Permitted work and UC Work Allowance

Trying to work out what happens to Permitted Work rules with UC?  Do they no longer exist if someone gets UC?  Do they then only apply for people on CESA? 

Seems to be yet another of the hidden and unhelpful complications with UC which creates all sort of uncertainty for people who have LCW and who are thinking of working part time. 

The ESA higher permitted rate for single people with LCW is way less than the higher UC Work Allowance of £149.31pw and the UC lower Work Allowance for single people with LCW is about half the higher permitted work rate.

I can foresee some horrible better-off calculations involving whether to claim UC or CESA, looking at breaking claims, etc. 

IDS promised that this sort of disincentive would disappear, (yes, we all know he has a flexible approach to the truth).  Am I missing something?

You’re not missing anything.  The higher disregards for people with LCW is meant to compensate I suspect.

Permitted Work as such ceases to exist with Universal Credit.
Reg 22 gives the the disregards (now called work allowances), the highest relevant applies and it’s all tied to housing costs and whether or not you have them.

However!!! If you have LCW and are doing some work and your earnings are more than than the ‘relevant threshold’ you loose your LCW status. The ‘relevant threshold’ is 16 hrs at minimum wage so it really depends on your age. See reg 41 (2) and (3). You’re exempt if you are in the support group.

It’s analogous to earning over the earnings limit for ESA higher permitted/supported work.
M