Time Banking and Benefits

Government ministers have ruled that time credits should be disregarded by the Benefits Agency. The decision was announced by the Secretary of State for Social Security on June 15, 2000:

"Our legal advice is that time credits derived from participation in a time bank scheme, such as Fair Shares, does not constitute earnings for income-related benefits. Entitlement to these benefits is therefore unaffected."

This is the case where time bank participants do not receive goods in exchange for time credits. If a time bank participant receives goods in exchange for time credits their benefits entitlement may be affected. Job centres contact their neighbourhood time banks to find out what each time bank practices and whether goods exchanges take place. They then implement local recommendations on how it will affect participants who claim state benefits. Each time bank decides whether goods are exchanged within their time bank or not.

For incapacity benefit the rules are slightly different. A time bank participant who receives incapacity benefit may need to obtain a note from their doctor stating that the time bank is good for their health, but that it does not make them ready for work.

This is because the Benefits Agency only gives incapacity benefit to people who are not ready and able to work.

An example of a possible note that a time bank participant could take to their doctor is given below and can be amended as needed.

Doctor PPPP 16 High Street Bigtown XX3 3XX   To whom it may concern, Mr XXXX is a patient of this surgery. He is currently participating in a community time bank project as a means to improve his health and to meet new people. This activity is for a few hours each week. The time bank is a therapeutic means for Mr XXXX to make friends and take part in community activities. He is still not ready or able to work at the present time. If you have any queries as to Mr XXXXs availability for work please do not hesitate to contact me. Yours truly,     Dr. PPPP