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Self Employment whilst on Both ESA & UC - permitted work and earnings thresholds
- beabea101
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3 weeks 12 hours ago #296080 by beabea101
Self Employment whilst on Both ESA & UC - permitted work and earnings thresholds was created by beabea101
This is a bit complicated and I can't get a definitive answer anywhere. I am currently on UC in the LWCRA group, and also in receipt of legacy style ESA. The ESA amount is deducted from my UC amount each month. I would love to become self employed but I don't understand the earnings thresholds and how it would work:
On UC with LCWRA I could earn up to £404 before they begin deducting 55p per £1, which I understand.
The complication is the ESA element, because of their "permitted work" threshold. If you earn over their threshold (£183 per week) then they close your ESA claim and stop your money. Do you know what would happen in this situation please? If the ESA is stopped, would UC just instantly top it up? So effectively I would then just be on UC only, but still getting the same amount each month as before ? Or would it mean losing the ESA amount completely, and being that much worse off each month?
On UC with LCWRA I could earn up to £404 before they begin deducting 55p per £1, which I understand.
The complication is the ESA element, because of their "permitted work" threshold. If you earn over their threshold (£183 per week) then they close your ESA claim and stop your money. Do you know what would happen in this situation please? If the ESA is stopped, would UC just instantly top it up? So effectively I would then just be on UC only, but still getting the same amount each month as before ? Or would it mean losing the ESA amount completely, and being that much worse off each month?
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- David
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3 weeks 10 hours ago #296083 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Self Employment whilst on Both ESA & UC - permitted work and earnings thresholds
Hi beabea101,
You say you receive UC so that means the only ESA you can receive is New Style ESA as when you claim UC all Legacy Benefits are closed and Old Conts ESA becomes New Style ESA. Your ESA is deducted £ for £ from your UC. Also with UC there is no such thing as Permitted Work. So to answer your question, you would not be financially worse off if you are getting UC and the ESA Conts was stopped.
Yes the Work Allowance for you would be £404 per month.
If you become self employed then the UC Minimum Income Floor would not apply as you get the LCWRA element.
David
You say you receive UC so that means the only ESA you can receive is New Style ESA as when you claim UC all Legacy Benefits are closed and Old Conts ESA becomes New Style ESA. Your ESA is deducted £ for £ from your UC. Also with UC there is no such thing as Permitted Work. So to answer your question, you would not be financially worse off if you are getting UC and the ESA Conts was stopped.
Yes the Work Allowance for you would be £404 per month.
If you become self employed then the UC Minimum Income Floor would not apply as you get the LCWRA element.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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