If earning under Permitted Work and transferred to Universal Credit a WARNING FOR CLIENTS
My understanding is that if a claimant already has LCW/LCWRA on migration to UC then that continues to apply under reg 19 of the UC (Transitional Provisions) regs 2014.
The status isn’t lost automatically but the DWP may carry out a new WCA and could find them fit for work on the basis of that. But of course they always carry out a new WCA whether you’re working or not.
If someone hasn’t previously been assessed under the WCA and they are earning over the threshold then they can be referred for a WCA but only if they are getting PIP/DLA/AA (reg 41(2)(a)) - I think that’s the bit about PIP/DLA/AA that you are referring to.
Daphne thanks for this. Reg 41 is confusing.
The CPAG Welfare Rights Bulletin page 4 written by Simon Osborn gives another understanding. See para Work and Study.
My query is also about the amount of earnings. Permitted Work in ESA allows £125.50 week.
Universal Credit with a LCW has earnings at ‘The National Minimum Wage Regulations x 16hrs’ which actually gives £125.28 a week if not rounded up.
This could lead to a person on ESA who is earning £125.50 a week who is transferred to UC with earnings of £125.28 a week or more triggering an assessment IF I have understood the reg that is.
I am trying to ask for clarification from DWP at a senior level. Does anybody have a contact?
There will also be issues regarding ESA ‘permitted work’ earnings and migrating to UC because the UC earnings allowances are less than the PW limit. For claimants who are naturally migrated and are undertaking PW they will almost certainly be worse off under UC before considering the additional loss of SDP/EDP etc. (or the ‘disabled worker’ element of WTC).
I did some training prior to FSUC roll out locally for an organistaion that provides ‘supported permitted work’ and a key part of their funding is to ‘progress’ clients from PW to ‘full-time’ work and Working Tax Credits. We did some illustrative figures to demonstate the ‘losses’ their clients could suffer under UC new claims / ‘natural migration’. For example - still in assessement period, already have LCFW or LCFWRA, have SDP/EDP, with / without housing costs, earnings received less than monthly, earnings increase above the ‘relevant threshold’ etc. etc.
That was without considering the impacts of ‘manged migration’ on this client group - remember its all about simplification!