Permitted Work reduces income support ?

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Stroof
Stroof Posts: 68 Forumite
in Benefits & tax credits
In the next couple of weeks the plan is to go back to light duties under the Permitted Work scheme, initially working 6 hours so about £70/week.

The regs state this does not affect the basic ESA (incapacity benefit), but is there a sliding scale affecting other benefits ??

1) Council Tax benefit ?

2) Income support (for mortgage interest) ?

Does anyone know the reduction to expect, it will not stop me going back to work but I don't want a nasty surprise either. Thanks.

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  • ceecee1
    ceecee1 Posts: 409 Forumite
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    Although you are able to earn up to the limit for paying national insurance contributions and still get ESA under permitted work. The normal rules for the receipt of Income Support apply, ie, you can only earn £20 a week without it affecting your benefit and anything over that is taken of pound for pound.

    So, if you were to earn £70 a week you would still get all of your ESA but you would loose £50 a week of your income support. If that £50 reduction took you off income support you would just get ESA.
  • NASA_2
    NASA_2 Posts: 5,571 Forumite
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    You cant be on ESA(IR) and Income Support.

    Are you still on the 'Old' Sickness benefit ie. Incapacity Benefit or did you claim ESA?
  • Stroof
    Stroof Posts: 68 Forumite
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    By Income Support was meant (income) support for mortgage interest - used to be known as ISMI and now just SMI ? Other than this I just get basic ESA.

    My question was do I lose entitlement to this benefit in some way, is the benefit reduced as ceecee1 says at £ for £ rate ?
  • deb0020
    deb0020 Posts: 191 Forumite
    edited 5 June 2009 at 4:41PM
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    Stroof wrote: »
    By Income Support was meant (income) support for mortgage interest - used to be known as ISMI and now just SMI ? Other than this I just get basic ESA.

    My question was do I lose entitlement to this benefit in some way, is the benefit reduced as ceecee1 says at £ for £ rate ?


    You will be in receipt of Incapacity Benefit and Income Support
    OR
    ESA (IR) and ESA (C)
    it cannot be a combination of the two.

    If it is Income Support (even if just for mortgage is still Income Support) then your Income Support will be reduced £ for £ after an initial disregard of £20 (assuming you are getting disability premium as part of your Income support).
    Sorry I do not know the rules for ESA (IR) but assume they would be similar.
    ESA, who posted above, will know.

    Good Luck with your job
  • bigbill
    bigbill Posts: 928 Forumite
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    Any approved permitted work income is ignored in full if your on ESA both types.
  • Frosty-Box
    Frosty-Box Posts: 13 Forumite
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    bigbill wrote: »
    Any approved permitted work income is ignored in full if your on ESA both types.


    No No Big Bill!! If you are on ESA Income Based, it is a means tested benefit just like JSA Income Based or Income Support. The Permitted Work may be approved but the wages earned WILL be taken into account if on ESA Income Based!! I believe (and can find out for deffo) it's the same rate as IS ie £20 disregard, then £ for £. But taken into account I know for certain.

    FB x
    Never be afraid to try something new. :confused:
    Remember that a lone amateur built the Ark. :p
    A large group of professionals built the Titanic :eek:
  • bigbill
    bigbill Posts: 928 Forumite
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    Frosty-Box wrote: »
    No No Big Bill!! If you are on ESA Income Based, it is a means tested benefit just like JSA Income Based or Income Support. The Permitted Work may be approved but the wages earned WILL be taken into account if on ESA Income Based!! I believe (and can find out for deffo) it's the same rate as IS ie £20 disregard, then £ for £. But taken into account I know for certain.

    FB x

    Sorry but your wrong

    http://www.dwp.gov.uk/esa/pdfs/t03-esa-factsheet-current-work.pdf
  • Stroof
    Stroof Posts: 68 Forumite
    edited 8 June 2009 at 9:04PM
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    well, well

    Thanks for the reference which I have read through a few times.

    It says "earnings from permitted work will not affect the amount of ESA that is payable" but that earnings are taxable.

    Then some stuff about ESA(IR) and partner earnings - don't really understand (IR) vs (C), the BDC letter seems to suggest I am on both ! Thanks to a gash Atos medical I have been set back on the "assessment phase" rate anyway.

    Finally, some worrying stuff at the end - "where a person remains entitled to income related ESA they will continue to receive full Housing Benefit and Council Tax Benefit" - but that this is subject to review.

    It should say ESA rather than "income related ESA" and then I would know I was ok.
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