I think it is still “exempt work”, assuming the undisclosed partner is the only thing different from before. In that case, they will either:
– remain on contribution based ESA without the income-related top-up, or
– be busted down to “credits only”
but either way, assuming they have not been found fit for work at any time, their work remains exempt work. Key extracts from para 10A of Schedule 4 to the HB Regs:
(1) Where—
(a)the claimant (or if the claimant is a member of a couple, at least one member of that couple) is a person to whom sub-paragraph (5) applies
(5) This sub-paragraph applies to a person who is—
(a) in receipt of a contributory employment and support allowance;
(d) being credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975.
If they had to be on ESA(ir) to get the HB earnings disregard there wouldn’t be any point in having the disregard would there?
