Who do these rules apply to?

They apply to you if you are receiving Employment Support Allowance / Incapacity Benefit or Income Support based on your incapacity for work.

Why are they important?

•  If you are on a benefit based on your incapacity for work, then you cannot normally do any work and still receive that benefit.

•  The Permitted Work Rules allow an exception to this. If you qualify, you can do some work and still receive incapacity-related benefit.

•  The idea is for you to test out your ability to work before you consider moving permanently into employment.

The types of ‘Permitted Work’

There are three main types:

•  ‘Lower Limit’. You can do a small amount of work so long as you do not earn more than £20 a week.

•  ‘Higher Limit’. You can work up to 16 hours a week and earn up to £92. You can do this for 26 weeks but this can be extended by a further 26 weeks if you have the support of someone like a New Deal job broker (see New Deal for Disabled People ) or a Disability Employment Advisor.

•  ‘Supported Permitted Work’. This is work supervised by an organization such as a charity or local authority which arranges work opportunities for people with disabilities. You can work up to 16 hours a week and earn up to £92. There is no limit to how long you can do this work.

Arranging Permitted Work

•  Permitted Work is purely a benefit arrangement — employers don't offer ‘permitted work’ and it's still down to you to find a part time job vacancy.

•  You are advised to tell the DWP either before you start this work or as soon as possible after you start.

•  Use form PW1 To tell the DWP about the work.

•  You will then receive a letter telling you whether the work has been accepted as permitted work. Make sure you receive this.

•  If you want to do the ‘higher limit’ or ‘supported’ permitted work (see above) we recommend that you talk to a personal advisor or a Disability Employment Advisor before starting. They can advise you on benefit implications and also could be helpful if you want to extend permitted work for an extra 26 weeks (see above).

Will my incapacity for work be reassessed if I do Permitted Work?

•  Not automatically. Just because you start Permitted Work you should not be routinely sent for another medical.

•  You may be referred to a DWP doctor who may carry out another medical. If so, the doctor could take into account the sort of tasks involved in the work you are doing.

Will I lose any benefit at all under these rules?

•  You will not lose any Employment Support Allowance / Incapacity Benefit so long as you stay within the 16 hour and £92 limits.

•  You could lose means-tested benefits such as Income Support, Housing Benefit and Council Tax Benefit. You should get advice on this.