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Friday, 30 September 2011

Benefits and help when going back to work

When you return to work after being on benefit, some of your benefits will carry on for a short while. Find out more, including the benefits and support you may be able to get once you're working.

Help with housing costs

If you were getting help with your housing costs while you were out of work, you may carry on getting this. This is if you have claimed one of the following benefits for at least 26 weeks continuously before starting work:

  • income-based Jobseeker's Allowance
  • income-related Employment and Support Allowance
  • Income Support

You may then continue to get the following benefits for up to four weeks:

  • Extended Payment of Housing Benefit
  • Extended Payment of Council Tax Benefit
  • Mortgage Interest Run On

You may continue to get Housing Benefit and Council Tax Benefit after this time if:

  • you're on a low wage
  • your housing costs are below a certain level

Whilst you may continue to receive help, as stated above, this will depend on the number of hours worked and the amount earned. You must declare the details of the job so that this can be worked out.

If you are a homeowner and have to reclaim benefit you may not have to wait until you get help again with your mortgage costs. Contact Jobcentre Plus to find out more.

Tax credits

A tax credit is a payment that you receive regularly. Despite the name, it isn't a credit against your tax bill.

Nine out of ten families with children qualify for tax credits, but you don't need to have children to claim. You may also qualify if you are working and on a low income.

Tax credits may also be able to help with the costs of your childcare. Generally, to qualify for help with childcare costs through tax credits, you'll need to:

  • work for at least 16 hours per week
  • have worked more than 16 hours per week before going on adoption, maternity, paternity or sick leave

In Work Credit

In Work Credit is a fixed tax-free payment of £40 per week (£60 per week in London) for parents bringing up children alone. It is payable for up to 52 weeks on top of your earnings, when you start work of at least 16 hours per week. You need to claim it before you start work.

You may get In Work Credit if you:

  • are bringing up children on your own
  • have at least one child living with you who is under the age of 16 
  • are starting work of at least 16 hours a week
  • expect that work to last five weeks or more

You must also have been claiming one or a combination of the following benefits for at least 52 weeks. Short breaks of no more than five days are allowed:

  • Income Support
  • Jobseeker’s Allowance
  • Employment and Support Allowance - if you lost entitlement to Income Support due to the age of your youngest child and were not able to claim Jobseeker's Allowance because you were ill

Job Grant

A Job Grant is a tax-free lump sum. You may be eligible for a Job Grant if you have been claiming one of the following benefits:

  • Employment and Support Allowance
  • Incapacity Benefit
  • Income Support
  • Jobseeker's Allowance
  • Severe Disablement Allowance

You will need to have been claiming benefit continuously for more than six months and starting work of more than 16 hours per week.

You'll automatically get Job Grant if you're eligible. You just need to make sure you tell your Jobcentre Plus Office that you're starting work. You'll be paid in the same way as you were paid your benefit.

Return to Work Credit

Return to Work Credit is a tax-free payment of £40 per week for people that have, or have had, a health condition or disability.

It can be payable for up to 52 weeks as long as:

  • your job is expected to last at least five weeks
  • you are working on average over 16 hours a week
  • you are earning no more than £15,000, before tax, per year
  • you are earning at least the National Minimum Wage
  • you have been getting an incapacity benefit for 13 continuous weeks or more
  • you have started work or will be starting work within the five-week period immediately after being entitled to a qualifying benefit

You might not qualify if you claim either of the following benefits in the five weeks before starting work:

  • Jobseeker's Allowance
  • Income Support as a lone parent

Please contact your adviser or Jobcentre Plus for more details.

Help with travel expenses when attending job interviews

Help with travel costs incurred while attending job interviews is available through a limited fund which Jobcentre Plus advisers can access. The fund is discretionary and no one has an automatic right to help.

Please speak to your Jobcentre Plus adviser for more information about help available in your area.

Claiming benefits when you go back to work

There is a service - called 'In and Out of Work' – that makes it easier for you when you move in and out of work. If you, or your partner, have been getting one of the following benefits and you get a job, you only need to tell Jobcentre Plus:

  • Income Support
  • Jobseeker's Allowance

Jobcentre Plus will then let your local council and tax credit office know. Your local council will work out what Housing Benefit and Council Tax Benefit you may get. The tax credit office will work out what Child Tax Credit and Working Tax Credit you may get.

If your circumstances change when you are working, like working overtime, you must let your local council and tax credit office know. This is because your benefits could also change.

Use the online Benefits Adviser to find out how a change in your circumstances, such as starting work, may affect your benefits.

Shortened claim process for Income Support or Jobseeker's Allowance

If your Income Support or Jobseeker's Allowance claim ended less than 26 weeks ago your claim to benefits may be simpler and shorter. There must have been no change to your circumstances.

To make a claim for Jobseeker's Allowance or Income Support call 0800 055 66 88.

There is a Welsh language line on 0800 012 1888, and a textphone 0800 023 4888 if you have a speech or hearing impairment.

Lines are open from 8.00 am to 6.00 pm Monday to Friday.

The following are not considered as a change of circumstances:

  • you or someone you are claiming for is now pregnant
  • tax credits have been claimed or awarded

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