Permitted Work Earnings and Housing Benefit/Council Tax Benefit
Currently people who claim Employment and Support Allowance, Incapacity Benefit or Severe Disablement Allowance can earn up to £92 per week without it affecting the amount of these benefits – this is called permitted work.
However, Housing Benefit and Council Tax Benefit will treat any earnings above the £20 per week disregard as income for the purpose of calculating entitlement to benefit. This means that many benefit claimants pay additional rent/council tax whilst doing permitted work.
The DWP has acknowledged that this acts as a disincentive to claimants to try out work and plans to change the rules from April 2010. They will introduce a new permitted work earnings disregard of up to £92 per week. This will mean that the same rules will apply to claimants who receive ESA as a non means tested benefit, as those which apply when it is paid as an income related benefit (i.e. that earnings from permitted work will be fully disregarded to a maximum of £92)
last updated on 11th June 2009