I had an enquiry today from a lady claiming Incapacity Benefit and Housing Benefit. She is starting self-employed work and says that the DWP told her that her "benefit" would not be affected as long as she was working fewer than 16 hours per week and earned less than £88.50 per week, but that the council had told her that her "benefit" WOULD be affected.

Was I right in my analysis that the Incapacity Benefit people were referring to their benefit, specifically the permitted work rules, and that they were correct as far as that goes, and that the HB office were referring to their benefit, and were also correct because HB does not have permitted work rules?

In short, her earnings won't affect her IB but they will affect her HB? Did I get that right?

Thanks.

In short ,yes you are right

Thanks for your swift reply.

Although you do state that your client is receiving Incapacity Benefit and Housing Benefit, you may just want to check that she isn't also getting Income Support.

If she were getting I.S. any earnings over £20 a week would result in an equivalenet deduction in her I.S. However,if she remained on I.S despite the reduction her H.B would be unaffected by the earnings.

A third possibilty is that she is getting Incapacity Benefit which is being topped up by a small amount of I.S. The overall affect would then be that her I.S. disappears altogether, the claimant keeps more than £20 a week of their earnings but their H.B is affected.

One good thing about the new E.S.A regime is that the higher disregard will apply to everyone who gets it, regardless of whether they come onto it through the contribution, or low income route.