Self employment and ESA/UC

glike19

can anyone advise me please? I have an assortment of mental health and physical disabilities. I am self employed but need to drastically reduce my hours due to my worsening health.
i need to start claiming benefits to cover some of what income I will lose.
does anyone know what benefits I am entitled to? Whether they will make things awkward because I still work and want to keep my business. Whether they will harass me to extend my hours again?

It’s been many years since I escaped the benefits system and I am very worried about the impact the DWP will have on my health again.
but I cannot mentally or physically carrying on working the hours I do with my business.
NB I am wanting to cut my hours down to 6hours a week.

I get lower rate DLA (entitled to a high rate but not prepared to make myself ill having to have more contact with the DWP)

Thank you for any help.

poppy123456

To claim New style ESA you must have the correct NI contributions in tax years 2021/22 and 2022/23. You must make sure you do not earn more than £183.50/week, known as permitted work. This benefit isn't means tested so capital/savings or living with a working partner do not affect it. You will need a fit note (formally known as sick note) from your GP to claim it. See link. You will also need to make sure you tell them that you're working.

https://www.gov.uk/guidance/new-style-employment-and-support-allowance

Universal Credit is means tested so if you live with a partner you'll need to claim as a couple and your joint circumstances will be taken into consideration. If you have capital/savings of more than £16,000 you're excluded from claiming. There's a deduction of £4.35/month for every £250 or part thereof over £6,000.

You should use a benefits calculator to check entitlement.

https://www.entitledto.co.uk/benefits-calculator/

If it shows some entitlement when you claim you need to make sure you report your health condition and provide a fit note within 7 days. If your earnings are less then 16 x National Minimum Wage (NMW) per week then you will be referred for a work capability assessment.

You also need to make sure you report that you're self employed when you claim. You will need to attend an appointment with a work coach to discuss your self employed work. If found to be gainfully self employed you will have a 12 month start up period where the minimum income floor will not apply to you. You will also need to report your earnings and expenses each month.

If you claim both of the above together the ESA will be deducted in full from any UC entitlement.

glike19

thank you so much. That has been very helpful

Albus_Scope

Hi there @glike19 and welcome to the community.

I see Poppy has already answered your query, but I wanted to stop in and say a quick hi. 😁

glike19

Hi Albus-Scope.
And thank you! :-)