Higher Permitted Earnings Disregard

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  • #45387
    karencutter
    Participant

    Hi

    Having just returned from Year End Training, we were told to make sure we had the Higher Permitted Earning disregard split from October 2012, as it should be £99.50 from then.Does anyone know where I can find some paperwork to support this? I have searched recent circulars but cannot find anything?

    #127699
    Darren W
    Participant

    The new figure is in A2 though it incorrectly gives it from April 13. Not sure the DWP ever published anything with the figure on at the time.

    #127702
    Jon__Blackwell
    Participant

    Circular G4/2011 – paras 10-15 explains.

    https://hbinfo.org/wp-content/uploads/circulars-bulletins/g4-2011.pdf

    Basically it’s set at 16 x NMW rounded up to nearest 50p (ESA reg 45) – and so changes automatically each 1st October without any DWP input.

    #127703
    karencutter
    Participant

    Thank you very much

    I will flag it for the future :8)

    #128798
    Anonymous
    Guest

    I emailed DWP about this in October (and Novemebr and December) finally got a reply that the rates didn’t change in Oct 2012 but are changing in April 2013

    emaile me at sharron.knott@salford.gov.uk and I’ll send you the email

    #128802
    Jon__Blackwell
    Participant

    I’ve seen a few 2013/14 CTR schemes where this has drifted back to 97.50 …

    #128834
    cfowkes
    Participant

    i’m not sure I am any the wiser. I was told by the DWP that the figure was not changing in Oct 12 as well. Not sure which way to go on this,

    #128835
    cfowkes
    Participant

    i’m not sure I am any the wiser. I was told by the DWP that the figure was not changing in Oct 12 as well. Not sure which way to go on this,

    #128837
    Jon__Blackwell
    Participant

    I don’t thinks there’s any reason for uncertainty : I’ve seen the email DWP sent to Sharron; I think DWP are simply mistaken (again!)

    Start with HB Regs schedule 4 para 10A(7) and (6)

    “(7) The specified amount is the amount of money from time to time mentioned in any provision referred to in sub-paragraph (6) by virtue of which the work referred to in sub-paragraph (1) is exempt (or, where more than one such provision is relevant and those provisions mention different amounts of money, the highest of those amounts).”

    Subpara 6 specifically refers to reg 45 subparas (2)-(4) of the ESA regs and reg 17 subparas (2)-(4) of the SS(Incap for Work) regs.

    Here’s the relevant bits of ESA Reg 45

    “Exempt work
    45.—

    (2) Work for which the earnings in any week do not exceed £20.00. [ie the lower exempt work disregard]

    (3) Work for which the earnings in any week do not exceed 16 x National Minimum
    Wage, subject to paragraph (9A), and which–
    (a) is part of the claimant’s treatment programme and is done under medical
    supervision while the claimant is an in-patient, or is regularly attending as
    an out-patient, of a hospital or similar institution; or
    (b) is supervised by a person employed by a public or local authority or 2by a
    voluntary organisation or community interest company engaged in
    the provision or procurement of work for persons who have disabilities.

    (4) Work which is done for less than 16 hours a week, for which earnings in any
    week do not exceed 16 x National Minimum Wage, subject to paragraph (9A),and
    which–
    (a) is done during a period of specified work, provided that–
    (i) the claimant has not previously done specified work,
    (ii) since the beginning of the last period of specified work, the claimant has
    ceased to be entitled to a relevant benefit for a continuous period
    exceeding 12 weeks, or
    (iii) not less than 52 weeks have elapsed since the last period of specified
    work; or
    (b) done by a claimant who has or is treated as having limited capability for
    work-related activity.
    (c) for the purposes of this regulation, a period of specified work begins on the
    first day on which any specified work is undertaken and continues for a
    period of 52 weeks, whether or not any further specified work is undertaken
    during that period.

    (9A) Where the amount determined by the calculation in paragraphs (3) and (4)
    would, but for this paragraph, include an amount of–
    (a) less than 50p, that amount shall be rounded up to the nearest 50p; or
    (b) less than £1 but more than 50p, that amount shall be rounded up to the
    nearest £1.”

    ESA Reg 2 defines NMW

    “National Minimum Wage” means the rate of the national minimum wage
    specified in regulation 11 of the National Minimum Wage Regulations 1999 (rate
    of the national minimum wage);

    Reg 11 of the NMW Regs was amended by reg 2 of the The National Minimum Wage (Amendment) Regulations 2012 on 1 October 2012 [£6.08 => £6.19] so that’s when the HPWD went up to £99.50.

    #128842
    cfowkes
    Participant

    OK thanks

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