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29 May 2008 Employment and Support Allowance update

Employment and Support Allowance (ESA) will be introduced this October. This replaces Incapacity Benefit and Income Support on the grounds of incapacity for new claims.

As part of the ESA process, all persons claiming will undergo a Work Capability Assessment.  This will look at what they are able to do in the workplace and will determine which benefit rate they receive.

When ESA launches this autumn, these rates will apply:

The basic rate will be £60.50 a week, same as Jobseeker’s Allowance for people aged 25 and over.

The standard rate after thirteen weeks on ESA will be £84.50 a week. This is the rate that most people will receive and is the same as the long-term Incapacity Benefit rate.

The rate for the most severely disabled will be £89.50 a week after thirteen weeks on ESA. An additional £12.60 will automatically be paid on top if people have no other income.

It is estimated more people will not pass the Work Capability Assessment compared to the old assessment – resulting in 20,000 fewer people joining the sickness benefits system each year. People who do not satisfy the assessment will have to claim Jobseeker’s Allowance and will be expected to attend interviews and work programmes to help them return to work.

© Law Centre (NI) May 2008

 

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Last Modified: 16 July 2008