Permitted work when studying

I’ve posted before about undertaking a postgraduate course and here effect on my income-related ESA with Support Group component and SDP, because I will be in receipt of a postgraduate loan. I am seeking advice on the impact of this, but I would like some advice in permitted work.

Ignoring the impact on any WCA, if I were to undertake some permitted work whilst studying, would the earnings from this count in addition to the money from my postgraduate loan, and thus reduce my ESA further, or is the permitted work separate and I would be allowed to keep the earnings from it without my ESA being reduced?

Many thanks for your help,

Ka

Thank you for your advice.

I approached the university’s advice service for guidance on the impact my postgraduate loan would have on my ESA. They came to the conclusion that it would not result in a decrease in my ESA due to the following:

“ Entitlement: assuming you are classed as still eligible for ESA and as your ESA is ir-income related, any new income can reduce your ESA entitlement, currently £194.30 pw.

The Masters Loan is a maximum of £11,222 and for a 2 year course that is paid £5611 per year (assuming both years are 3-term/2-semester years)

The DWP Regulations state that “Where a student is treated as possessing a postgraduate master’s degree loan under paragraph (4) in respect of an academic year, the amount of that loan to be taken into account as income is to be, subject to paragraph (6), a sum equal to 30 per cent. of the maximum postgraduate master’s degree loan the student is able to acquire in respect of that academic year by taking reasonable steps to do so “

So in each academic year, with a maximum loan per year of £5611, 30% of that is to be treated as income; 30% of 5611 = £1683.30

So that 1683.30 is then divided down into a weekly amount based on a 42 or 43 week year based on the term dates up to and including the last full week in august. Roughly speaking that gives you a new weekly income from Masters Loan of approx.: £40 pw.

As this £40 pw would be lower than your Applicable Amount –for ESA, your ESA would not reduce solely as a result of enrolling onto the course and taking the Masters Loan as above.”

Does this ring true with you. My situation is so niche that no online calculators are accurate and the university cannot give definitive advice; the above is based on one of their advisors who happens to work for Capita in a previous life and happened to be available during my appointment,

If you could give me your thoughts on the above advice and where I could go to confirm it that would be helpful.

Note I am unlikely to take on the hypothetical paid employment in the original post as I think I would be taking too much on.

Thanks,

ka