If you or the person you are looking after plan to go into paid employment you may lose benefits you are currently receiving.
There are some benefits which continue, at least for a time, once you go back to work. You may be able to access grants that are designed to be incentives to encourage people back into paid work and to stay in paid work.
Some of this help is available if you are already in paid work but want to increase your hours which would mean that you are no longer entitled to existing benefits.
Help with paying for housing
You can continue to receive help with mortgage interest or payment of Housing Benefit and Council Tax Benefit for a period of time after going into paid work:
- Mortgage interest “run-on”, or
- Mortgage interest can continue to be paid if you or your partner were in receipt of income-based Jobseeker's Allowance or Income Support for at least 26 weeks before going into full time paid work. Full-time work means a minimum of 16 hours or 24 hours depending on the circumstances.
If you qualify you would be paid mortgage interest run on for the first four weeks you are in full time work.
Extended payments of Housing Benefit and Council Tax Benefit
If you or your partner were in receipt of income based Jobseeker's Allowance or Income Support for at least 26 weeks before going into full time paid work you can continue to receive Housing Benefit and Council Tax Benefit for four weeks.
Job grant
A job grant is a one off tax-free payment which is £100 for single people and couples without children and £250 for lone parents and couples with children.
The grant is intended to cover the one off costs of returning to work such as clothes or transport. To be eligible, you must have been in receipt of certain benefits for the previous 26 weeks. These benefits include Income Support, Jobseeker’s Allowance, Incapacity Benefit and Employment and Support Allowance.
The job you are taking must be at least 16 hours a week and likely to last at least five weeks.
There are certain other situations in which a Job Grant could be paid. You should ask your local Jobcentre Plus office for more details.
Return to Work Credit after a period of ill-health
Return to Work Credit is a payment of £40 a week which is paid up to 12 months. You may be eligible if you go back to work after a period of ill-heath, as long as you have been claiming certain benefits. Those benefits include Incapacity Benefit, Employment and Support Allowance and Income Support paid because of sickness or disability.
To qualify you must work at least 16 hours a week in a job that is expected to last for more than five weeks. You must earn no more than £15,000 per year.
Return to work credit is a non taxable payment and does not count as income for the purposes of Housing Benefit or Council Tax Benefit. You may be able to claim Working Tax Credit and Child Tax Credit at the same time.
In work credit
This is similar to the return to work credit but targeted at lone parents. It’s a tax free payment of £40 per week (£60 per week in London) for parents bringing up children alone who work at least 16 hours a week. It is payable for up to 12 months. The job must be expected to last for five weeks or more. In work credit cannot be paid at the same time as return to work credit.
The advisers' discretion fund
Personal advisers at Jobcentre Plus offices have discretion to award a payment from this fund. Payments can be made, for example, to buy a new suit to attend an interview or to help pay initial childcare and travel costs. To be eligible you must be on a New Deal scheme or entitled to certain benefits, such as Jobseeker’s Allowance, Income Support or Carer’s Allowance.
In work emergency discretion fund
This is a discretionary fund available to help If you move into work of 16 or more hours per week and have a financial emergency which would mean that there is a risk of having to leave work there. You could receive payments of up to £300 from your personal adviser at the Jobcentre during the first 26 weeks of your employment.
The official government source of information about benefits is Directgov
