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Benefits and help when going back to work

When you return to work after being on benefit, some of your benefits will carry on for a short while. Find out more, including the benefits and support you may be able to get once you're working.

Help with housing costs

If you were getting help with your housing costs while you were out of work, you may carry on getting this. This is if you have claimed income-based Jobseeker's Allowance, income-related Employment and Support Allowance or Income Support for at least 26 weeks continuously before starting work. You may then continue to get the following benefits for up to four weeks:

  • Extended Payment of Housing Benefit
  • Extended Payment of Council Tax Benefit
  • Mortgage Interest Run On

If you're on a low wage and your housing costs are below a certain level, you may continue to get Housing Benefit and Council Tax Benefit after this time.

If you are a homeowner and have to reclaim benefit you may not have to wait until you get help again with your mortgage costs. Contact Jobcentre Plus to find out more.

Tax credits

A tax credit is a payment that you receive regularly. Despite the name, it isn't a credit against your tax bill. Nine out of ten families with children are eligible for Child Tax Credit.

If you're working more than 16 hours a week and you're on a low income, you may be able to get Working Tax Credit too.

Tax credits may also be able to help with the costs of your childcare if you:

  • work for at least 16 hours per week
  • worked more than 16 hours per week before going on adoption, maternity, paternity or sick leave

In Work Credit

In Work Credit is a fixed tax-free payment of £40 per week (£60 per week in London) for parents bringing up children alone.

You may get In Work Credit if you are:

  • bringing up children on your own
  • starting work of at least 16 hours a week
  • expect that work to last five weeks or more

You must also have been getting Income Support or Jobseeker's Allowance or a combination of these benefits for at least 52 weeks or more without a break.

It is payable for up to 52 weeks on top of your earnings. You need to claim it before you start work.

Job Grant

A Job Grant is a tax-free lump sum. You may be eligible for a Job Grant if you have been claiming one of the following benefits:

  • Employment and Support Allowance
  • Incapacity Benefit
  • Income Support
  • Jobseeker's Allowance
  • Severe Disablement Allowance

You will need to have been claiming benefit continuously for more than six months and starting work of more than 16 hours per week.

You'll automatically get Job Grant if you're eligible. You just need to make sure you tell your Jobcentre Plus Office that you're starting work. You'll be paid in the same way as you were paid your benefit.

Return to Work Credit

Return to Work Credit is a fixed tax-free payment of £40 per week for people that have, or have had, a health condition or disability. You need to have been in receipt of a relevant benefit before starting work of at least 16 hours per week.

Your expected salary or income if you are self employed, before deductions must be £15,000 or less a year. You need to claim within five weeks of starting work.

To find out more about Return to Work Credit follow the link below to Pathways to Work.

Training Premium

Jobcentre Plus can help you by providing free full-time education and training for up to a year (up to £750 towards training a young person aged between 18 and 24).

You must have been in receipt of Jobseeker's Allowance (JSA) for at least six months and located in an area covered by this scheme. A training allowance based on your JSA payments plus a top-up payment may be payable during the training.

For more information contact Jobcentre Plus.

Travel-to-interview scheme

In certain cases Jobcentre Plus may be able to help you pay to get to your job interview. This is called the travel-to-interview scheme.

Claiming benefits when you go back to work

If you or your partner have been getting Jobseeker's Allowance or Income Support and you get a job, you now only need to report this to Jobcentre Plus. This is the new 'In and Out of Work' service to speed up changes to customers' reported circumstances.

Jobcentre Plus will then let your local council and tax credit office know. Your local council will work out what Housing Benefit and Council Tax Benefit you may get. The tax credit office will work out what Child Tax Credit and Working Tax Credit you may get.

If your circumstances change when you are working, such as working overtime, you must let your local council and tax credit office know, as your benefits could also change.

This service is available in most parts of Great Britain, and will be available in all areas by early 2010.

Use the online Benefits Adviser to find out how a change in your circumstances, such as starting work, may affect your benefits.

Shortened claim process for Income Support or Jobseeker's Allowance

If your Income Support or Jobseeker's Allowance claim ended less than 26 weeks ago and there has been no change to your circumstances your claim to benefits may be simpler and shorter.

To make a claim for Jobseekers Allowance or Income Support call 0800 055 66 88.

There is a Welsh language line on 0800 012 1888, and a textphone 0800 023 4888 if you have a speech or hearing impairment.

Lines are open from 8.00 am to 6.00 pm Monday to Friday.

The following are not considered as a change of circumstances:

  • you or someone you are claiming for is now pregnant
  • tax credits have been claimed or awarded

Additional links

Benefits advice online

Online benefits adviser

Get benefits advice by using this online tool to answer questions about your situation

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