Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether reimbursed fuel expenses from visiting clients in their home during the course of employment is counted as income in Universal Credit claims.

To keep Universal Credit as simple and clear as possible, the definition of earnings aligns very closely to the rules in tax legislation, namely the Income Tax (Earnings and Pensions) Act 2003 (ITEPA). This is so that rules across tax and benefits are aligned where possible. Under ITEPA payments classed as ‘allowable expenses’ would not be counted as employed earnings and would be excluded from the calculation of the Universal Credit award.

Reimbursed fuel expenses which would come under the general rule of allowable expenses are those where the employee is obliged to incur and pay these as a holder of that employment and the amount is incurred wholly, exclusively and necessarily in the performance of the duties of their employment. Reimbursed expenses which would not come under the general rule of allowable expenses are those that are in the employee’s own interest or benefit, such as the cost of travel to a single place of work.