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Contributory ESA cuts

2 December 2010

DWP has issued a factsheet on implementation of the Government proposal to time-limit contributory ESA to 12 months.

The time limit is being implemented from April 2012 but will be retrospectively fitted so that people receiving contributory ESA from April 2011 will immediately be affected.

DA is very concerned about these proposals which the Government estimates will cut £2 billion from welfare expenditure. DA analysis suggests that this figure is based on 400,000 people losing all out of work benefits. ESA is tough to access and only paid to people with significant health problems or impairments. We are seeking further information on the number of disabled people affected by this benefit cut from DWP. We believe this information is required under equality legislation to demonstrate that DWP has properly impact assessed such a significant policy change.

DA has also asked for clarification of the DWP suggestion that ‘60% of all those claiming ESA come off benefit within a year’. There are currently 480,000 people on ESA so 60% having left would mean 1.2 million people having received ESA which does not appear to be supported by DWP onflow figures for ESA.

Click on the link below to see the full DWP factsheet.

More information

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