Benefits in work

5 mins read

This advice applies across the UK.

Being in or moving into work will make a difference to the benefits you might be able to claim. On this page, we explain what benefits you might still get alongside your earnings.

Benefits not affected by work

Some benefits that you get will not be affected by being in work.

For example, any Disability Living Allowance (DLA) or Personal Independence Payment (PIP) paid to your child can continue regardless of whether you start work. The same applies to Adult Disability Payment and Child Disability Payment in Scotland.

Child Benefit also continues to be paid when you are working. However, if you or your partner earn more than £60,000 per year, your Child Benefit is reduced. This is done by way of a claw back through the income tax system. If you earn more than £80,000, all of your Child Benefit will be recovered through income tax.

Any Council Tax discount or Council Tax disability reduction continues while you are working.

Benefits that may be affected by being in work

Many benefits are means-tested. This means that any earnings you or your partner have are likely to affect these benefits.

Means-tested benefits include Universal Credit, Housing Benefit and Council Tax reductions. Depending on the amount of your earnings and your other circumstances, these benefits may not necessarily stop. Often they can continue, although the payments you receive may be lower. If your earnings are low, some or all of these benefits may be unaffected.

Other benefits are also affected by earnings. It is only possible to continue receiving Carer’s Allowance or Carer Support Payment if the carer’s earnings are no more than £204 per week after certain deductions. Any earnings that the carer’s partner has are ignored.

You can continue to be eligible for the carer’s element of Universal Credit if you return to work. However, you must be caring for 35 hours per week for someone in receipt of a relevant disability benefit. This means either the middle or higher care rate of DLA or either rate of the daily living component of PIP. There is no earnings limit for the carer’s element. You do not have to be in receipt of Carer’s Allowance to qualify.

If your earnings are above certain levels, you may not automatically qualify for free school meals or help with NHS costs.

The Right to Try work

The government introduced new legislation from 30 April 2026 called Right to Try. This is intended to allow claimants of disability benefits to try work without fear of losing their benefit entitlement.

Right to Try applies to claimants of the following benefits:

PIP.
Employment and Support Allowance (ESA).
Universal Credit with Limited Capability for Work (LCW).
Universal Credit with Limited Capability for Work-Related Activity (LWCRA).

If you claim one of these benefits, you won’t have your entitlement reassessed solely because you start work. The DWP cannot use starting work in-and-of-itself as a reason to reassess your entitlement. However, you can be reassessed if your health has improved, allowing you to work.

Rules for PIP

If you claim PIP, there is no obligation to notify the DWP that you have started work. (All PIP payments are disregarded as income for means-tested benefits). However, you must do so if your health has improved.

You should consider whether starting work is an indication of an improvement in your health. Notify the DWP if this is the case. The DWP may carry out a reassessment of your entitlement if they consider your work to be incompatible with your disability or health condition.

Rules for Universal Credit

For Universal Credit, there is an obligation to notify the DWP on starting work. Notify Universal Credit through the “Report a Change” section of your online account.

It is helpful to add further information to the online journal about the work you are doing. Make it clear if your health hasn’t improved, and explain how your work fits with your condition. For example, you should explain if you get additional support to work or if your employer has made any reasonable adjustments for you.

You should continue to be eligible for the LCWRA element of Universal Credit if you return to work and have a disability or health condition. If you are returning to work because your health has improved, then Universal Credit may carry out a new work capability assessment to confirm whether you can still be considered to have LCWRA.

Universal Credit claimants who are working may have income that is too high for them to receive a payment. In this situation, if your return to work is not successful, you can return to your previous rate of Universal Credit, including the LCW (this element was abolished for new claimants from 3 April 2017) or LCWRA element. However, you must re-open your award of Universal Credit within six months.

Rules for ESA

There is also an obligation to notify the DWP that you have started work for ESA. Phone the ESA helpline on 0800 169 0310.

For ESA claimants, it is already possible to do some permitted work and continue to receive the benefit.

If your claim for ESA ends because you have returned to work but then need to reclaim, you will be paid at the same rate as before if you do so within 12 weeks of your old award ending.

Related information

Grants, loans, savings & local authority schemes

Information about charity grants you might be able to apply for, local welfare schemes and budgeting loans/advances.

Two children in the park looking at some signage on a sunny day. One child is in a wheelchair, the other is standing pointing at the sign.

Transport & leisure discounts

Information about help with parking, getting a car, paying road tax and rail and bus travel, as well as advice on saving…

Local support & legal advice

Information about the help available in your area, from local advice organisations to parent support groups.

How can we help?