Claiming Working Tax Credit as Single Person with Parents

Cass2019

Im posting on behalf of my son who has severe mental health difficulties, currently in receipt of PIP with enhanced daily living and ESA support group (income related) ; he gets "ESA living expenses" £73.10, plus "extra money because of the Disability Income Guarantee" £16.40 , and "extra money because in the support group" £37.65,. total £127.15.. He gets enhanced rate PIP for daily living. His father my partner receives higher rate mobility PIP. NO one claims carers allowance.  I work and husband and I own our home. If our son works eg gets a job with salary of £19000., our question is, will he qualify for / can he apply for working tax credit  ? He  contributes towards bills and living expenses and we will expect him to contribute more if working. Whether he will keep a job is a different issue altogether. Thank you. 

Adrian_Scope

Hello @Cass2019 and welcome to the community.

I presume your son lives at home with you? Unfortunately, unless you are also in receipt of PIP, DLA or AA (entitling you all to SDP) he wouldn't be able to claim Working Tax Credit. The only benefit open to him would be Universal Credit. 

However, with an income of £19,000 and no rent to pay (they wouldn't consider rent he pays to you as something they can help him with) even if he was granted Limited Capacity to Work and had a work allowance after deduction for wages, it would zero his claim.

If he's wanting to get into employment, it might be worth him looking at permitted work under ESA to see how he gets on before taking such a big leap. There are limits on what he can earn, but it'd be a good starting point.

Cass2019

Thanks Adrian. NO, its only his father who gets PIP, not me. We are six adults sharing a home: myself, husband, our adult (working ) daughter, and  elderly parents who get their own pension. We have built a separate self contained living accommodation unit at the back of our garden with small kitchenette and bathroom and are planning for son to move in there as it would mean he can live independently whilst being close enough for us to monitor him and check  in with him regularly.  - if he does move in there, could we properly expect him to pay us rent which will count as rent for tax purposes ?

Cass2019

I also wanted to ask, can he apply for universal credit if living with us and working with an income eg of £19 or £20,000? Are there any particular disadvantage/ advantages to going on universal credit ?

poppy123456

Hi,

Universal credit is one monthly payment with the housing element included, if the person claiming is entitled to it. Renting from a family member could be seen as a contrived tenancy and may not be possible.

Also with an income that high he may not qualify for any UC at all. My advice would be to put all of his details into a benefit calculator to see what comes up. https://benefits-calculator.turn2us.org.uk/AboutYou

Cass2019

thanks, is severe disability premium included in the ESA ?

poppy123456

No, not for your son because he doesn't live alone as advised by Adrian above.

He would have to claim Universal credit and with a salary that high it's very unlikely he would qualify for anything. His PIP will continue to be paid for as long as he's entitled to it.