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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.
Thanks for this Ianb!