12. I'm returning to work. Do all my benefits stop?

If you are returning to work, you won’t necessarily lose entitlement to all your benefits. For example:

• If you receive Disability Living Allowance, Attendance Allowance, Industrial Injuries Benefit or Reduced Earnings Allowance, you can continue to claim them while you are working.
• If you are a carer, you may be able to continue claiming Carer’s Allowance, depending on your circumstances and how much you earn.
• If you claim Incapacity Benefit, you may be able to continue claiming if your hours and earnings are below certain limits, though you must tell the benefit office that you are returning to work.
• If you claim Housing Benefit, Council Tax Benefit and help with NHS costs, for example prescription costs and dental treatment, you may be able to continue claiming these, depending on your income. You may also be able to get ‘extended payments’ of Housing Benefit and Council Tax Benefit during your first four weeks of work.
• If you are returning to work part-time and you will be working fewer than 16 hours a week, you may be able to claim Income Support or Jobseeker’s Allowance, depending on your income.
• You can continue to claim Child Tax Credit if you are working, but the amount you get may change because of your earnings.

There are several schemes to help you financially if you are moving from long-term benefits back into work. They include, among others, training programmes and allowances, and help with child care costs. You can find out more about these through your local Jobcentre Plus.

You may be entitled to working tax credit once you start work, depending on your income and the number of hours you are working. You can find out more about tax credits from your local Jobcentre Plus, the Tax Credits Helpline on 0845 300 3900, or the website of Her Majesty’s Revenue and Customs (HMRC).

If you are returning to work you should tell the agencies that pay your benefits, even if you do not think it will affect your benefits. If you do not do this you could be overpaid, or even investigated for fraud. You should state the exact date you intend to start work, the number of hours you will be working and your rate of pay. If you are no longer entitled to benefit, the agency will write to tell you.

If you need help with leaving the benefit system or any other aspect of welfare benefits, we recommend that you speak to one of our welfare benefit advisers on 0845 345 4 345 for specialist advice. Telephone specialist advice is only available if you qualify for legal aid.

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