Direct Payment and Benefits

JB2023
JB2023 Community member Posts: 10 Listener
in Work
Hi, I receive PIP, support ESA and Universal Credit. I have been asked by my sister's social worker to work with her for 8 hours a week and for that i would be able to receive direct payments as her carer. However i would need to be added to a payroll and it would be income. I feel I can do 8 hrs a week to help my sister but no more because of my condition.

However I have read online that direct payments aren't seen as a source of income. could someone tell me if my benefits would be affected if i took on the roll of helping my disabled sister for 8 hours a week.

Comments

  • poppy123456
    poppy123456 Community member Posts: 59,056 Championing
    You have misunderstood what you read. Direct payments aren’t classed as income for the person that needs the care/support… your sister in this case.

    As you will be her carer and she will be paying you for this then it will be classed as earnings for ESA and UC. 

    For ESA you can do permitted work. You must make sure you tell ESA that you’re working and fill out the PW1 form. You must also make sure that you work less than 16 hours per week and don’t earn anymore than £167/week. See link. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

    For UC then once you start working you must report a change of circumstances and tell them you’re working. You will have the work allowance which means a certain amount of earnings you receive each month will be ignored before the 55% deductions apply. If you claim for help with the rent it will be £379/month, if you don’t it will be £631/month. See link. 
    https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

    Do be aware that if the work you do contradicts the reasons why you were placed into the Support Group/LCWRA then it could go against you when you’re next reviewed.

    PIP isn’t affected by earnings but the contradictions also apply here. 

  • Hannah_Alumni
    Hannah_Alumni Scope alumni Posts: 7,906 Championing
    Hello @JB2023

    Welcome to the community! :) Hope you are well?

    I see Poppy has been able to answer your query, has it helped clear things for you? 

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