Starting work is an exciting opportunity for anyone, but when you have rent or council tax to pay, it can also be a worry about how to manage the bills until your first pay day.

If you were receiving Income Support, Job Seekers Allowance, IIncapacity Benefit or Severe Disablement Allowance before you started work, you may be entitled to up to four weeks Housing Benefit and Council Tax Benefit at the same rate you were receiving 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 is entitled to an Extended Payment, however, if you or your partner fulfil all the following criteria, you may be entitled to the payment.

If

• 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 or JSA(IB);

and 

• For at least 26 weeks immediately before the date your entitlement to IS or JSA(IB) ended, you were 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 time where you were entitled to Contribution based Jobseeker’s Allowance will count towards the 26 weeks, however, you must be in receipt of either Income Support or Job Seekers Allowance (Income Based) at the point you or your partner start work or increase your hours/earnings.)

and

• Your new job or increase in hours/earnings must be expected to last for at least five weeks.

and

• 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 (even if you move home during the EP period).

I’m starting work after being in receipt of Incapacity Benefit (IB) or Severe Disablement Allowance (SDA), can I get an Extended Payment?

The rules are broadly the same as outlined above; that is:

If

• You or your partner are receiving IB or SDA which ceases due to
• you starting work as an employed or self employed earner, or
• increasing your hours of work, or
• increasing your earnings from your current employment;

and

• You have been continuously in receipt of IB or SDA for at least 26 weeks immediately before IB or SDA ceases (note: IS must not have been in payment during this period);

and

• Your new employment, or increase in hours or earnings is expected to last for at least 5 weeks;

and

• 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 the council within four weeks of you or your partner starting work, increasing the hours that you work, or getting a higher rate of pay.  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 housing and/or council tax benefit claim will be cancelled after the Extended Payment period.  If you want to claim further help with your rent and/or council tax, based on your new circumstances, then you will need to fill in a new benefit claim form when you start work; if you don’t do this straight away, then you may lose benefit.

You must also remember to tell the Department of Work and Pensions or Job Centre Plus that you have started work.