Permitted earnings and end of ESA(C)

Morning

I have a question, might be really obvious…

Client on ESA(C) due to run out Sep 12, is currently earning £92/wk on permitted earnings which she started in Jan 12.

When her ESA(C) runs out if she is not entitled to ESA(IB) will her earnings continue to be disregarded for HB purposes for the rest of the year i.e Jan 13?

Thanks for your help

As long as NI credits in payment on the basis of limited capability, etc, then earnings for exempt work are disregarded.

She should be automatically put on National Insurance contributions only which means she is still deemed to have limited capability to work and will therefore still be subject to the Work Capability Assessment and attending work focussed interviews.

This will entitle her to have the Work Related Activity Component included in her Housing Benefit/Council Tax Benefit asseessment and for her earnings to be subject to the permitted work
earnings disregard.