I wrote the DRH chapter and a colleague of mine wrote the CPAG chapter (see how incestuous the world of of welfare rights advice is!)
So I happen to know that the relevant statutory instrument (2006 No. 757, The Social Security (Incapacity for Work) Amendment Regulations 2006)was laid before parliament on 20th March -- too late for inclusion in the CPAG handbook which has a deadline of 1st March but early enough to necessitate frantic last minute amendments to DRH! CPAG currently reflects the old regulations.
I fully endorse Tim's advice, as DRH says: 'However, as you should notify the DP of any change ofcircumstances which could affect your benfits, it is best to et them know as soon as you start the work'. This is especially important in the case of supported permitted work, where the DWP still has to decide whether or not the employment falls within the regulations.
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