FACTSHEET No. 9

Work for people who are sick or disabled

This factsheet sets out the work you can do if you are on sickness or disability benefits. If, after reading it, you want to find out more or need further help see the Where can I get more help or information? section below.

I. Permitted work

If you are getting employment and support allowance (ESA) , incapacity benefit (IB), severe disablement allowance (SDA), national insurance credits or income support (IS) because of incapacity for work you are allowed to do some permitted work.

You do not need the permission of a doctor to do permitted work but you should tell the Department for Work and Pensions (DWP) if you are working. 

1. Permitted work for those on employment and support allowance, incapacity benefit, severe disablement allowance or national insurance credits

You have a choice of permitted work options depending on your circumstances:

  1. Permitted Work Lower Limit - under this option you can earn up to £20 a week for an unlimited period.

  2. Permitted Work Higher Limit - you can work for a 52 week period if the work is for less than 16 hours a week and your earnings do not exceed £95 a week after deductions. Once a period starts even weeks when you do no work count towards the 52 week limit. After you have done 52 weeks work there must be a gap of at least 52 weeks before you can work again, whereupon another 52 weeks work is permitted. 

  3. Supported permitted work - if you choose this work option you must be supervised by someone who is employed by a public or local authority, a community interest organisation or voluntary organisation which provides or finds work for people with disabilities. You cannot earn more than £95 a week.

  4. Work done as part of a treatment programme done under medical supervision whilst someone is an in-patient or regularly attending as an out-patient of a hospital or similar institution. Again the limit is £95 per week.

  5. If you are exempt from the IB/IS personal capability assessment - you can work for an unlimited period, if the work is for less than 16 hours a week and your earnings do not exceed £95 a week after deductions. (If you receive IS, your earnings over £20 a week will count as income for IS.)

  6. You are on ESA and you have limited capability for work related activity (you are in the support group) - you can work for an unlimited period, if the work is for less than 16 hours a week and your earnings do not exceed £95 a week after deductions.

2. Supported permitted work

Guidance suggests that supported permitted work is work done by people who have a long term disability that has had "a significant impact on their ability to learn or sustain a traditional job which will always, or for a number of years, prevent them from working more than a few hours each week".

It should also be work that a person can do only with the support and supervision of someone other than their employer and be supervised by someone employed by a public or local authority or voluntary organisation which provides or finds work for people with disabilities.

The support worker must direct and oversee the performance of the worker regularly and the supervision must be more than the normal support provided in the workplace by employers. 

3. Permitted work for those on income support and other means tested benefits

If you are on incapacity benefit or severe disablement allowance and you are also on income support you can do permitted work but any earnings over £20 will be deducted from your income support.

If you are on employment and support allowance, incapacity benefit or severe disablement allowance and are on housing benefit or council tax benefit you are allowed to keep all your permitted work earnings. These earnings will not affect your benefit.

II. Other allowed work

The following kinds of work are also allowed:

  • care of a relative or domestic tasks carried out in your own home

  • work done as a councillor. Any payments over £95 a week will be deducted from your contributory employment and support allowance, incapacity benefit or severe disablement allowance.

  • any activity in an emergency, to protect another person, or to prevent serious damage to property or livestock

  • duties as a member of the DLA Advisory Board or as a ‘disability member’ of an appeal tribunal – one day a week is allowed (or two half days)

  • an approved work trial arranged in writing with the employer by the DWP (or an organisation providing services to the DWP) for which you will receive no wages

  • self-employed work done whilst you are 'test trading' for up to 26 weeks with help from a self-employment provider arranged by Jobcentre Plus.

1. What about the minimum wage?

Generally if you do permitted work you should be paid at least the minimum wage for any work you are allowed to do.

III. Disability Living Allowance

If you are on Disability Living Allowance (DLA) and are not claiming one of the other benefits mentioned in this factsheet there are no restrictions placed on the work you do providing you satisfy the DLA rules. You should inform the disability benefits unit if you start work.

IV. Voluntary Work

If you get incapacity benefit or severe disablement allowance you are allowed to do voluntary work for anyone other than a close relative (parent (or in-law or step-parent), son/daughter (in-law/step), brother, sister or the partner of any of these).

If you get employment and support allowance or income support, you are allowed to do voluntary work for anyone other than a relative.

You must not be paid for your work, other than expenses 'reasonably incurred by [you] in connection with that work'. Permitted expenses could include travel, meals, childminding, the costs of caring for a dependant, equipment needed for work and use of a telephone. There is no limit on the number of hours you can volunteer.

If you get income support you can do voluntary work without your income support being affected. If you get income support on the basis of being incapable of work, the work must be for someone other than a family member, otherwise you will be regarded as capable of work. Care you provide for a relative will not count as voluntary work.

V. Finding full time work

If you stop claiming benefits to begin work but then stop working and reclaim you may be allowed to return to your previous benefit on the same rate or terms as before.
To do this you have to satisfy one of the linking rules. You can return to your previous benefit on the same rate or terms as before if you reclaim employment and support allowance:

  • within 12 weeks.

  • within 104 weeks and you are a ‘work or training beneficiary’. To be a work or training beneficiary you must have had a limited capability for work for more than 13 weeks in your previous ESA award. You must also start work within one month of your entitlement to benefit ceasing.

Note that new claims for incapacity benefit can not be made after 31 January 2011. This change has also meant the abolition of the rules which allowed you to return to incapacity benefit, or another of the incapacity-related benefits, on the same rate or terms as before if you stopped work due to your health. You can find out more about the linking rules in our disability rights handbook . You should also get advice before you consider full time work.

1. Housing benefit and council tax benefit extended payments

Your housing benefit and council tax benefit can continue at your old rate for four weeks if you find work and you were getting:

  • employment and support allowance (ESA)

  • incapacity benefit (IB)

  • income support (IS)

  • income-based jobseeker's allowance (JSA)

  • severe disablement allowance (SDA)

To get housing benefit/council tax benefit extended payments you must have been on one of the above benefits for at least 26 weeks and your job must be expected to last at least 5 weeks. You do not need to make a claim to receive extended payments.

VI.Where can I get help with claiming?
You can get help about permitted work at a local advice centre, such as the Central Africa’s Rights & AIDS (CARA) Society or any citizen’s advice bureau.

You can also get more information about the benefits mentioned on our website at www.cara-online.org. Much of this information is contained in factsheets available at www.cara-online.org.

You can also obtain copies of these factsheets/publications by contacting CARA, 18 - 22 Ashwin Street, Dalston, Hackney, London E8 3DL United Kingdom - Tel: +44 (0) 844 478 0015 -Mob: +44 (0) 795 695 2645 -Fax: +44 (0) 872 115 8436 -Email: info@cara-online.org

Updated 8 April 2011