Help please regarding UC/ESA and returning to work part time

Arcadia101
Arcadia101 Online Community Member Posts: 9 Listener
in Benefits and income

Hi, I currently receive LCWRA and my payment is £1252 per month of which £609 is deducted for ESA payments. £429 housing, £40 rent arrears and £58 advance payments. I am starting a new job where I will be working 25 hours a week and receiving £1306 per month before tax/ni.

My questions are…

Do I have to stop my ESA claim?

How will my future UC payments be affected? I am right in thinking UC will pay a percentage of my rent and I make up the shortfall from my wages?

Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,376 Championing
    edited November 24

    Hi,

    Yes, New Style ESA will stop immediately with those hours and earnings as they are well above the Permitted Work limits.

    You will continue to get the same overall entitlement from UC instead. No NS ESA deduction. But then your earnings above £411 will create a deduction of 55% from your overall UC payment.

    So £1306-£411=£895

    55% of £895=£492

    That means £1252 total UC entitlement - £492 earnings deduction = £760 monthly UC payment. (Minus the other deduction for advance repayment until that is paid back)

Categories