I picked up a case about an IB claimant who was claiming IB and doing a p/t cleaning job at same time. This was initially for 2 hrs per day but hrs gradually increased over period of one year. Her work & earnings did not fitting the rules for permitted work. She failed to disclosed her employment/earnings to DWP or HB/CTB office. The dwp found out & stopped her IB. It doesn’t accept the work meets the rules, so client has ended up with a decision to repay benefit as an overpayment because she started work before telling them. After being found out, the client notified Housing/Council Tax Benefit sections separately about the earnings for period in question. Council is also seeking recovery of alleged HB/CTB The client is 55 yrs old, from Ghana and I think she can't read. Her excuse was that she was testing whether she can return to work, she started pt work to try coming out of her depression, and she did not know about 'Permitted Work', or that doing a few hours work, would affect her IB. I believe that that HB/CTB will be reduced if total earnings are more than £20 – assuming that you have the ‘Disability Premium’ in your benefit calculation. Client now does care work f/t and is off benefits. The alleged overpayments are significant. Any advice/suggestions would be helpful. I understand the rules about recoverability of overpayments, but need help about that in relation to 'Doing permitted work while claing IB'. Does the client have a chance to come out of this mess, apart from repaying the OP.

R(IB) 4/05 might be a good place to start at least as far as the 1st 26 weeks are concerned.
Philip Boyd

When did the alleged overpayment occur? The rules for exempt work in Reg 17 of the Incapacity for Work regs changed significantly in April 2006. The requirement to notify DWP specifically of the change removed completely, though not the general duty to notify of any material changes (which would apply to IS and HB, with the increase in income).

If she was genuinely on IB (not IS), was within the earning limits at the time and the hours limit, and did not work for more than 52 weeks, all after 9.4.2006, then there has not apparently been any overpayment of IB. You would need to know why the DWP thinks there has, if so.

If any part of the period in dispute is before 10.4.2006, then there are other problems, mainly the requirement to give notice to DWP within 42 days of starting the work at the latest. This applies to IB. For IS, if the work could not be classified as exempt work she might no longer qualify for IS, unless she was in some other IS-able category such as a disabled worker.

If she was on IS, then she has the problem that her earnings, even if legitimate exempt work, are likely to reduce her IS entitlement and thus lead to an overpayment. Likewise the local authority benefits, whatever the nature of her earnings. If it was not exempt work, so that she was no longer incapable fo work, she would lose her disability premium. However the council should be encouraged, when you have worked out whether the work does count as exempt work, to consider underlying entitlement for the period. Just becasue she was/may not have been entield to IS/IB becasue of whatever, doesn't automatically mean she isn't entitled to HB/CTB at all, though you wouldn't know it from the way many councils respond.