BENEFITS and PERMITTED WORK

In general, if a person is getting a benefit paid because they are incapable of work

Incapacity Benefit, Severe Disablement Allowance, Income Support on the grounds of incapacity or Employment Support Allowance (ESA) – then if they work their benefit has to stop

However there is some type of work that a person can do and still get these benefits.

It is very important that a person follows all of the rules and notifies the Department of Work and Pensions about the work they are going to do, or their benefit can be put at risk. There is a PW1 form to complete that is provided by the Department of Work and Pensions. When you start work, your case may be referred to a Department of Work and Pensions healthcare professional for re-assessment of your incapacity claim

There are two main categories of work that a person can do and still claim their incapacity benefits: Permitted work and Voluntary work.

• You can earn no more than £20*
• There is no restriction on the number of hours worked (the minimum wage will restrict the hours).
• There is no restriction on how long you can do this type of work for.
  
  The £20* limit means that means tested benefits such as housing benefit and council tax benefit should not be affected.

Supported Permitted Work

• This is work supervised by a person employed by a public or local authority
• The support must be ongoing and regular
• The person cannot earn more than £95*
• There is no limit to the number of hours worked
• There is no time limit on this type of work
• This type of work can be done as an inpatient or outpatient
• Remember that earning over £20* per week will affect means tested benefits

Permitted work higher limit - This is designed to test your ability to work before moving permanently into employment.

• The person must work for less than 16 hours a week
• There is a 52 week time limit for people in the work-related activity group of ESA and for incapacity claimants who are not exempt from the ‘personal capability assessment’. The person cannot work at this level again for a full 52 weeks. People in the support group of ESA and those incapacity claimants who are exempt from the ‘personal capability assessment’ can do this work for an unlimited period
• The earnings limit is £95*. Again remember that earning over £20* per week will affect means tested benefits

* figures correct as at 1/4/10. All figures are subject to review.

Voluntary work

• The person must not receive any payment for work but can receive payment for expenses
• The work cannot be for a close relative
• There is no limit in the hours worked

A note about Disability Living Allowance

Disability Living Allowance and Attendance Allowance are payable whether the person is working or not. They are not means tested so earnings will not affect the amount of benefit.

However starting work may suggest that your mobility or care needs have changed and the person’s entitlement may be reassessed

Above information correct as at 1/4/10 but is subject to review so seek advice if planning to undertake work.

Welfare Department, Bethlem Royal Hospital,