Updated 15 August 2012
Employment and Support Allowance
Employment and Support Allowance (ESA) was introduced on 27 October 2008. It replaced a range of incapacity benefits with immediate effect for customers making a new claim for financial support on the grounds of illness or incapacity.
The key tool to assess an individual’s capability for work is the Work Capability Assessment (WCA). Entitlement to ESA is based on an individual’s functional ability rather than the condition itself. Anyone claiming ESA will undergo the (WCA). A DWP decision-maker will decide on entitlement to benefits, based on advice from a healthcare professional from Atos Healthcare.
From October 2010, those customers who are currently still receiving the older style incapacity benefits will be reassessed and moved to ESA or other benefits more appropriate to their circumstances. This exercise will run until 2014.
For more information about Incapacity Benefit and Income Support Reassessment:
- Incapacity Benefit (Directgov)
- Benefits if you are ill or disabled – changes you need to know about (Directgov)
Work Capability Assessment
The Work Capability Assessment (WCA) was introduced in October 2008 to assess entitlement to Employment and Support Allowance, as part of The Welfare Reform Act 2007.
The assessment:
- was developed in consultation with medical and other experts alongside specialist disability groups
- looks at an individual’s physical and mental capabilities and focuses on the functional effects of an individual’s condition rather than the condition itself
- looks at an individual’s ability to work, taking into account the modern workplace and developments in healthcare
- is based on the body of evidence which demonstrates that work can be beneficial for individuals with health conditions and disabilities and may even promote recovery.
Information on the development of the WCA:
- Transformation of the Personal Capability Assessment report (290KB)
September 2006 - Transformation of the Personal Capability Assessment – interim report (740KB) was published in February 2007
- Transformation of the Personal Capability Assessment – final report 740KB) in November 2007
Since October 2010, the WCA applies to existing incapacity benefits customers.
Department-led review of the WCA
A department-led review of the WCA, which engaged with independent experts and specialist disability groups, published a report and an addendum on 29 March 2010.
The review found that generally the assessment accurately identifies individuals for benefit. It also made some recommendations for changes to the WCA, mainly around:
- simplifying the language
- making greater provision for people awaiting courses of chemotherapy
- widening the criteria for support relating to people’s mental functions
- taking greater account of people’s adaptation to their disability or health condition.
- Work Capability Assessment internal review (433KB)
- Work Capability Assessment internal review – Addendum (113KB)
These recommendations were taken forward in the Employment and Support Allowance (Amendment) Regulations 2011 which were laid before Parliament on 10 February 2011. These come into force on 28 March 2011.
- Employment and Support Allowance (Amendment) Regulations 2011 (Legislation website)
- Act paper containing the Social Security Advisory Committee report and Government response (TSO website)
- Impact assessment and equality impact assessment – Employment and Support Allowance (Amendment) Regulations 2011 (170KB)
Independent review of the WCA
To ensure that the WCA is as fair and accurate as possible, we are committed to a process of ongoing review and improvement. As part of this, Professor Malcolm Harrington, a highly respected Occupational Physician, has carried out two independent reviews of the WCA.
We have appointed Professor Harrington to conduct a third independent review of the WCA and provide further recommendations as appropriate.
ESA and the Welfare Reform Act 2012
The Welfare Reform Act 2012 introduces a wide range of reforms that will deliver the commitment made in the Coalition Agreement and the Queen’s Speech to make the benefits and tax credits systems fairer and simpler.
Contribution-based Employment and Support Allowance legislative changes from May 2012
The Act reforms ESA to make the benefit fairer and to ensure that help goes to those with the greatest need.
Previously, certain young people qualified for contribution-based ESA without having to pay National Insurance contributions. This has been abolished and brings young people claiming ESA in line with other groups.
The Act also introduces a one year time limit to those people claiming contribution-based Employment and Support Allowance who are expected to move towards work (those placed in the Work Related Activity Group). The time limit does not apply to those claiming income-related Employment and Support Allowance or people for whom work is not a viable option (those in the Support Group).
- Changes to contribution-based Employment and Support Allowance – information for claimants (Directgov)
- Changes to contribution-based Employment and Support Allowance – information for advisers and intermediaries
- ESA Legislative Changes 2012 for claimants in Great Britain – March 2012 (133KB)
