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 which is carried out by a healthcare professional.
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.
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
From October 2010, the WCA will begin to be applied 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
In November 2010, Professor Malcolm Harrington published his Independent Review of the Work Capability Assessment (WCA), the first of five annual Independent Reviews. He found that the WCA is the right assessment but it is not working as well as it should. As a result he made a series of practical recommendations for improving the WCA, all of which the Government has accepted.
ESA and the Welfare Reform Bill
The Welfare Reform Bill was introduced to Parliament on 16 February 2011. It 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.
One element of the Bill will reform Employment and Support Allowance to make the benefit fairer and to ensure that help goes to those with the greatest need.
Currently, certain young people qualify for contributory Employment and Support Allowance without having to pay National Insurance contributions. This will be abolished and will bring young people claiming Employment and Support Allowance in line with other groups.
The Bill legislates that a one year time limit applies to those people claiming contributory Employment and Support Allowance who are expected to move towards work (those placed in the Work Related Activity Group). The time limit will 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).
