This is intended to help people understand the rules for working while disabled under the UC rules.
Many are doing 'permitted work' under ESA or IB, and the new rules are radically different.
It is not to discuss policy - if you wish to do that, please start a new thread.
I hope others will clarify misunderstandings.
At the moment, there is a confusing morass of Permitted Work regulations, which vary between those still receiving IB, those on ESA-income based, and ESA-contribution based.
If you have to claim UC - none of this applies.
Firstly - you must have 'limited capability for work' or 'limited capacity for work related activity'.
http://www.legislation.gov.uk/ukdsi/.../regulation/39
This is basically a similar test to the existing ESA rules, which I won't go into further. A decision for ESA purposes carries over to UC.
You cannot be found to have limited capacity of work - starting from being fit - if you are earning over 16 hours minimum wage.
However - someone with an existing assessment that they are not fit for work can have this extended.
Personal allowances.
http://www.legislation.gov.uk/ukdsi/.../regulation/22
The table in the above regulation lists amounts you can work without it affecting your UC.
They differ markedly if you have any help at all with housing costs, and if you are a couple or not.
For example, in my situation, a single person with no housing costs, and a limited capacity for work, I can earn £647/mo - without it affecting my UC.
If I had a partner move in - our combined earnings still could not exceed £647 without it affecting our UC.
With any housing costs help - even a few pounds a week - this changes dramatically.
The above figure falls from £647/mo to £111/mo.
http://www.legislation.gov.uk/ukdsi/.../regulation/36
gives the amounts of UC you are entitled to - without any work income taken into account.
At the moment, a single claimant with no housing costs over 25 in the support group can earn £99/week on top of their £105 ESA.
This would be a maximum of £204/week, or £884/mo.
Under UC, the 'support group' payment rises to £614/mo, and they can earn up to £647, taking them to a total of £1261/mo before UC begins to taper off.
This is the best case.
If you are part of a couple, the above allowances apply to you both.
In short.
For single claimants with no housing costs, the new scheme is lots better than the existing permitted work rules.
There is a monthly reporting period - not weekly - this will help those whos abilities fluctuate.
The limits in your total earnings are over half again as generous, and there are no hours limits.
Even if you go over the 'limits' - your benefit is just gradually tapered, not eliminated.
There is no insane 'year on, year off' as with the existing permitted work scheme under ESA-work related group.
For those with housing costs, or worse, couples with housing costs - it's much less generous, though the same benefits above apply.
A particularly nasty additional cliff-edge occurs if any earning at all is done, and you would otherwise be eligible for SMI. Then you don't get any SMI at all.