Your Income Support or Job Seekers Allowance may stop if you start a new job or take on extra hours in your current employment. However, you may still be entitled to maximum Housing/Council Tax Reduction Scheme (91.5% of your council tax liability) if you qualify for an Extended Payment.
Housing Benefit and Council Tax Reduction Scheme extended payments were introduced on 1st April 1996 (for Housing Benefit) and 1st April 2013 (Council Tax Reduction Scheme) to remove the anxiety felt by some people of how they will meet their housing costs during the period between the last payment of Income Support/Job Seekers Allowance and receipt of their first/increased wage.
Who can claim?
To be eligible for an extended payment you must have been in receipt of Income Support, Jobseekers Allowance (income based), Incapacity Benefit or Severe Disablement Allowance for a period of at least 26 weeks prior to you or your partner starting work or increasing your hours/wages.
- Registering as unemployed or registering as unemployed and getting Income Support or Job Seekers Allowance Income Based (JSA (IB)) because of low earnings. Periods of receipt of Job Seekers Allowance Contribution Based (JSA (C)) without Income Support will count towards the 26 weeks, but you must be in receipt of Income Support or JSA (IB) at the point that either you or your partner start work or increase your hours/wages.
- you must be aged under 60 years old on the day after entitlement to Income Support or JSA(IB) stops. This condition only applies to the person who was claiming Income support/JSA(IB);
- your new job or increase in hours/wages must be expected to last for at least 5 weeks;
- you must have a continuing rent/council tax liability and must have a liability immediately prior to Income Support/JSA(IB) ceasing.
What will I be entitled to if I qualify?
If you qualify, it means up to an extra 4 weeks of Housing Benefit and/or Council Tax Reduction Scheme (provided a liability exists) payable at the same rate whilst in receipt of Income Support/Job Seekers Allowance. It does not matter how much you earn.
If you move home during the extended payment period you may be paid a different rate.
How do I claim an extended payment?
You should notify us that you have started work, increased hours/pay by phone or letter.
Can I still apply for Housing/Council Tax Reduction Scheme?
You may still qualify for help with your rent/Council Tax after the extended payment period has finished. In order to avoid loss of benefit you must submit a completed claim form to us as soon as you know your entitlement to Income Support or Job Seekers Allowance is going to cease.
Apply for Housing Benefit/Council Tax Reduction Scheme
Alternatively, contact the Worcestershire Hub on 01562 732928.
This information is for guidance only. It does not cover all the rules for all the benefits for every situation, nor does it provide a full interpretation of the rules. It should not be treated as a complete and authoritative statement of the law.