This is from the Green Paper -
121. There are already rules in place that are intended to encourage working-age people who are in receipt of health and disability benefits to try work. Both PIP and UC health are in and out of work benefits. In UC there are work allowances specifically for those who have a disability or a health condition (the limited capability for work (LCW) and LCWRA groups). In addition, there is also a single taper rate that withdraws financial support at a steady rate as earnings increase, smoothing the transition into work and ensuring you are always better off in work. Both the work allowance and single taper rate will remain unchanged to continue to incentivise trying work.
122. Under permitted work rules, anyone claiming ESA can work for fewer than 16 hours per week and earn up to £183.50 per week (increasing to £195.50 from April 2025), without it affecting their benefit entitlement. People claiming ESA that work over and above these thresholds are no longer eligible for the benefit.
123. At present, people claiming UC and NS ESA can return to their previous benefits should they stop working. If a person claiming UC starts work and has earnings which exceed the threshold for entitlement to UC following application of the Work Allowance and the UC taper, their UC entitlement and award can resume if their earnings fall below the threshold again within 6 months. For NS ESA, if a person leaves the benefit to try work, ESA linking rules allow people to reclaim within 12 weeks without needing to undergo a WCA (providing there are no other changes of circumstances).
I knew there had always been the possibility of some permitted work, but if you can currently work substantially on UC and ESA the only change should be to a LESS punitive system so that there really is no danger of losing benefits in working.