What Happens if You Are Awarded Limited Capability for Work?
If you’re awarded Limited Capability for Work (LCW), it means you’ve been assessed and found temporarily unable to work due to a health condition or disability. However, you’re still considered capable of preparing for future employment.
This decision affects how much Universal Credit or ESA you receive and determines your obligations. You’re not required to look for work, but you must engage in activities that help you become work-ready.
Understanding what this status means helps you navigate your benefits and responsibilities with confidence.
What Does Being Awarded Limited Capability for Work (LCW) Really Mean?
Being awarded LCW means that you are currently not expected to actively look for a job because of a health condition or disability.
However, it doesn’t mean you’re exempt from all work-related responsibilities. You’re still expected to prepare for future employment through tasks that gradually move you toward the job market.
This status typically follows a Work Capability Assessment (WCA), which is used to determine your ability to work.
If you’re placed in the LCW group, it means:
- You don’t need to apply for jobs right now
- You will work with a coach to prepare for work
- You may still work if you feel able to do so
- You can receive extra Universal Credit based on your needs
It’s important to understand that LCW is not a permanent classification and may be reassessed.
What Work-Related Activities Are You Expected to Do with LCW?
Being in the LCW group means that while you’re not required to search for a job, you do have to take part in certain activities that help you prepare for employment. These responsibilities aim to build your confidence, skills, and readiness for the workforce.
Your Jobcentre Plus work coach will help you decide which activities are appropriate based on your condition and abilities.
These may include:
- Writing or updating your CV
- Attending training or educational courses
- Participating in skills assessments
- Meeting regularly with your work coach
- Discussing work opportunities that match your ability
The idea is to help you stay engaged with the employment system without pushing you to apply for jobs immediately.
These activities are agreed upon in your claimant commitment, which outlines what you’re expected to do while receiving Universal Credit under LCW.
Can You Still Work While Receiving LCW Benefits?
Yes, you can still work if you have been awarded LCW. While you are not expected to actively job hunt, you are allowed to take on part-time or flexible work, especially if it suits your current health condition.
The Department for Work and Pensions encourages individuals to work within their limits and rewards limited earnings through the work allowance system.
This can be a useful way to stay connected to the job market without risking your benefit payments.
What Is the Work Allowance and How Does It Work?
The work allowance is the amount of money you can earn before your Universal Credit payments start to reduce. It allows you to work part-time and still receive support without an immediate loss of benefits.
There are two levels of work allowance, depending on whether you receive housing support:
- If you do receive housing support, the allowance is £404 per month
- If you don’t receive housing support, the allowance is £673 per month
Any income above these thresholds is deducted from your Universal Credit at a rate of 55%. This system ensures you’re better off working, while still being supported through LCW.
Will Working Affect Your Universal Credit?
Yes, working can affect the amount of Universal Credit you receive, but only after you surpass your work allowance. Up to the allowance, your benefits remain unchanged.
Key points to remember:
- You keep all of your earnings up to the work allowance
- Earnings above the threshold reduce your Universal Credit by 55p per £1
- You must report your income accurately to avoid overpayments or penalties
Working while receiving LCW can be beneficial, as it may lead to long-term employment, and you’ll retain most of your benefit until your earnings increase significantly.
How Does LCW Impact Your Universal Credit or ESA Payments?
LCW directly affects how much financial support you receive and the kind of activities you’re required to take part in. Universal Credit and ESA payments vary depending on your work capability status.
Universal Credit Adjustments
If you’re awarded LCW, you may not receive an additional amount unless you were previously receiving the LCW element before April 2017. However, you’re exempt from job search requirements and still eligible for the work allowance.
Employment and Support Allowance (ESA)
For ESA, being awarded LCW usually places you in the Work-Related Activity Group (WRAG). Here, you may receive an extra amount each week and be required to attend work-focused interviews and undertake certain activities.
What’s the Difference Between LCW and LCWRA?
LCW and LCWRA represent two different outcomes from a Work Capability Assessment, and they carry different financial and activity-based expectations.
| Feature | LCW | LCWRA |
| Work Search Required | No | No |
| Work Preparation Required | Yes | No |
| Additional UC Payment | Only if assessed before April 2017 | Yes |
| Allowed to Work | Yes | Yes |
| Mandatory Activities | Yes (agreed with work coach) | No |
| Reassessment | Yes | Less frequent, but possible |
While both groups are exempt from actively job hunting, LCWRA recipients have more severe health conditions and receive a higher payment with fewer responsibilities.
What Happens After You Receive the Decision Letter from the DWP?
After your Work Capability Assessment, you’ll receive a decision letter from the DWP outlining the result. This letter is crucial for understanding your benefit status and responsibilities.
It will tell you:
- Whether you’re fit for work, have LCW, or LCWRA
- What group you’ve been placed in
- If you’re entitled to additional payments
- What you need to do next
Keep this letter safe and refer to it when speaking to your work coach or updating your claimant commitment.
How Can You Tell Which Group You’ve Been Placed In?
Your group assignment will be clearly stated in the decision letter. It will mention if you’ve been awarded Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LCWRA).
Make sure to read the letter carefully and take note of any dates or actions required. If the information is unclear, you should contact your Jobcentre Plus immediately.
What Should You Discuss with Your Work Coach?
Your work coach will be your main point of contact while receiving benefits under LCW. It’s essential to have open discussions to ensure you’re meeting your commitments and receiving appropriate support.
Topics to discuss include:
- Your claimant commitment and any adjustments needed
- The type of activities you’re comfortable with
- Any changes in your health
- Work-related training or courses
- Support services or referrals
These conversations ensure you’re progressing towards employment without putting your health at risk.
What Should You Do If Your Health Condition Changes?
If your physical or mental health improves or deteriorates, it’s your responsibility to inform the DWP. This ensures your benefit category reflects your current condition and needs.
Here’s what you should do:
- Notify the DWP via your Universal Credit account or by phone
- Provide updated medical reports or evidence
- Attend any reassessment appointments requested
Failing to report changes can lead to incorrect payments or penalties. Being proactive ensures your benefits continue fairly and accurately.
Key reminders:
- Always update your claimant commitment
- Keep records of doctor visits or hospital treatments
- Inform your work coach if adjustments are needed
Staying transparent about your health changes helps the DWP support you better and ensures you receive the right benefits without interruption.
Will You Be Reassessed for LCW in the Future?
Yes, reassessments are a normal part of the process. The DWP uses them to evaluate whether your condition has changed and if your LCW status is still appropriate. You’ll typically be notified in writing if a reassessment is required. However, if you start working or your condition clearly improves, you may be reassessed sooner.
If you continue to meet the criteria for LCW, your status will remain the same. If not, your responsibilities and payments may be adjusted. Always prepare for a reassessment by keeping your medical documents up to date and maintaining communication with your work coach.
Conclusion
Being awarded Limited Capability for Work provides support and time to recover while gradually preparing for employment.
While you’re not expected to seek work immediately, you’ll still engage in activities to improve your job readiness. Understanding your rights, responsibilities, and benefits helps you make informed decisions.
Stay in touch with your work coach, keep the DWP updated about health changes, and take advantage of the support available to you.
Frequently Asked Questions
How long does the DWP take to decide after the Work Capability Assessment?
It usually takes between four to eight weeks to receive a decision after your assessment.
Can you appeal if you disagree with the LCW decision?
Yes, you can request a Mandatory Reconsideration, followed by a tribunal if necessary.
Will LCW status affect your housing element in Universal Credit?
LCW status doesn’t directly change your housing element, but additional income support may help with costs.
Is medical evidence required for the Work Capability Assessment?
Yes, providing detailed medical evidence supports your case and can influence the assessment result.
What happens if you fail to attend a scheduled Work Capability Assessment?
Missing the assessment without a valid reason may result in benefit suspension or denial.
Can you do voluntary work while on LCW?
Yes, voluntary work is permitted and can help you build skills for future employment.
Does LCW affect your eligibility for other benefits like PIP or Carer’s Allowance?
No, these benefits are assessed independently and are not affected by LCW status.
