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New style C-ESA & permitted work
Clarification required.
Permitted work still applies to ESA whether it is IR-ESA, old or new-style C-ESA? Is that right?
Yes, I think so
http://data.parliament.uk/DepositedPapers/Files/DEP2020-0646/104._New_Style_ESA_Only_v1.0.pdf
I don’t know what happens if he is also claiming UC.
April 2017 Welfare Reform Changes
Permitted Work changes
What is changing?
From 3rd April 2017 the 52 week time limit for permitted work will no longer apply for both New and existing claimants
Claimants in the ESA assessment phase/ work-related activity group you will be able to do permitted work for longer than 52 weeks.
People claiming Incapacity Benefit (IB), Severe Disablement Allowance (SDA), and Housing Benefit (HB) claimants will also be able to work longer than 52 weeks.
This means, from 3 April 2017 those claimants can:
· work for less than 16 hours a week
· earn up to £120.00 each week (2017 rates); and
· do permitted work for any length of time.
Thanks both for your replies.
I cannot find anything to suggest that permitted work rules do not apply to new-style C-ESA.
The main reason for seeking clarification is that the claimant gets UC as well as new-style C-ESA and so we have advised him as to how income might be treated for UC purposes where he has LCWRA and as to the permitted work rules for new-style C-ESA.
If anyone else can shed some light on this I would be grateful.
Yes, permitted work does apply to New Style ESA (C)
I would try inputting a scenario into entitledto.co.uk
ESA(C) is what we used to call an overlapping Benefit as far as UC is concerned. With UC your client will get the LCWRA element and a Work Allowance. But all the ESA(C) will be deducted. There are some complications if pensions are involved but that is where entitledto.co.uk is helpful.
Thanks UB40.
I have advised him as such, that is that his new-style C-ESA counts as income for UC purposes as well as any earned income subject to work allowances etc.
Also that so long as he remains within the permitted work rules for new-style C-ESA then that benefit will not be directly affected.