The impact of work on benefits What work am I able to do? Kimberley Swan-The Action Group

Aims of presentation To understand the names and categories of the main benefits for people with learning disabilities To understand the impact of working on those benefits To understand the impact of working through real life case studies

Categories of Benefits Unfit for work Minimum income Extra costs of disability Tax credits

Getting a job-The options Permitted Work Working full time 16+

Permitted Work lower limit Work & earning up to £20 per week – indefinite Any earnings above £20 and below £92 will affect Income Support and Housing Benefit but not Incapacity Benefit/Severe Disablement Allowance/Employment and Support Allowance

Permitted work-higher limit and supported Permitted work higher limit– work up to 16 hours for up to 52 weeks and earn no more than £92 per week (£93 from 1 st Oct) Supported permitted work - work & earn up to £92 per week – indefinite with no hours limit

Effect on Housing/Council Tax Benefit If on DLA any earned income over £20 may have an effect on Housing/Council Tax Benefit From April 2010 if in receipt of ESA, IB or SDA you can earn up to £93 permitted work limit and still receive full Housing/Council Tax Benefit

Working 16 hours plus Income Support stops Incapacity Benefits might stop –wages? Claim Working Tax Credit

Check list when starting work Notify Income Support Notify Incapacity Benefit/SDA Claim WTC? (if 16+ hours) Notify Housing Benefit Job grants Return to work Credits

Financial assistance starting work 16+ Job grants Return to work Credits Extended payment of Housing/Council Tax Benefit

Case Study 1 Current situation Michelle is 40 and lives in her own tenancy In receipt of DLA of Middle rate care £47.10 and Low rate Mobility £18.65 She is in receipt of Income Support of £ She receives full HB/CTB Total income £ Works 3 hours per week Michelle get a job for 3 hours a week at £5.73 and earns £17.19 No effect on any benefits Total income £227.59

Case Study 2 Current situation Trevor is 22 and lives in his own tenancy. He is in receipt of ESA Income based of £89.80 and DLA-LRC £18.65 and LRM £ In receipt of full HB/CTB Total income £ Job of 15 hours per week Trevor starts a job at £6.00 per hour and earns £90 per week No effect on any benefits Total income £217.10

Case Study 3 Current situation Peter is 23 and lives with his parents In receipt of IB of £105.45, DLA-LRC of £18.65 and LRM of £18.65 Total income per week = £ Supported Job at 16 hours at £5.73 DLA stays the same IB= £ Net wage = £77.16 WTC= £85.00 Total income=£304.91

Case Study 4 Current situation Steve is 30 and lives in his own tenancy He is in receipt of IB £ DLA of low rate care of £18.65 and Low rate mobility of £18.65 Is S.M.I exempt for CT -£8.87 rent to pay a week Total income after rent = £133.88

Case Study 4 continued Steve gets a job 18 hours a week at £5.73 an hour and earns £ His DLA remains the same His IB stops He receives WTC of £85.00 a week He is eligible to claim Return to Work Credit of £40 for 52 weeks Would make a larger contribution towards his rent approx -£38.67 Total income after rent =226.77

Conclusions Working less than 16 hours is not always the golden rule Earned income over £20 can have an impact on your benefits In some situations working 16 hours or plus can be the best financial option. However the rules are complex so if in doubt seek advice and get better off calculations done Report changes of circumstances in writing and keep a copy