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Extended Payments
Although starting work can be a very positive change in your circumstances, it can also lead to some short-term practical problems, particularly if you have to wait for period of time before you receive any wages.
If you were receiving Income Support, Jobseeker’s Allowance, Incapacity Benefit or Severe Disablement Allowance before you started work you may be able to claim up to 4 weeks Housing Benefit and Council Tax Benefit at the same rate you were claiming before. This is known as an Extended Payment.
I’m starting work after being in receipt of Income Based Jobseeker’s Allowance (JSA(IB)) or Income Support (IS), can I get an Extended Payment?
There are special rules governing who can claim an Extended Payment, however, if you or your partner fulfil all the following criteria, you may be able to apply:
- You or your partner have started work, or increased your hours of work to at least 16 hours per week (24 hours in the case of your partner), or increased your earnings sufficiently to take you off IS/JSA(IB).
- For at least 26 weeks immediately before the date your entitlement to IS or JSA(IB) ended, you must have been continuously registering as available and actively seeking work, or registering as available, actively seeking work and getting JSA(IB) because of low earnings. Or you were you were receiving IS or JSA(IB) as a lone parent, or a carer, or on a Government Training course. Periods of Contribution based Jobseeker’s Allowance will count towards the 26 weeks, however, you must be in receipt of either IS or JSA(IB) at the point you or your partner start work or increase your hours/earnings.
- Your new job or increase in hours/earnings must be expected to last for at least five weeks.
- You must be liable for rent and/or Council Tax, immediately before IS or JSA(IB) ended, and for the whole of the Extended Payment period.
I’m starting work after being in receipt of Incapacity (IB) or Severe Disablement Allowance (SDA), can I get an Extended Payment?
As above there are special rules governing who can claim an Extended Payment, however, if you or your partner fulfil all the following criteria, you may be able to apply:
- You or your partner are receiving IB or SDA which ceases due to you starting work as an employed or self employed earner, increasing your hours of work, or increasing your earnings from your current employment.
- You have been continuously in receipt of IB or SDA for at least 26 weeks immediately before IB/SDA ceases (note: IS must not have been in payment during this period).
- Your new employment, or increase in hours or earnings is expected to last for at least 5 weeks.
- You must be liable for rent and/or Council Tax immediately before your claim for IB or SDA ceases.
How do I claim an Extended Payment?
You must inform us within 4 weeks of you or your partner starting working or increasing the hours that you work. We will then check to make sure that you meet the qualifying conditions.
We will amend your benefit claim to continue to pay for up to 4 weeks from the Monday your JSA, IS, IB or SDA stopped. You will be paid at the same rate you already receive. We will write to you confirming this. Your claim will be cancelled after the Extended Payment period, however, if your income is low you may still be eligible to receive some Housing Benefit and/or Council Tax Benefit. For more information go to How Do You Work Out My Benefits Entitlement?
You must also remember to tell your Department for Work and Pensions office or JobCentre Plus that you have started work.
Go to Points of Contact for Benefits Help, for information about what it do if you have any further enquiries.
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