RBLI

Pathways to Work

Employment and Support Allowance

The Welfare Reform Act 2007 has paved the way for a new benefit – Employment and Support Allowance – to be introduced in October 2008.

From 2008, for new claimants only, ESA will replace Incapacity Benefit and Income Support paid on the grounds of incapacity for work.

The structure of ESA

• When a person applies for ESA they will enter an assessment phase lasting up to 12 weeks (including the new Work Capability Assessment, below). After eight weeks, customers will undertake a work-focused interview (WFI). During this phase they will receive a 'holding benefit' set at Jobseeker's Allowance rates
• A new test, the Work Capability Assessment (WCA), will replace the existing Personal Capability Assessment alongside the introduction of ESA, applicable for all people claiming the new allowance
• If the WCA confirms eligibility the customer will move to the main phase of ESA. Most will receive the 'Employment Support' component, which will be conditional on creating a personal action plan focused on rehabilitation and work-related activity
• The benefit rate will be higher than the holding benefit and set above the current long-term Incapacity Benefit rate. If claimants do not attend the WFI or prepare an action plan the benefit will be reduced in a series of slices down to the holding benefit level
• Customers with the most severe illnesses and disabilities, as identified in the new WCA, will receive the 'Support' component of ESA, which will be paid at a higher level than the current equivalent rate. They will not be required to undertake work-related activity, but will be able to engage in it on a voluntary basis

Why introduce ESA?

The intention of ESA is to reduce the number of people claiming incapacity benefits whilst providing a more effective route to employment.

Background:

• 2.66m people are in receipt of Incapacity Benefit – these figures broadly static over last 10 years
• 1 million Incapacity Benefit customers say they want to work
• If on Incapacity Benefit for 2 years, a person is more likely to retire or die on benefit than return to work
• Inactivity worsens the health of many customers

Long periods out of work are known risks to health. For people with common health problems, there is strong evidence that work:

• Promotes recovery and aids rehabilitation
• Leads to better health outcomes
• Minimises the harmful physical, mental and social effects of long-term sickness absence
• Improves quality of life and well-being
• Reduces social exclusion and poverty

ESA will not contain age additions or adult dependency payments.

Those customers currently receiving Income Support plus the Enhanced Disability Premium or the Severe Disability Premium will continue to get the additional support currently provided through these premiums.

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