So, if you are on SDP you will know we are caught between two benefit sytems. Trying to work out how your income might change if your circumstances do is a bit of a nightmare.

I have done a load of internet trawling trying to find out how exactly my income might change if I take up a disabled work scheme (full-time, London Living Wage). Long story short, here is info I found from various sources that isn't easily found in one place. I hope it's accurate! Someone with more experience will be able to poke holes I'm sure and help get it 100%, but I hope it helps someone

How WTC is worked out (in the above situation):

Working Tax Credit Guide

WTC is broken down into various elements - what you get depends on your circs. The first element is the Basic Element. You must be entitled to that first to get any other element.

To get the basic element, you must be engaged in “qualifying remunerative work” as defined by the basic element of WTC.

Qualifying Remunerative Work:
• Must be employed and working at the date of claim or have accepted an offer which is expected to start within 7 days of making the claim, and
• 16+ years old and working 16 hours at least and responsible for a child, or
• Qualifies for disability element of WTC, or
• Over 25 years and works at least 30 hours a week
• Expected to continue for at least 4 weeks
• Must be done for payment

Disability Element
• No responsibility for children
• Work at least 16 hours
• Disability must place them at a disadvantage of getting a job (Evidence: there is a list of things that qualify you under this part eg. mental health and receiving regular treatment)
• Receive or previously received a qualifying benefit (e.g. ESA income in past 182 days, HB with a Disability Premium, NI Credits)

Severe Disability Element (Can get this even if they do not qualify for the Disability Element.)
• No requirement the disabled person must be in paid work for a minimum number of hours
• PIP enhanced daily living

30 Hour Element
• Single claimant
• Work at least 30 hours

(These are not the only elements - I'm sure I saw a 16 hour element too)

Basic Element – £3040
30 Hour Element – £825
Disabled Worker Element – £3220
Severe Disability Element – £1390


Threshold earnings - £6,530.
After this you lose 41p for every £1.There is no one salary cut off point.


Calculation Steps:

1. Calculate the maximum WTC you would qualify for according to your circs.


e.g. WTC Max = (Basic Elmt) + (30 Hr Elmt) + (Dis. Elmt) + (Severe Dis. Elmt) = £8,475

2. Calculate actual WTC factoring in your income.

(i) Calculate how much excess income you have over the threshold:


Excess Income = Income – Threshold
= £London Living Wage p.a. minus £6,530
Excess Income = £14,612.50

(ii) Mutliply this by 41 and divide it by 100:

WTC reduction = 14612.50 x 41/100
WTC Reduction = £5,991.125


(iii) Subtracting this amount from the Max WTC, will give you exactly what you will get per year:


Actual WTC entitlement = WTC Max – WTC reduction:
= £8,475 - £5,991.125
= £2,483.87

If paid every 4 weeks, WTC entitlement is £191.06


There is no doubt some arithmetic mistakes in there, but you get the jist