ESA. Permitted work and holiday hours

A_D
A_D Online Community Member Posts: 3 Listener

I’ve searched the internet but unable to find an answer!

If you were returning to work after long term sickness and very unlikely to return to full time hours again (have been advised by Dr’s working 16 hours might be possible) would working 16 hours that is under the permitted work earnings limit and had lots of annual leave to take because of the long term sickness building up. If the annual leave was spread out over the next 6 months-1year would the HOURS taken as annual leave be counted as worked hours? I’ve seen a lot of info about holiday pay pushing people over but what my question is, is are the hours you take as annual leave counted towards the 16 hours per week?

Eg.

16 hour contract worked over 4 days

12 hours worked and 3 taken as annual leave within a week…


if the earnings are under the permitted work limit. Would the hours for that week be 16 or 12?

Any advice appreciated!

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    If you worked 16 hours per week while claiming ESA the ESA would end. Permitted work is less than 16 hours per week and not 16 hours.

    Earnings for annual leave is treated as earned income too so if your earnings increased to more than the permitted work amount then your ESA would stop. The maximum amount of earnings per week is £163.50.

    https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

    12 hours worked and 3 hours annual leave is 15 hours so under the permitted work maximum allowed. Earnings must still be less than the maximum amount so it will depend on how much your hourly pay is and how often you're paid.

  • A_D
    A_D Online Community Member Posts: 3 Listener

    that’s great thanks!


    sorry I meant to say 12 hours actually worked and 4 hours annual leave taken within the same week and the total amount of earrings (minus the permitted deductions) would be under the earnings threshold so it’s just the hours that is the confusing part.

    It’s unclear if the hours worked for that week would be totalled as 16 or 12 as annual leave hours aren’t hours that you are technically working so I’m curious how a DM would record them.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    That would be 16 hours and would mean your ESA will end. It must be less than 16 hours per week.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    I have no idea exactly what you're referring to with "CR."

    To answer your question, when part of your ESA is contributions based this will transfer to New style ESA when you migrate to UC and payments for this will continue as normal. Your weekly payments for ESA will be £138.20/week, paid fortnightly.

    The ESA will then be deducted in full from any UC entitlement. It means you'll receive ESA payments fortnightly and UC payment once per month.

    Your overall benefits entitlement will be the same.