What happens to my benefits if I start doing paid or voluntary work?
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- Maryann Stanley
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1 What happens to my benefits if I start doing paid or voluntary work? This information has been quality checked by Inspired Services against the government s easy read standards
2 Introduction: This information is from the Disability Rights UK Handbook Benefit rules change so please check the Department for Work and Pensions Website for the latest information. Your local Citizen Advice Bureau can help you with benefits. There are no changes to these benefits if you start work (your pay is not looked at): Disability Living Allowance (DLA) Personal Independence Payment (PIP) Attendance Allowance You should let the DWP (Department for Work and Pensions Benefits Agency) know if you start to be paid. The types of work that don t change your benefit are: A DWP unpaid work trial or work placement Permitted Work (more details below) Work as a councillor (politician) pay up to 120 a week. Care for someone in your family or do jobs like cooking and cleaning in your own home. Emergency activity like lifeboat crew or fire service. Fostering a child (Employment Support Allowance only) Looking after someone who is not normally living in your house if their care is paid by health and social care (Employment Support Allowance only) Self-employed work where you are trying it out. Some voluntary work (see below) 2
3 Work that does not happen very often and doesn t involve much pay. Permitted Work This is work that gives you the chance to try out a job. There is no limit on how long you do permitted work but your pay must be below the limit. You have to let the DWP know you are doing permitted work. There are 3 types of permitted work: Lower Limit: You can earn up to 20 a week and you can still claim Employment and Support Allowance. Higher Limit: You can earn up to 120 a week. You must work less than 16 hours a week. Supported: you can earn up to 120 a week and the work is either part of a treatment programme or a programme arranged by a public or voluntary body for disabled people. If your pay is no higher than 20 or 120 limit then ESA, Incapacity Benefit, Severe Disablement Allowance or Housing Benefit are not changed. Voluntary Work: Voluntary work is where you don t get paid for your work but you can get your expenses paid. You are allowed to do voluntary work if you are on these benefits: Incapacity Benefit Severe Disablement Allowance Employment and Support allowance Income Support Universal Credit You can work as much as you like as a volunteer.
4 Why is getting a job and earning money good? People are happier and healthier if they work. Work helps us feel proud of what we are doing Work helps to keep us busy We can meet more people at work If you are being paid you are better off than on benefits. What benefits stop when you start getting paid? Except for Permitted Work if you work you will not get: Employment Support Allowance (ESA) Incapacity Benefit Income Support Severe Disablement Allowance (SDA) Disability premium under incapacity condition National insurance credits for limited capacity or incapacity for work. Housing Benefit: The more money you get paid the less Housing Benefit you will get. If someone you live with has housing benefit they may also get less. Carers Allowance: Your pay must not be over 116 a week and you must still be providing care for at least 35 hours a week. 4
5 Income Support and Employment and Support Allowance: If you work less than 16 hours a week in permitted work your benefit is not affected, under incapacity for work. If you are not under incapacity to work you can still get this benefit as long as it s less than 16 hours a week and you can get up to 20 in pay. Jobseekers Allowance: If you work under 16 hours a week you can get Jobseekers Allowance (JSA). To get this you have to sign-on for work at the Job Centre and be ready to work full-time. Tax Credits: You may be able to get tax credits to top up your pay. To get Working Tax Credits you have to work more than 16 hours a week. Changes to benefits Some people with a learning disability may be labelled as having limited capacity to work. This is where your disability means you can t do some work or have to work part-time. If you can work full-time you can t get incapacity benefits. Universal Credit: Is replacing some of the benefits. Permitted work is changing to work allowances and is given if you have limited capacity to work.
6 Once you earn more than your work allowance then Universal Credit is reduced by 63p for each 1 in your pay. Money to help you find a job You can also get money from the Job Centre to help with: Finding a Job Equipment and support at work Trying out a job Starting a business Childcare costs Housing costs 6
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