Hi, I'm RUBIKSCUBEBOY! Looking to start work, how much can I earn without losing my benefits?

RUBIKSCUBEBOY

Hello, hoping I can get some advice please. I am a 47 year old male wheelchair user, currently recovering from total knee replacement surgery on 8th January 2024. My 4th surgery in 4 years due to Rheumatoid Arthritis.

I was made redundant 12th January 2024 and put in for ESA while signed off from work. My final pay packet and redundancy was paid at the end of January and as I had less than £6k in my only bank account at the time, I put in for Universal Credit as well.

I have just been awarded LCWRA and wanted to know my options please, as I would like to take on a new part-time role working from home for a Charity. 

- Can I apply for Supported Permitted Work?
- Should I become self employed?
- How much can I earn without losing my benefits and housing?

I understand that there is help out there if I want to work, but like most people on here every day is a struggle, can I afford to risk losing my benefits for a few hours work?

I have a meeting with a disability work coach next week, so would like to know my options.

Thankyou

Rosie_Scope

Hi @RUBIKSCUBEBOY Welcome to the community! I'll put your post over into our Benefits section where more members can find it and help answer your questions

Are you still receiving ESA alongside your Universal Credit? Have you already secured a job with a charity or is this something you're hoping to do soon?

RUBIKSCUBEBOY

Thanks for the quick reply Rosie:
- Been getting £167 a fortnight from ESA 
- Applied for UC 1st February and been getting standard rate and housing paid less ESA
- Got a note in my journal yesterday to say I am in the LCWRA group and do not need to look for work
- Struggling financially as my redundancy has gone and heavily into overdraft
- Been volunteering a few hours from home since start of April, but not being paid as yet as waiting to see a work coach 
- Would love to be paid for a few hours each week 
- Permitted work form arrived in post today
- What's my next step?
- Disability work coach meeting booked for May 3rd

Thanks 

poppy123456

It’s known as just permitted work now for ESA. For this you must make sure you work less than 16 hours per week and earn no more than £183.50/week. Any more than this and your ESA will end. 

You must ring them and tell them you are starting work and you must fill out a PW1 form. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet#:~:text=If%20you%20have%20a%20disability,than%2016%20hours%20each%20week

For UC permitted work doesn’t exist. Instead you have the work allowance. This means that you can receive up to £404/month without it affecting your UC. Any earnings over that will reduce your UC by 55p for every £1 of earnings received.

You must report the changes on your journal once you start working. If you’re self employed you will need to attend a gateway appointment with a work coach to discuss your self employed work. 

You will then be expected to report your earnings and expenses in your journal on the last day of each assessment period. https://www.gov.uk/self-employment-and-universal-credit

RUBIKSCUBEBOY

Thanks Poppy. I will discuss with my disability work coach next week.

For now my understanding is, if I earn £100 a week, this will not affect my ESA, UC and housing benefits as I am receiving LCWRA.

If I moved to £180 a week, the first £404 is deducted, but I would lose 55p in the £1 for the remaining month UC, but ESA and LCWRA would continue.

If I moved to £300 a week, then I would lose ESA and LCWRA, but still be eligible for some UC and housing support.

Hopefully I haven't totally missed the mark. I have the PW1 form ready to send to ESA, once I speak with my work coach.

Thanks

poppy123456

You will only be claiming housing benefit if you're living in either supported or temporary housing. If not then your rent will be paid in with your UC known as housing element. They are 2 completely different benefits. Please also note that LCWRA is part of UC it's not a benefit on its own. 

RUBIKSCUBEBOY said:

Thanks Poppy. I will discuss with my disability work coach next week.

For now my understanding is, if I earn £100 a week, this will not affect my ESA, UC and housing benefits as I am receiving LCWRA.

That's correct. 

RUBIKSCUBEBOY said:

If I moved to £180 a week, the first £404 is deducted, but I would lose 55p in the £1 for the remaining month UC, but ESA and LCWRA would continue.

ESA continues. £404 of earnings are disregarded. The remainder reduces your UC by 55%.  The deduction for UC would reduce the whole amount by 55%. You will still be entitled to the same elements and your maximum entitlement will remain the same. The reduction for earnings will reduce the whole UC amount. For example, £180/week would be about £780/month for UC. The calculation for deductions would be as follows...
£780 - £404 (WA) = £376 x 0.55 = £206.80/month deduction for UC. 

RUBIKSCUBEBOY said:

ould continue.

If I moved to £300 a week, then I would lose ESA and LCWRA, but still be eligible for some UC and housing support.

Yes, ESA would end. Again, you don't just lose elements. Please see my advice above. The deduction of UC for earnings of £300/week (£1,300/month would be £715/month. 

If ESA stops then the deduction for ESA with UC would also stop so your UC would increase anyway. 

Please also note that a work coach isn't always the best person to speak to for such advice because they don't always have the best knowledge, especially for ESA. 

If you're claiming council tax reduction and you start working please don't forget to report the changes to your local Authority. Your CTR will then be recalculated. 

RUBIKSCUBEBOY

Very thorough. Thanks for clearing up my options in one very clear and understandable text. Thankyou