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New Style ESA and employee pension deductions

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2 hours 59 minutes ago #313021 by Springboard

New Style ESA and employee pension deductions was created by Springboard

Hi I have a question regarding new style esa and permitted working.

The guidelines state: Permitted Work Limits (2025/26): You must work less than 16 hours a week and earn no more than £195.50 per week (after tax and National Insurance).

Do they take into account your employee pension deductions as these get taken off before tax and NI or do they add the pension deductions back on after tax and NIC, I just need to ensure before I apply that I do indeed earn let than £195.50 per week after tax and NIC.
many thanks

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David
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1 hour 59 minutes ago #313024 by David

Replied by David on topic New Style ESA and employee pension deductions

Hi Springboard

Thanks for your question. In general the DWP when calculating wages to be taken into account for Benefit purposes disregard only half the pension as you will see from the link.
I cannot find any exemption for Permitted Work.
assets.publishing.service.gov.uk/media/6...477f/dmg-Chap-49.pdf

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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