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Employment and Support Allowance and Permitted Work
Written by
Georgina, Founder of Purpl
Published on
September 21, 2024
Most people with disabilities want to work, however, the reality is that depending on your disability you may struggle to work full time. You may already be receiving Personal Independence Payments (PIP) to help manage the additional costs that come with being disabled but that doesn’t mean you can’t still have a job and earn a salary. PIP is not means tested and is completely separate from how much you may or may not earn.
This guide will talk you through the New Style Employment and Support Allowance and what happens if you want to work whilst claiming this benefit.
- What is the New Style ESA?
- Who Qualifies for ESA?
- How to Apply for the New Style ESA
- What Work can I do When Receiving ESA?
- What is Permitted Work?
- What is Supported Permitted Work?
- What is a PW1 Form?
- Frequently Asked Questions
What is the New Style Employment and Support Allowance?
The new style ESA is a contribution based disability benefit that the UK government gives to people with a limited capacity for work due to their disability or a health condition.
There were initially two types of ESA:
- income-related Employment and Support Allowance
- contributory/New Style Employment and Support Allowance
Income-related ESA is currently being replaced by Universal Credit. The government began notifying people that they will move to Universal Credit in September 2024, the aim is for everyone to be transferred over by the end of December 2025.
You can also apply for Universal Credit as well as the New Style ESA but your payments may be reduced.
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The new style ESA is based on your National Insurance contributions and is not means-tested, so even if your household has savings it will not impact you receiving ESA payments as long as you meet the criteria.
Who Qualifies for the New Style ESA
You can apply for the New Style Employment and Support Allowance (ESA) if you are under State Pension age and you have a disability or health condition that impacts how much you can work.
You will also need to have been paying National Insurance or have paid enough contributions to qualify for receiving ESA.
You can apply for Employment and Support Allowance if:
- you have worked as an employee or have been self-employed
- you have paid enough National Insurance contributions within the last 2 to 3 years (this also includes National Insurance Credits)
You can check your National Insurance record for any gaps in your National Insurance payments.
Please note that if you receive Statutory Sick Pay from your employer you are not eligible to claim ESA support.
How to Apply for ESA
To apply for ESA please read our ‘What is ESA and How to Apply’ guide to help you through the process. It details how much ESA allowance you might be able to receive as well as information on the employment and support application process and what’s involved in the process.
What Work can I do When Receiving ESA?
Just because you may not be able to work a full time role or specific types of work due to your disability it doesn’t mean you can’t still contribute to society and for many people they are keen to still work as much as they can within the boundaries of their physical or mental disability.
You can still receive your ESA benefit payment and work but it must fall into one of the following categories:
- ‘Permitted Work’ e.g. paid work that is within stated earning limits
- Voluntary work
- A Government approved work placement
- Emergency work to prevent harm coming to someone, or significant damage to property or livestock.
What is Permitted Work?
The Government want to encourage people to work even if they are limited by their disability. Permitted work has many benefits as it can help you to learn new skills, build your confidence and start exploring different types of work you could do and would enjoy despite your health condition.
So, even if you have a disability, illness, or health condition you may be able to do some work and keep your benefit and disability payments and still receive National Insurance credits for Employment and Support Allowance (ESA).
If you do decide to work and claim ESA you will need to complete a PW1 form.
Permitted work means you are able to:
- work for less than 16 hours each week
- earn no more than £183.50 each week*, after tax and National Insurance has been taken off
- get your normal amount of benefit
- build up your skills and experience
- be supported while you work – this is called ‘Supported Permitted Work’
There is no limit on the number of weeks you can do permitted or support permitted work.
If you need extra assistance or would like additional advice on permitted work please call the Employment and Support number on 0800 169 0310
*Amount stated is correct for April 2024
What is Supported Permitted Work?
Supported Permitted Work is for an individual who can only work a few hours a week and is supervised by a professional support worker. A professional support worker is someone who works for a public or for a voluntary organisation.
What is a PW1 Form?
Before you start working, you must complete a ‘permitted work PW1 form’ and post it to the address at the top of any ESA letters you have received. Please note you must not take this form into your Jobcentre Plus office.
If you think the work you want to do is Supported Permitted Work, your professional support worker must fill in their section on the permitted work PW1 form.
You will be informed if the work you wish to do meets the permitted work conditions. If you do work that does not meet the conditions, you may lose your benefit.
If you were not aware of the form and have already started working, you must complete the permitted work PW1 form and send it back straight away.
To get a copy of the permitted work PW1 form, go to www.gov.uk and search for PW1 or call the Employment and Support Allowance number on 0800 169 0310 if you need ESA Help and Guidance.
Frequently Asked Questions
Can I claim other benefits with ESA?
Yes, you may be eligible to claim PIP if your disability impacts your day to day life. You may also be eligible for other benefits dependent on your household income.
I haven’t paid National Insurance in the last few years, can I claim the new style ESA?
You are unlikely to be eligible for the new style ESA if you have not paid any NI contributions in the last 2 to 3 years
My Statutory Sick Pay has ended, can I apply for ESA?
Yes, you may now be entitled to receiving ESA payments. You can apply up to 3 months before your Statutory Sick Pay ends.
Related Articles
Understanding ESA and How to Apply
How to Apply For Access To Work – Disabled People In Work
How to Apply for PIP and Maximise the Benefits in the UK
