asked Her Majesty's Government:
Whether any earnings from permitted work undertaken by claimants of (a) income-based employment and support allowance and (b) contribution-based employment and support allowance will affect any other benefits they may receive such as housing benefit or council tax benefit; and if so, how.
Both contributory and income-related employment and support allowance claimants will be able to earn up to, and keep, £88.50 per week without affecting their entitlement.
Claimants on income-related employment and support allowance will be entitled to full eligible housing benefit and council tax benefit in the same way as those currently on income support. This includes those who are undertaking permitted work within the permitted hours and earnings limits and who, therefore, retain entitlement to benefit.
For main phase contributory employment and support allowance-only claimants, the earnings disregard for housing benefit and council tax benefit will remain at £20. Housing benefit or council tax benefit entitlement will, therefore, be reduced by any earnings above this. When combined with the housing benefit/council tax benefit taper, the £20 earnings disregard means that, overall, a person with earnings is better off than without, as they are allowed to keep around £30, not £20, of their housing benefit and council tax benefit if they earn £88.50.