ESA and UC - returning to work as a self employed sole trader

GettingBetter

Hi
I am 62 years old and in ESA Support Group [PTSD/mental} {4years+}.
I recently moved in to a Universal Credit Full Service Area.
I would now like to return to work as Self Employed/Sole Trader.

Can someone please tell me what the process is?

1)If my request to go to work as Self Employed triggers a reassessment that puts me in WRAG, will that then be under UC?
2)Can I volunteer to migrate to UC from ESA SG now, and when ready, go Self Employed?
3}What is the minnium hours worked for me to qualify for UC?
4)Are there any other options open to me?
Thanks
John

CockneyRebel

Hi John and welcome

1) A change of circumstance will put you under but if you are only claiming ESA SG that should stay outside UC It should not trigger a reassessment. Only IR benefits are subject to UC
Are you doing this as permmited work ?
Be careful that the work you do does not conflict with the reasons for your claim

2) try putting your details into an online benefit calculator to see if it is beneficial

3) have a look at
https://www.gov.uk/self-employment-and-universal-credit

CR

JennysDad

Just saying hello and welcome to the community, John @GettingBetter. Very glad to have you with us.
With CockneyRebel on your side you're in the best of hands. If there is anything else we might be able to help you with, please don't hesitate to talk to us.
Warmest best wishes to you
Richard 

GettingBetter

Hi CockneyRebel
Thanks for the reply.

I have a jobcentreplus letter from last year which says; You were awarded Employment Support Allowance Income Related.

And I have a another letter about how much I get from last month saying; The payment of Employment Support Allowance is based on your National Insurance Contribution records....
I am in the ESA Support Group.

I hope to be working full time as self employed if the work is there, but might get no work some weeks. That is why I need the safety of benefits.
If the work is there, then I will be as happy to have no benefits.

If they do move me to UC, what is the minnimum hours I have to work to qualify for benefits?

Making the first move is very stressfull, so any help is appreciated.
Thanks 
John

GettingBetter

Thanks CockneyRebel

Sam_Alumni

Hi @GettingBetter
I have passed this post onto the @BenefitsTrainingCo and to our employment advisors @pia_scope @Zaid_Scope @Donisha_scope @rian_scope @mwila_scope

So I hope someone will be able to help you soon.

You can also try getting in touch with the Scope helpline on 0808 800 3333 

Best wishes!

GettingBetter

Sam
Many Thanks
John

Pia_Scope

Hi@GettingBetter

Your query is quite complex but I will try to answer as best as I can.

As you are unsure about the hours of work that you will gain from self-employment, it is probably best for you to stay under 16 hours per week and remain on ESA until you know if the self -employment is sustainable and expected to provide an increase in earnings.

Once you work 16 hours or more your ESA claim should stop, but you might be able to claim working tax credit if you can provide a cash flow that indicates an expected increase in earnings. 

As you live in a live UC area you would be asked to make a claim for UC should you realise that you cannot sustain yourself financially with your self-employment.
When making a claim you would automatically be treated as capable of work, after the self-employment, and so might not be able to qualify for any disability elements paid in UC.
(You might be able to make an ESA claim again but the process could be long and leave you without any income whilst processed)

Under UC there is no minimum working hours in regard to the claim, instead the amount that you will receive is calculated based on your earnings. 
The problem with this is that your income might fluctuate which could leave you worse off.

So, taking all this into consideration, my best advice to you would be to start off your self-employment working less than 16 hours per week. That way, unless you earn over £120 per week, you will still be in receipt of your ESA as well as possible housing benefit.
This would also give you time to see if your business is profitable. 

I wish you all the best & hope that whatever decision you will come to will turn out beneficial.


King Regards
Pia