Employment and Support Allowance (ESA)
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Is the allowed amount after or before tax and do they take into account pension contributions?

nickiwalkernickiwalker Member Posts: 2 Listener
Hi I’m hoping someone can give me a direct answer here as Iv been told many different things ! 
I’m starting a new job and will be earning more than the amount allowed to receive esa. 
My employer is willing to drop my hours (which are only 15!) to keep me with in my allowed earnings however by the time Iv payed into my nhs pension and payed tax I’m well below the amount allowed ! 
Is the allowed amount after or before tax and do they take into account pension contributions as Iv been told differently on a few occasions! 
Feeling very confused and frustrated as I’m trying to better myself and work within my boundaries within a hospice while still receiving cancer treatment! However I’m feeling like I’m being penalised for doing so ! 
HELP !! 
Thanks 

Replies

  • thespicemanthespiceman Member Posts: 6,408 Disability Gamechanger
    Hello @nickiwalker   Pleased to meet you.

    Thank you for joining and sharing.

    Sorry to hear what you have been through. hope and wish you the best.

    I am one of the team of community champions.

    We have a member of our team who has expertise and knowledge. Regarding your query.

    @poppy123456 have tagged the lady. Hopefully be able to answer your question.

    Please if there is anything you need to know please ask.

    We are a supportive, compassionate community have empathy.

    Please take care and wish you well.

    @thespiceman
    Community Champion
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  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited December 2019
    HI and welcome,

    I'm one of the community champions here on scope. Permitted work earnings is less than £131.50 per week after deductions of tax and NI, whether they allow for pension deductions, i really don't know i'm afraid. I even looked at the DMG for the rules with this but couldn't find anything about pension deductions.

    You do also need to make sure it's LESS than 16 hours per week and have permission before starting work. You'll need to fill out the PW1 form also.

    Do be aware though that if the work you do contradicts the reasons why you're claiming ESA then they could re-assess you early and it may go against you when the decision's made on the re-assessment.

    Good luck with the treatment and with the work too!
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • steve51steve51 Member Posts: 7,175 Disability Gamechanger
    Hi @nickiwalker

    Good Mourning ☃️⛄️

    I can see that you have been given my good friend:

    @thespiceman & also @poppy123456 who are both very very good & with all of your current situation/problems.

    Please please come back to me if you need any further help/support.

    @steve51

  • Chloe_ScopeChloe_Scope Scope Posts: 10,652 Disability Gamechanger
    Welcome to the community @nickiwalker! I have nothing further to add, but I hope everything works out. Please do let us know if you have any further questions. :)
    Community Partner
    Scope

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  • nickiwalkernickiwalker Member Posts: 2 Listener
    Thanks very much for you help 
    Nicki x
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