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Benefits

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Benefits and help when going back to work

If you return to work after being on benefit, some of your benefits will stop automatically straight away. Some will carry on for a short while after you start work to tide you over. You may be able to get other benefits 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 for up to four weeks after you start your new job. You’ll need to have claimed income-based Jobseeker's Allowance or Income Support for at least 26 weeks continuously just before you started work.

Benefits you may be able to claim include:

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


To claim, tell your Jobcentre or social security office about your change in circumstances.

If you’re on a low income in your new job, you may still qualify for help with your housing costs even though you’re back at work.

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

Job Grant

Job Grant is a tax free lump sum you may get when you start full-time work (at least 16 hours a week). You’ll get it if you (and your partner if you have one) are aged 25 or over and you’ve been getting one or more of these benefits for at least 26 weeks before you started work:

  • Income Support
  • Jobseeker's Allowance (both types)
  • Incapacity Benefit
  • Severe Disablement Allowance

The amount of Job Grant you’ll get depends on your circumstances:

  • £100 if you’re a single person or part of a couple with no children
  • £250 if you’re a lone parent or part of a couple with children

Job Grant is paid to you automatically when you start your new job.

Job Grant factsheet

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.

Find out more about tax credits
Child Tax Credit factsheet
Working Tax Credit factsheet

More useful links

'Employed or looking for work' benefits factsheets
Check your rights as an employee (employment section)
Find your nearest Jobcentre Plus (opens new window)


This article was created: 15 January 2007.
This article was last edited: 19 March 2007.

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