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The impact of work on benefits

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

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The impact of work on benefits

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

  2. 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

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

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

  5. 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

  6. 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 1st Oct) • Supported permitted work - work & earn up to £92 per week – indefinite with no hours limit

  7. 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

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

  9. 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

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

  11. 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 £144.65 • She receives full HB/CTB • Total income £210.40 • 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

  12. 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 £18.65. • In receipt of full HB/CTB • Total income £127.10 • 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

  13. 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 = £142.75 Supported Job at 16 hours at £5.73 • DLA stays the same • IB= £105.45 • Net wage = £77.16 • WTC= £85.00 • Total income=£304.91

  14. Case Study 4 • Current situation • Steve is 30 and lives in his own tenancy • He is in receipt of IB £105.45 • 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

  15. Case Study 4 continued • Steve gets a job 18 hours a week at £5.73 an hour and earns £103.14 • 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

  16. 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

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