Employment and Support Allowance (ESA)
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Starting up a small business whilst on ESA

Tinks07Tinks07 Member Posts: 3 Listener
Hi there.

im getting really confused by all the different types of advice I’ve been given. I want to turn my hobby into a small business. I won’t be making any profit for a few years & due to my illnesses will only be working a max of 10 hrs per week. I’m on support ESA & wondering how if will affect my benefits. I’ve even spoke to 2 diff advisors & 1 said I can earn up to £120 per week & work up to 16 hrs per week & another didn’t know. Please can some1 help, I find things difficult to understand at the best of times. Many thanks Tinks07

Replies

  • Sam_ScopeSam_Scope Member Posts: 7,732 Disability Gamechanger
    Welcome to the community @Tinks07

    There is some information about self employment for disabled people here, I hope it helps.

    @pia_scope or @rian_scope can you help?
    Scope
    Senior online community officer
  • poppy123456poppy123456 Community champion Posts: 19,194 Disability Gamechanger
    For permitted work it's less than 16 hours, so no more than 15.59 hours per week and earn up to £120 per week. You MUST inform ESA and ask them to send you a PW1 form. Google search gives the info you need. See this link.
    https://www.entitledto.co.uk/help/Permitted-Work-Rules

    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • rian_scoperian_scope Member Posts: 35 Connected
    @Tinks07

    Good Morning TInk07 I am Rian from Scope Support to Work.
    I can only echo what Poppy has said as this is the information i would provide.
    Rian
    Scope Employment Advisor
    Phone: 0300 222 5742
    Email: [email protected]
    www.scope.org.uk/supporttowork
  • Tinks07Tinks07 Member Posts: 3 Listener
    Thank you so much ev1, they are sending me out a permitted to work form. Its just a worry as it wont be regular income or hours (max hours I can craft for a week is around 10 hours & there could be 1 week I might make a sale then nothing for months). At least they have been informed & as I said they're sending me out the form.

    Again many thanks everyone xxx

  • [Deleted User][Deleted User] Posts: 0 Pioneering
    Hi Tinks07

    Do check before you give up your ESA whether you are in a full service Universal Credit area.

    If you are, and irrespective of whether you would be better off on this benefit than on your current ESA or not, you would not be able to re-claim the benefit if you have to have benefits again because the work doesn't work out. 

    It's fine to decide to do the work anyway, but it is helpful to know that you are taking a risk with your income, if you are. 

    Check your geographical area's universal credit status here:
    www.entitledto.co.uk

    Do a benefit check to see how your change of circumstances might affect you here:
    https://www.scope.org.uk/support/disabled-people/benefits/check

    Best wishes

    Gill_Scope
    Benefits and Finance Information SPecialist
    Scope Helpline
    Tel: 0808 8003333 






  • mayfishmayfish Member Posts: 4 Listener
    Hi, I've just posted a similar question, I'm wondering if you found an answer? 
  • poppy123456poppy123456 Community champion Posts: 19,194 Disability Gamechanger
    mayfish said:
    Hi, I've just posted a similar question, I'm wondering if you found an answer? 
    The permitted work rules are in a comment above. Here's link that explains it.

    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • Tinks07Tinks07 Member Posts: 3 Listener
    Hi there Mayfish
    I went to CAB & the rules are you can work up to 15 hrs 59 mins per week & not earn over £120 per week. That’s what they advised me & the 1st person at DWP said the same too even though the other person at DWP wasn’t sure but after seeing CAB & reading the little info I’m sure to say that’s the rules without it affecting your benefits xxx
  • BenefitsTrainingCoBenefitsTrainingCo Member Posts: 2,692 Pioneering
    Hi all,

    The information given by Tinks07 is correct. I would add though, that if someone does permitted work, it may lead to the DWP bringing forward their review for the Work Capability Assessment. I'm not saying it will, because it doesn't always happen, but it is something to consider when making a decision.

    Lee
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
  • mayfishmayfish Member Posts: 4 Listener
    Hi Lee, thanks for this  It's something I'd already thought about as a side effect. And would have my answers primed if that happened! But thanks for coming back to me.
    I guess the bit I'm stuck on, is how to account for items sold vs costs.
    Thanks
    Paul
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