Change of circumstances - Starting Work

How starting paid work or doing voluntary work may affect the benefits you receive or may be entitled to.

Voluntary or paid work

If you start work ,either voluntary or paid, you must inform the office that pays your benefit of this change to your circumstances.

Benefits that may be affected by starting work	Benefits not affected by starting work
Carer's Allowance	Attendance Allowance
Employment and Support Allowance	Bereavement Allowance
Housing Benefit	Disability Living Allowance
Incapacity Benefit	Industrial Death Benefit
Income Support	Industrial Injuries Disablement Benefits
Jobseeker’s Allowance	Pneumoconiosis, Byssinosis & Misc. Disease Scheme Benefits
Reduced Earnings Allowance	Retirement Allowance
	War Disablement Pension
	War Widow's Pension
	Widowed Mother's Allowance
	Widowed Parent's Allowance
	Widow's Pension
	Workmen's Compensation (Supplementation) Scheme

Carer's Allowance

Work (full time and part time)

You can earn up to £95.00 per week after deductions have been taken off and money that is allowed for expenses. If earnings exceed £95.00 per week Carer's Allowance will cease.

Carer's Allowance Deductions and Allowable Expenses

Deductions are allowed for things like National Insurance contributions, income tax and one half of any money paid towards personal or occupational pension schemes.

If you are in receipt of Statutory Maternity Pay or Statutory Sick Pay any amounts received will be treated as earnings, however any allowable expenses may be affected whilst you are not working.

Expenses are allowed for other things you have to pay because they are a necessary part of the job. Expenses are also allowed for the cost of paying someone (not a close relative) to look after a child aged under 16, or the person being looked after, while you are at work. Expenses are allowed for up to a maximum of half the money earned after taking off National Insurance contributions, income tax and one half of any money paid towards personal or occupational pension schemes.

Further details of allowable expenses can be obtained from Disability and Carer’s Service.

Contact Disability and Carers Service (contacts section)

Employment and Support Allowance

If you do any work, including voluntary work; or start training and get a training allowance your payment of Employment and Support Allowance may be affected.

Further details can be obtained from Employment and Support Allowance.

Contact Employment and Support Allowance (contacts section)

Housing Benefit

If you receive Income Support or Jobseeker's Allowance or Employment and Support Allowance (income related) for 26 weeks you may be entitled to a further four weeks payment of your Housing Benefit. This extra benefit is known as Housing Benefit Extended Payment; and will be paid automatically to you if you satisfy the qualifying conditions.

Incapacity Benefit

Incapacity Benefit is paid to you if you suffer from the effects of an illness or disability. You are not expected to work or seek work as a condition for receiving benefit. As such, benefit cannot be paid to you if you do start work.

It is recognised, however, that allowing some work may help improve your medical condition and in some cases it can help your chances of a return to the labour market.

Permitted Work and Voluntary Work

If you are receiving Incapacity Benefit you may only work in permitted circumstances.

Permitted work introduces more flexible rules if you want to try paid work while still getting Incapacity Benefit because of illness or disability.

You can:

work for less than 16 hours a week, on average, and earn no more than £93.00 a week for 52 weeks, or
work for less than 16 hours a week, on average, and earn up to £93.00 a week for as long as your illness or disability is considered sufficiently severe that you meet the threshold of incapacity without undergoing a medical assessment, or
work and earn up to £20.00 a week, at any time, for as long as you are on benefit, or
do supported permitted work and earn no more than £93.00 a week for as long as you are on benefit

Supported permitted work means work that is supervised by someone who is employed by a public or local authority, or a voluntary organisation, whose job it is to arrange work for people with disabilities. This could be work done in the community or in a sheltered workshop. It also includes work as part of a hospital treatment programme.

You do not need your doctor's approval to start permitted work.

Linking Provisions

If you were getting Incapacity Benefit prior to taking a job, and leave benefit, you may be able to return to the same rate of Incapacity Benefit if you return to benefit within 104 weeks.