Incapacity benefit
Encyclopedia
Incapacity Benefit is a United Kingdom
state benefit that is paid to those below the State Pension age who cannot work because of illness or disability and have made National Insurance
contributions. It is administered by Jobcentre Plus
(an executive agency of the Department for Work and Pensions
). As of May 2011 there were 2.6m people of working age in Britain claiming incapacity benefit, approximately 8.5% of the total adult workforce in the United Kingdom, at an annual cost to the tax payer of £12.5 billion.
(ESA) in 2008. Some individuals who were already receiving Incapacity Benefit before the introduction of ESA have continued to do so provided they have remained eligible. They have been subject to a periodic "personal capability assessment" to establish that they remained incapable of work.
When ESA was introduced the intention was to transfer some of the Incapacity Benefit claimants to ESA on a rolling basis between 2010 and 2014 using the ESA "Work Capability Assessment" (WCA). Claimants deemed to have a limited capability for work were to be transferred to the new benefit.
It is also possible for Incapacity Benefit claimants to receive a 'top-up' of Income Support payments. These conditions are complicated and advice should be sought from Jobcentre Plus, Citizens Advice Bureau
or a Welfare Rights Organisation.
According to the Daily Mail
newspaper, approximately 1.3million tests were carried out on applicants for Incapacity Benefit between October 2008 and November 2010. Of these, 88,700 people were found unfit to work, a further 17% were found to be able to do some form of work with sufficient support, and the vast majority were found fit to work. Over one in three dropped out during the course of the application process.
in 2011-12 is £151.6 billion, representing approximately 28% of total UK Government spending.
The 2.6m claimant count represents approximately 8.5% of the total adult workforce in the United Kingdom of around 30.1m individuals. Of those claiming Incapacity Benefit, around a quarter of a million were unable to work due to mental illness.
announced that it intended to re-assess Incapacity Benefit claimants and transfer any who are fully capable of work to Jobseeker's Allowance
(JSA).
In April 2011 a rolling program began under which all existing Incapacity Benefit claimants are to be re-assessed using the WCA. Those who pass the assessment will be moved to ESA. Those who fail will be disqualified from both ESA and IB. They may be able to apply for JSA if they satisfy its conditions. This process is intended to be completed by March 2014.
During pilot projects which were carried out in Aberdeen
and Burnley
, results showed that 30% of existing Incapacity Benefit claimants were in fact fit to work. A further 39% of claimants were considered fit to work, but requiring "extra help". The remaining 31% of claimants were found not able to work, and as a result remained entitled to continuing support.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
state benefit that is paid to those below the State Pension age who cannot work because of illness or disability and have made National Insurance
National Insurance
National Insurance in the United Kingdom was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits...
contributions. It is administered by Jobcentre Plus
Jobcentre Plus
Jobcentre Plus was a government agency for working-age people in Great Britain. The agency was formed when the Employment Service, which operated Jobcentres, merged with the Benefits Agency, which ran social security offices, and was re-named Jobcentre Plus on 1 April 2002...
(an executive agency of the Department for Work and Pensions
Department for Work and Pensions
The Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...
). As of May 2011 there were 2.6m people of working age in Britain claiming incapacity benefit, approximately 8.5% of the total adult workforce in the United Kingdom, at an annual cost to the tax payer of £12.5 billion.
History
Incapacity Benefit was originally introduced to replace Invalidity Benefit and Sickness Benefit in 1995 and was in its turn replaced by Employment and Support AllowanceEmployment and Support Allowance
Employment and Support Allowance is a UK Government State Benefit which replaced new claims for Incapacity Benefit and Income Support on the basis of incapacity for work for most claimants from 27 October 2008. Initially, claimants already receiving Incapacity Benefit continued to receive it as...
(ESA) in 2008. Some individuals who were already receiving Incapacity Benefit before the introduction of ESA have continued to do so provided they have remained eligible. They have been subject to a periodic "personal capability assessment" to establish that they remained incapable of work.
When ESA was introduced the intention was to transfer some of the Incapacity Benefit claimants to ESA on a rolling basis between 2010 and 2014 using the ESA "Work Capability Assessment" (WCA). Claimants deemed to have a limited capability for work were to be transferred to the new benefit.
Eligibility
An individual could have been eligible for Incapacity Benefit if:- They were not entitled to statutory sick pay; and
- They satisfied the national insurance contribution test; and
- They were under pension age when the period of incapacity for work begins; and
- They were incapable of work.
It is also possible for Incapacity Benefit claimants to receive a 'top-up' of Income Support payments. These conditions are complicated and advice should be sought from Jobcentre Plus, Citizens Advice Bureau
Citizens Advice Bureau
A Citizens Advice Bureau is one of a network of independent charities throughout the UK that give free, confidential information and advice to help people with their money, legal, consumer and other problems....
or a Welfare Rights Organisation.
According to the Daily Mail
Daily Mail
The Daily Mail is a British daily middle-market tabloid newspaper owned by the Daily Mail and General Trust. First published in 1896 by Lord Northcliffe, it is the United Kingdom's second biggest-selling daily newspaper after The Sun. Its sister paper The Mail on Sunday was launched in 1982...
newspaper, approximately 1.3million tests were carried out on applicants for Incapacity Benefit between October 2008 and November 2010. Of these, 88,700 people were found unfit to work, a further 17% were found to be able to do some form of work with sufficient support, and the vast majority were found fit to work. Over one in three dropped out during the course of the application process.
Scope
As of May 2011 there were 2.6m people of working age in Britain claiming Incapacity Benefit, at an annual cost to the tax payer of £12.5 billion. The total annual budget of the Department for Work and PensionsDepartment for Work and Pensions
The Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...
in 2011-12 is £151.6 billion, representing approximately 28% of total UK Government spending.
The 2.6m claimant count represents approximately 8.5% of the total adult workforce in the United Kingdom of around 30.1m individuals. Of those claiming Incapacity Benefit, around a quarter of a million were unable to work due to mental illness.
2010 Reforms
In 2010 the United Kingdom's new Coalition governmentCoalition government
A coalition government is a cabinet of a parliamentary government in which several political parties cooperate. The usual reason given for this arrangement is that no party on its own can achieve a majority in the parliament...
announced that it intended to re-assess Incapacity Benefit claimants and transfer any who are fully capable of work to Jobseeker's Allowance
Jobseeker's Allowance
Jobseeker's Allowance is a United Kingdom benefit, colloquially known as the dole . It is a form of unemployment benefit paid by the government to people who are unemployed and seeking work. It is part of the social security benefits system and is intended to cover living expenses while the...
(JSA).
In April 2011 a rolling program began under which all existing Incapacity Benefit claimants are to be re-assessed using the WCA. Those who pass the assessment will be moved to ESA. Those who fail will be disqualified from both ESA and IB. They may be able to apply for JSA if they satisfy its conditions. This process is intended to be completed by March 2014.
During pilot projects which were carried out in Aberdeen
Aberdeen
Aberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of ....
and Burnley
Burnley
Burnley is a market town in the Burnley borough of Lancashire, England, with a population of around 73,500. It lies north of Manchester and east of Preston, at the confluence of the River Calder and River Brun....
, results showed that 30% of existing Incapacity Benefit claimants were in fact fit to work. A further 39% of claimants were considered fit to work, but requiring "extra help". The remaining 31% of claimants were found not able to work, and as a result remained entitled to continuing support.
See also
- Demography of the United Kingdom
- Department for Work and PensionsDepartment for Work and PensionsThe Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...
- Economy of the United KingdomEconomy of the United KingdomThe economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity , and the third-largest in Europe measured by nominal GDP and second-largest measured by PPP...
- Ontario Disability Support PaymentOntario Disability Support PaymentThe Ontario Disability Support Program is means-tested income support paid to "persons with a disability" as defined in the ODSP legislation. It is paid monthly, with the main component consisting of a fixed amount for basic needs, and a variable - though capped - amount for shelter...
- Severe Disablement AllowanceSevere Disablement AllowanceSevere Disablement Allowance was a United Kingdom state benefit intended for those below the state pension age who cannot work because of illness or disability. It was replaced by Incapacity Benefit in April 2001, which itself was replaced by Employment and Support Allowance...
- United Kingdom budgetUnited Kingdom budgetThe United Kingdom budget deals with HM Treasury budgeting the revenues gathered by Her Majesty's Revenue and Customs and expenditures of public sector departments, in compliance with government policy.Adjustment is achieved with the GDP deflator....
External links
- Daily Telegraph Blog Retrieved September 2011