If my 21 year old works while living with me, will this effect my ESA and PIP or housing benefit?

worldwidestar

hi, I’m wondering if my 21 year old daughter started working while she’s living with me. Will this effect ESA and the housing benefit? (P.s I already have PIP) which is the daily living allowance. My daughter is a carer. I’m just curious. 

poppy123456

HI,

No, it won't affect your housing benefit because of your daily living PIP award. You say your daughter is a carer, does she claim carers allowance?

Dotty123

Hi poppy it’s me trouble I get enhanced pip living allowance if my son moved in would it affect my housing at all still hanging on waiting

poppy123456

Dotty123 said:

Hi poppy it’s me trouble I get enhanced pip living allowance if my son moved in would it affect my housing at all still hanging on waiting

Hi, No, it won't but it will affect your council tax single person discount. Also, if you're claiming the Severe disability premium in with your ESA then this will also stop, unless your son claims either PIP daily living or DLA mid/high rate care.

worldwidestar

Hi poppy, oh that’s a relief and yes my daughter claims a carer allowance in which this case is Universal Credit.

poppy123456

worldwidestar said:

Hi poppy, oh that’s a relief and yes my daughter claims a carer allowance in which this case is Universal Credit.

Carers allowance and Universal credit are 2 completely different benefits. If she claims Carers allowance then she mustn't earn anymore than £123 per week after deductions. Any weeks she earns more than this amount then she won't be entitled to any carers allowance. https://www.gov.uk/carers-allowance/eligibility

If she claims Universal Credit then unless she has a limited capability for work award or non dependents then she won't be entitled to any work allowance, therefore her wages will reduce her UC payments by 63% each month.

worldwidestar

Hi poppy thanks for the detailed information. She only claims for UC at the moment. I heard if she only worked under 16 hours or less and earns under £20 a day would this her effect UC payment? As this is her very little personal expense? Also her working part time wouldn’t effect my ESA/PIP or housing benefit right?

poppy123456

No problem. Yes any earnings she receives within her assessment period for UC will affect the amount she can claim. This means that for every £1 she earns then her UC will be reduced by 63p.

What she earns won't affect any of your benefits because that's your money, not hers.

poppy123456

How many hours per week does she work? and does she receive the carers element of UC?

worldwidestar

Thanks for that, that was very useful. What happens if she stops working over a month period, do we claim UC again? Or do we just let them know that she has stopped working so her regular pay for UC continues.

worldwidestar

She will work approx 4 hours everyday except weekends and in a small co-op shop. Just for her personal expenses, as she’s going to have to be home regularly to check on me everyday. 

poppy123456

You didn't answer my question, does she claim the carers element of UC?

If her UC is reduced to zero because of her earnings then her UC claim will close. She will then need to reclaim by logging into her journal.

worldwidestar

Hi sorry for the late reply, yes she’s getting the carers element of UC. I guess her UC will eventually stop if she works.

poppy123456

Based on 4 hours per day for 5 days a week at minimum wage for 21 year olds,  her UC will most likely reduce to zero because she doesn't have a work allowance.

worldwidestar

Right, makes sense. Can we re-claim for UC after she stops working? 

poppy123456

If it's longer than 6 months then she'll need to start a new claim.

Less than this and she can just log onto her UC account and restart her claim, this is a faster process than starting a new claim and she'll receive her payments on the same dates as before.

worldwidestar

Thank you so much that really helped, thanks a ton

poppy123456

You're welcome. Can i just make sure that she doesn't claim carers allowance (£66.15 per week)  which is different to UC. Some people claim carers allowance, even though it's deducted £1 for £1 from the UC payment.

If she does claim this then it can continue but she mustn't earn anymore than £123 per week after deductions.

worldwidestar

No, she doesn’t claim carers allowance. So it’s only the UC she claims which is £60 per week. Not a lot for her expenses. So can she earn £123 per week without her UC deducting the payment? 

poppy123456

worldwidestar said:

So can she earn £123 per week without her UC deducting the payment? 

No, this isn't correct. Please re-read what i've previously advised. her earnings will affect her UC payments and she'll have a deduction of 63p for every £1 she earns. This will very likely see her UC being reduced to zero.

One other thing may i ask what elements she's receiving for her UC payments? You said she's receiving the carers element and she should also be receiving the standard allowance for under 25's. Total UC per month should be £411.97 per month.

You said she receives £60 per week but UC is paid monthly not weekly. Are you sure she's claiming UC and not just carers allowance? They are 2 completely different benefits.

worldwidestar

Oh yes okay. Thank you. No she did not claim for the carers allowance benefit. She only claimed UC which is average £240 per month, but getting paid weekly £60 however which in a month is adds up too £240.