Can I still get DLA if I am working?

DLA is not means tested, and entitlement to DLA is based on disability rather than incapacity for work: therefore there are no specific rules regarding working. It is possible to work full-time and receive DLA - even at the higher rates. Indeed, there are many people with HIV who qualify for DLA whilst in full-time work. In theory going back to work may not affect your DLA payments. However, if you are considering returning to work, this is likely to be because there is a change in your circumstances, for example an improvement in your health. This change may mean that the DSS can look again at your DLA to see whether you are still entitled to receive it.

Can the DWP stop my DLA?

The DWP can review your DLA at any time, if there has been a relevant change in circumstances. It may be possible to argue that starting work is not in itself a relevant change - as there are no specific rules regarding working and DLA. However, an improvement in your health that leads to better mobility or a change in the amount of care you need certainly is a relevant change of circumstances.

If the DWP decide there has been a relevant change in your circumstances, this does not mean your DLA will automatically be stopped. The DWP will look at your case again and will assess whether you still have care needs and/or mobility problems. The DWP may decide that you are still entitled to DLA, but possibly at a lower rate.

Do I have to tell the DWP if I start working?

If you are receiving DLA, you are obliged to tell the DWP if your circumstances change. If you are paid too much benefit because you fail to disclose a material fact, then you may have to repay the overpayment. There are no rules that prevent you working and claiming DLA, so it could be argued that starting work is not a material fact. However, if you feel able to work because your health has improved to a point where you no longer have care needs and/or mobility problems the clearly this would be a material fact that you have a duty to report to the DWP.

What can I do if my DLA is stopped?

If your DLA is stopped following a return to work, you should always get advice. It may be possible for you to appeal and argue that the DWP had no grounds to review your DLA because there had not been a relevant change in your circumstances. If the DWP did establish correct grounds for the review, then you may be able to argue that even though your circumstances have changed, you still have mobility problems and/or care needs which entitle you to DLA.

Can I claim DLA again?

If your DLA has been stopped, then you can make a fresh claim at any time if your health deteriorates. If you make this claim within two years of a previous award then you may be entitled to DLA immediately. Otherwise you will usually need to show that you have had care needs and/or mobility problems for at least three months before the DLA can be paid again.

Incapacity Benefit (IB)

It is not usually possible to do any work whilst claiming IB. This is because IB is paid on the condition that you are incapable of work. If you actually do any work, even if it is just a few hours a week, then the DWP will treat you as fit for work and your IB will stop. There are some limited exceptions made for voluntary work and work which is undertaken as part of the permitted work scheme.

How much voluntary work can I do?

In theory there is no limit to the number of hours of voluntary work that you can do for someone other than a 'close relative', whilst still being able to satisfy the Benefits Agency that you continue to be incapable of work.  However, you should note that the DWP could take into account the amount of voluntary work you do as part of any personal capability assessment to determine your incapacity for work. It maybe advisable therefore, to restrict any voluntary work to less than 16 hours per week.

What is permitted work?

This is a scheme that allows you to do a limited amount of work whilst retaining your right to benefits. There are two levels of permitted work called the higher and lower limits.

The permitted work lower limit allows you:

• To work for less than 16 hours per week.
• To earn no more than £20 per week.
• To work for an indefinite period.

The permitted work higher limit allows you:

• To work for less than 16 hours per week.
• To earn no more than £78 per week.
• To work for a period of up to 26 weeks in the first instance with a possible extension of up to 52 weeks.

There are slightly different rules for people undertaking permitted work as part of a treatment programme or a supported employment programme.

You must inform the DWP before undertaking any permitted work. It is important to bear in mind that if you are getting Income Support on the basis of incapacity, and you undertake higher limit permitted work, your IS will be reduced pound for pound after the first £20 of your earnings. If you receive Incapacity Benefit no reduction will be made.

If I stop claiming IB, will there be any problems if I have to reclaim in the future?

There is a 52-week linking rule for IB, called the Welfare to Work Beneficiary scheme, for those who have been claiming benefit on the basis of incapacity for 28 weeks and who stop claiming because of starting work. This means that if you try to go back to work, but find your health is too poor, you can go straight back on to your previous rate of IB provided you give up work within the 52 week linking period and you provide a sick note form your doctor. If you successfully claim the disability element of the Working Tax Credit when you return to work, the linking period is extended further from 52 weeks to two years. In order to qualify for this protection you have to specifically request it within four weeks of starting work. Do not assume that you have the protection until you receive written confirmation from the DWP.

In April 1995, Incapacity Benefits was brought in to replace Invalidity Benefit. If you have been in receipt of Incapacity/Invalidity Benefit since before April 1995 then you may be getting transitional protection. This means your current benefit will be non-taxable and may include an earnings related addition (SERPS) based on your previous wages. If a fresh claim is made under the new rules, IB will be taxable and may be paid at a lower rate, as it will not include this addition. Seek advice if you think this may apply to you.