply I do not know if you will get a top up - it depends on your age and circumstances.

Bear in mind also that if you currently get Housing Benefit you may continue get some while working. This will not end just because ESA ends. If you claim UC Housing Benefit will end and help with rent will be through UC instead.

Use the benefits calculator to put in your situation including earnings and see whether staying on Housing Benefit or claiming UC is more beneficial.

IanHull · 15 July 2019 at 2:32PM

Okay, I think I'm starting to understand now. My age is 53, I'm single and live alone in council rented accommodation. If I take this job and claim for UC, will I be refused as I'll be classed as employed. I really want to work and as we all know, it's not easy to get a decent job unless you're highly skilled (which I'm not) so is this P/T work even worth taking, I will only just be able to pay bills/rent etc with probably a few quid left over for each month (if I'm lucky)

calcotti · 15 July 2019 at 2:39PM

IanHull wrote: »

Okay, I think I'm starting to understand now. My age is 53, I'm single and live alone in council rented accommodation. If I take this job and claim for UC, will I be refused as I'll be classed as employed. I really want to work and as we all know, it's not easy to get a decent job unless you're highly skilled (which I'm not) so is this P/T work even worth taking, I will only just be able to pay bills/rent etc with probably a few quid left over for each month (if I'm lucky)

You will not be refused UC because you are employed. It is a means tested benefit for anyone on a low income. The stated purpose of UC is to help people into work (although many will challenge how effective it is).

In your case your UC entitlement is a single person allowance of £317.82/month. Lets say your allowable rent is £400/month. That makes your total maximum UC £717.82/month. If your take home pay is £528/month then a deduction of £332.64 is made (£528 x 63%).

UC payable is then £717.82 - £332.64 = £385.18/month.

However you should compare that figure with what you might get staying on Housing Benefit - I think the UC figure is likely to be higher (by about £20/week). However on UC, if you are fit for work, you will be expected to look for more work to increase your hours and/or earnings.You will not have this pressure on Housing Benefit.

You will continue to get Council Tax Reduction but must keep council informed so that they can review how much help you are entitled to.

IanHull · 15 July 2019 at 2:42PM

@calcotti Thank you so much, that's the sort of information I was after, number. The smile on my face has returned.

Much appreciated for taking the time to help.

Ian

calcotti · 15 July 2019 at 3:14PM

Please do use the benefit calculator to check the situation with your actual rent (remember the allowable rent is reduced if you have more than one bedroom).

If you can afford to stay on Housing Benefit I would suggest this is likely to make for an easier life than claiming UC because there is no pressure to find more work - but that's your decision.

If your earnings may fluctuate you would have to tell your local authority each month whereas on UC DWP would be told automatically by HMRC based on what your employer reports to them.

IanHull · 15 July 2019 at 3:55PM

Thanks for the extra information. I will look at the benefit calculator. My rent is quite reasonable (£68 per week) so I'm not sure if I'd still qualify for that, would I?

I don't think the earnings will fluctuate, not at first, maybe in the future but I'll keep that in mind. It's all quite daunting if I'm honest, but I'm sure I'll get used to everything. The important thing is, I'll be working again.

calcotti · 15 July 2019 at 4:09PM

By my calculation (not guaranteed to be correct):

UC calculation
Single person allowance of £317.82/month.
Rent is £294.67/month (£68 x 52 / 12 assuming you have no rent free weeks)
Maximum UC £612.49/month.
Take home pay £528/month therefore earnings deduction is £332.64 is made (£528 x 63%).

UC payable is then £612.49 - £332.64 = £279.85/month (so almost covers your rent).

As stated before you could stay on Housing Benefit and I would expect you to still get this but about £25 less/week (I have used entitled and that is showing this difference).

You will probably still get some Council Tax Reduction but probably less than you do at present so amount of Council Tax you have to pay is likely to increase. However this depends on the rules for your local authority.

There is no rush for you to claim UC. When you start your job tell ESA and your local authority. Bear in mind your fortnightly ESA will stop and you will have to wait for your first wages to come in so you may have a tight few weeks. Local authority will recalculate Housing Benefit and Council tax Reduction. You can at any time decide to claim UC if you decide it's worth it in order to get the extra £100/month (in return for having to look for more work).

You may want to get a benefits check done by a local advice agency or, as suggested, use the online calculator.

Possible P/T work for 16 hours + Universal Credit question

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