Permitted Work under ESA

Hi,

I’ve got a couple of clients doing permitted work under ESA.  They have both gone over the permitted work allowance of £143 pw for 1 month due to receiving tips (they work in the hotel industry).  Is there any guidance on what happens in these situations-if they have just gone over PW allowance in 1 month-will ESA stop and they will have to make a UC claim ?
Also, how is the permitted work allowance calculated-do they look at an average over 1 year or do they calculate it on a monthly or weekly basis.  If paid monthly and there are 5 weeks in the month, do you say PW allowance is 5 times £143?

Any help would be appreciated!

You don’t convert the permitted work limit to a monthly amount. You have to convert the earnings to a weekly amount. If paid monthly the weekly equivalent is monthly amount x 12 / 52.

When earnings fluctuate there is scope for DWP to average them over a longer period than the payment period.

See 48094
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/541182/dmgch48.pdf

Thanks for this Ianb!