Supported Permitted Work

Advising third party on possible benefit entitlement in following situation:

Client is on IB-ESA currently at assessment rate. Also on DLA LM, LC. Aged 30. Has possibility of doing supervised work with an organisation that helps those with disabilities in to work. Initially the post is for 1yr training @ £92.50pw for 16hours pw, and hopefully a paid post will follow from this. 

Potentially, my thinking is she can class it as supported permitted work, and is below the money limit for that. There appears to be no limit on the hours worked for this permitted work. And there is no limit for how long this can be done for.

The permitted work rule allows the income to be ignored.

So she stays on IB-ESA. Entitlement to IB-ESA leads to full WTC, eligibility is based on disability route. (There is no liability for rent or council tax in this particular case)

Hence, client can retain DLA, ESA, and get the earnings and full WTC. Clearly, she will still need to pass the WCA, and her activities when working are something that may be considered in applying this, or later when the DLA is up for renewal.

Am I right in thinking:

a)the supported permitted work rule has a money limit, but no hours limit ( ESA Regs 45, esp. 3(b))?

b)The normal rules on remunerative/full time work do not apply to ESA (i.e. 16 hour limit for the claimant)? (CPAG @ p687 suggests this, as do the ESA Regs, 40 – 46)

Many thanks……

Won’t WTC, as distinct from earnings, be deducted from IRESA, without disregard? Indeed it would wipe out IRESA at assessment phase rate. Qualifies for WTC in all probability under normal rules, without IRESA, so isn’t that a safer route?

Richard Atkinson

Doesn’t the supervised work rule have an implied hours limit, unless it is work to which the national minimum wage does not apply? As far as I can see, it isn’t excepted from the scheme.

Ariadne - 21 December 2011 06:10 PM

Doesn’t the supervised work rule have an implied hours limit, unless it is work to which the national minimum wage does not apply? As far as I can see, it isn’t excepted from the scheme.

Not sure of an implied hours limit. Certainly my reading of the regs would be that as there is an explicit limit in other areas, the absence of one in this rule would mean there is no limit. The link with NMW would rule out 16 hours of work I agree but there are circumtances in which the NMW does not need to be paid I think, hence the hours could go above 16….........

Thanks for reply Dolge. Had not thought about WTC coming off the IBESA, which it will do obv. Its going to depend on whether she can say go for 15hrs or if better off on 16hrs and WTC.

Many thanks.