Extended payments of Housing Benefit and Council Tax Benefit when you start work

What are extended payments?

Extended payments are payments of Housing Benefit and Council Tax Benefit which can be paid for an extra four weeks after you come off Income Support or Income Based Jobseeker’s Allowance and start work.

If you qualify for these extended payments, we will pay Housing Benefit and Council Tax Benefit for an extra four weeks at the same rate we paid you before you started work. It doesn’t matter how much you earn in your new job.

How do I claim Extended Payments?

You do not have to make a written claim to get Extended Payments. Instead you have to tell either:

• The DWP or

• Employment Services or

• Derby Benefits

that you or your partner have started, or about to start, work.

If you are coming off Incapacity Benefit or Severe Disablement Allowance, please tell Derby Benefits directly.

You do not have to tell them in writing. You can tell them by telephone or visiting the office if you want. However, you must tell them within 4 weeks from when you or your partner start work. As long as you do this, you will be treated as having made a claim for Extended Payments.

Who can qualify for Extended Payments?

To qualify for Extended Payments you or your partner must have:

• started work or increased your hours, and as a result your Income Support or Income Based Jobseeker’s Allowance has stopped and
• the new job is expected to last for at least 5 weeks and either
• you have been available for and actively seeking work for at least 26 weeks immediately before your new job starts or
• you are a lone parent, carer or on a government training scheme, in which case you do not have to have been available for work in the 26 weeks before your new job starts.

How much is paid?

The weekly amount of the Extended Payment is exactly the same as the benefit in payment when you started work. So it does not matter how much money you are earning in your new job.

Example

• You start work on Wednesday 7 November
• Before you started work you were getting £55.00 a week Housing Benefit and £4.78 a week Council Tax Benefit
• Your Housing Benefit and Council Tax Benefit stops at the end of that week - Sunday 11 November
• You report the fact that you have started work before Wednesday 5 December, and you satisfy the qualifying conditions
• You will be entitled to an extra four weeks Housing Benefit and Council Tax Benefit
• This will total 4 x £55.00 = £220.00 Housing Benefit and 4 x £4.78 = £19.12 Council Tax Benefit
• This will be paid whatever you are earning in your new job.

You can also download our leaflet :

Extended payments of Housing benefit and council tax benefit when you start work  - 45Kb