What can I earn while on benefits?

System
System Posts: 141 Online Community Programme Lead
edited August 1 in Benefits and income
This discussion was created from comments split from: Welfare : The full picture..

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  • Karenlush
    Karenlush Community member Posts: 3 Listener

    Hi, My name is Karen

    I currently receive LCWRA, Universal credit and PIP payments, all of which barely cover my mortgage and other bills. I am thinking of maybe finding some part time work to help with costs but struggling with my mobility and I worried what I can earn while receiving benefits. Is there any other benefits I could claim for ? someone mentioned I could get help with the interest on my mortgage. Any help and advice welcome,

    thank you Karen

  • poppy123456
    poppy123456 Community member Posts: 59,054 Championing

    You can work while claiming UC and the LCWRA element. You just need to be careful that the work you do doesn't contradict the reasons why you're claiming the LCWRA element.

    If you do start working you must report a change of circumstances and tell UC that you're working. You will also have the work allowance, which means a certain amount of earnings you (or a partner) receive each month will be ignored before deductions apply.

    As you're not claiming for help with the rent your work allowance will be £673/month. For every £1 over that amount your UC will reduce by 55%.

    You can apply for Support For Mortgage Interest (SMI) however, this is just a loan and will need to be repaid back in the future, if you sell your home. See link.

    https://www.gov.uk/support-for-mortgage-interest

    The only other benefit will be council Tax reduction which can be claimed from your local Authority.

    New style ESA maybe possible if you've worked at some point in the previous 2 tax years but this will be deducted in full from any UC entitlement so there's no financial gain. Although it's worth claiming it because you'll receive class 1 NI credits from this but only class 3 from UC. It's also not means tested like UC is.

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