[2024] UKUT 131 (AAC)
Upper Tribunal Administrative Appeals Chamber

[2024] UKUT 131 (AAC)

Fecha: 18-Abr-2024

The First-tier Tribunal’s decision

The First-tier Tribunal’s decision

11.

The FTT allowed both appeals following a hearing on 3 May 2022. The essence of its decision was captured in its summary Decision Notice for the entitlement appeal, the material parts of which read as follows:

3.

… The Tribunal has however decided that during this period [the claimant] was not "working" in any accepted sense of the word. He had been claiming ESA since 2013 upon the basis that he had addiction and mental health issues during this period. As such he remains entitled to IRESA during this period and therefore there is no overpayment.

4.

Having considered all the available evidence and applied the law the Tribunal finds that [the claimant] during this period engaged in criminal activity. He fully accepts he was handling stolen goods during this time and was sentenced to over 4 years in prison in October 2016 for which he served just two years. Since his release he has been receiving UC upon the basis of his continuing incapacity.

5.

The issue the Tribunal had to consider however was whether criminal activity might still be considered as work for benefit purposes. [The claimant] was illegally buying and then selling stolen bikes. He knew they were stolen and accepted as much in his oral evidence today. He explained however that whilst he sometimes made over a £1,000 weekly, all his money was then spent on funding his drug and alcohol addiction. During this period he was in supported accommodation with a support worker and was a vulnerable person. The Tribunal decided this was not "work" and whilst all "income" is considered for means tested benefit purposes, the Tribunal concluded this was not "income" in the normal sense of the word, rather it was criminal activity for which he has served time in prison.

12.

In summary, therefore, the FTT decided that the claimant’s admitted activities in buying and selling stolen bikes were not ‘work’ for the purposes of income-related ESA and as such the receipts did not count as ‘income’. That being so, the FTT held that the claimant was not above the ‘permitted work’ limit but rather had no ‘income’, such that his appeals against the Secretary of State’s entitlement decision and the consequential overpayment decision were both allowed.