Welfare Reform

Incapacity benefits

The Green Paper: No-one written off: reforming welfare to reward responsibility, published on 21 July 2008, outlines next steps for Employment and Support Allowance and incapacity benefits reform. This includes plans to move existing Incapacity Benefit customers onto Employment and Support Allowance. The proposals were open to public consultation until 22 October 2008. The Government’s response will be published in due course.

Employment and Support Allowance

From 27 October 2008, Employment and Support Allowance replaced Incapacity Benefit and Income Support claimed on the grounds of incapacity for new customers. The new system considers what an individual is capable of, and what help and support they need to manage their condition and return to work.

The Government proposes transferring all existing incapacity benefits customers to Employment and Support Allowance by 2013. Cash levels of existing benefits will be protected.

Work Capability Assessment

A new test, the Work Capability Assessment, was introduced in October 2008 for Employment and Support Allowance claims and is applied to all those people claiming the allowance. It assesses what an individual can do – rather than what they can’t do. The assessment looks at people’s physical and mental ability, including conditions such as learning disabilities and other similar conditions.

Following this assessment most individuals will be given support and employment advice to enable them to return to work where possible.

People whose condition causes very severe limitation of their ability, who are not able to engage in any work-related activity, will get a higher rate of benefit. They will still be able to volunteer to get support and employment advice if they want to.

From 2010, this new, more accurate Work Capability Assessment will begin to be applied to existing incapacity benefits customers.

This measure is part of The Welfare Reform Act 2007.

Further details on the support available to people on incapacity benefits can be found at Pathways to Work.