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Permitted Work.
Cl is on ESA(SG) with SDP, HB and PIP. Has a migration notice. Will get a TE, effectively for loss of SDP of (say) £232.75 .
Currently doing permitted work in IR ESA taking home £180/week.
As they’re in the Support Group they have a Work Allowance of £404. Earnings over £404 erode UC so that they’ve got income after WA/taper of a little over £200 month. Net income under UC is, to that extent, less than on legacy where ESA is not affected by permitted work.
Should the TE change so they’re not worse off?
The different treatment of his wages needs to be taken into account in running the TE calculation.
His “total legacy amount” is probably £1,042.38 net of housing.
His “indicative UC amount” is then the amount of UC which he can expect to get on those same facts. This would be the sum of the elements that he would expect to get (probably £809.64) less the amount of his earned income which would be taken into account (probably (£780 - £404)*0.55 = £206.80) which all gives £602.84 net of housing.
So you would expect that the TE in this case would be approximately £439.54.
[ Edited: 23 Dec 2024 at 10:47 pm by Elliot Kent ]