Employment and support allowance (ESA) is a new benefit paid if your ability to work is limited by ill health or disability and you are claiming after 27 October 2008. It replaces both incapacity benefit (IB) and income support (IS) paid on the grounds of incapacity.
If you are claiming ESA you must:
This applies to all new ESA claimants, with the exception of those who are terminally ill. The assessment usually takes place over 13 weeks, but can be longer, during which claimants undergo a work capability assessment and a work focused interview.
You can view the regulations for the assessment phase at www.opsi.gov.uk/si/si2008/uksi_20080794_en_3#pt2
The ESA work capability assessment (WCA) is more complex than that currently used for incapacity benefit. The assessment will be carried out by a health care professional working on behalf of the Department for Work and Pensions. It is intended to:
The test for ‘limited capability for work’ has many similarities to the incapacity benefit PCA. Points are scored based on your ability to carry out a range of physical or mental health activities as appropriate. You score points according to your inability to carry out these tasks. If you score 15 points you are deemed to have limited capability for work and can stay on ESA. If you fail this part of the test you will be moved onto jobseeker’s allowance instead.
You can view the activities for the limited capability for work test at www.opsi.gov.uk/si/si2008/uksi_20080794_en_15#sch2.
The 'limited capability for work-related activity' test is used to decide whether you are placed in the support group of claimants or the work-related activity group (see 8). The test has a list of 46 descriptors, relating to both physical and mental functions. If at least one of them fits, you will be placed in the support group of claimants.
You can view the activities for the limited capability for work-related activity test at www.opsi.gov.uk/si/si2008/uksi_20080794_en_17#sch3.
The ‘work-focused health-related assessment’ (WFHRA) collects information about your ‘functional capacity’ to carry out tasks. This focuses on the things you can do as opposed to the limited capability for work assessment, which focuses on the things you cannot do. The WFHRA also collects information about any health interventions that could improve your functional capacity and thus support a move back into work. This could include the use of appropriate aids and adaptations. The information collected in the WFHRA is put into a ‘capability report’ which is used in the work-focused interview.
You can view the regulations for the work-focused health-related assessment at www.opsi.gov.uk/si/si2008/uksi_20080794_en_6#pt8-ch1.
For more information see our Factsheet F32 - employment and support allowance medical tests.
You are expected to attend an initial ‘work-focused interview’, unless you are terminally ill. This will normally take place during the 8th week of their ESA claim. At this interview a ‘personal adviser’ will discuss your work prospects, the steps that you are willing to take to move into work and the support available to you. As a guide, the personal adviser will be using the capability report that was produced in the work-focused health-related assessment.
The interview can be waived if you are likely to be starting a job or returning to work. The personal adviser can also defer an interview if, because of your condition, it would be inappropriate at that particular time.
You can view the regulations for the work-focused interview at www.opsi.gov.uk/si/si2008/uksi_20080794_en_6#pt8-ch2.
You will need to have paid enough National Insurance contributions in specific tax years to satisfy this test. If you do pass the test you will receive a flat-rate benefit, which is similar to incapacity benefit.
Contributory ESA has no age-related additions or additions for dependents (such as a wife, husband or civil partner or child) premiums or allowances for housing costs. In order to get additions for your partner, premiums or housing costs you will need to also satisfy the low income test (see 6).
If you need extra money to look after a child, you should claim child tax credit .
If you have limited capability for work from and claim ESA before the age of 20 (or 25 if you have been in education or training) you do not have to satisfy the contribution conditions.
This is a test similar to income support. In brief, your needs (and those of your partner if you have one) are compared with your resources, such as your income and savings, and the income-related allowance worked out from this comparison.
If it is decided that you have a limited capability for work-related activity, you will be placed in the support group of claimants. If you are placed in this group, you will not have to undertake work-related activities (though you can volunteer to do so if you want).
If it is decided that you do not have a limited capability for work-related activity, you will be placed in the work-related activity group of claimants. You will have to adhere to strict work-related conditions in order to continue receiving the benefit in full. This will involve attending a series of five further work-focused interviews in addition to the initial work-focused interview.
These interviews will normally take place each month and at them the personal adviser will try to help you back into work. As with the initial work-focused interview, they will be using the capability report as a guide. They will draw up an ‘action plan’, which will outline the activities that you could undertake to help you move into work.
During the assessment phase you are paid a ‘basic allowance’. This is set at a similar level to that of jobseeker’s allowance. If you are aged under 25 you will receive a reduced rate of this basic allowance. Once you have completed the assessment period the reduction for under 25s does not apply.
If you are on contribution based ESA you will get:
under 25 – £47.95
age 25 and over – £60.50
If you are on income based ESA you may get:
single and under 25 – £47.95
single and age 25 and over – £60.50
lone parents age 18 and over - £60.50
couples age 18 and over - £94.95
You may also be able to get additional premiums (pensioner, severe disability, carer and enhanced disability premiums). For information on these see our Factsheet F45 - income support. There is no disability premium with ESA.
After the assessment phase you can receive one of two additional payments depending on whether you are placed in the work-related activity group or the support group.
If you are placed in the work-related activity group you will receive a work related activity component of £24.00.
If you are on contribution based ESA you will get:
under 25 – £84.50
age 25 and over – £84.50
If you are on income based ESA you may get:
single and under 25 – £84.50
single and age 25 and over – £84.50
lone parents age 18 and over - £84.50
couples age 18 and over - £118.95
You may also be able to get additional premiums and housing costs.
If you are placed in the support group you will receive a support component of £29.00. If you are terminally ill this component will be paid to you during the assessment phase.
If you are on contribution based ESA you will get:
under 25 – £89.50
age 25 and over – £89.50
If you are on income based ESA you may get:
single and under 25 – £102.10
single and age 25 and over – £102.10
lone parents age 18 and over - £102.10
couples age 18 and over - £142.10
Everyone in the support group, who is on income based ESA, gets the enhanced disability premium (included in the figures above). You may also be able to get additional premiums and housing costs.
Both the initial work-focused interview and the follow-up interviews are mandatory. If you fail to either attend or participate in a work-focused interview, your ESA may be paid at a reduced rate or ‘sanctioned’. Sanctions can only be applied to the additional payments of ESA, not the basic allowance. Hence sanctions can only be applied when the assessment phase of the benefit is over.
For the first 4 weeks the sanction will consist of a 50% reduction to the additional payment within your ESA. Thereafter the additional payment will be removed completely. The sanction will last for as long as you do not comply with the requirements that are demanded of you. For instance, if you refuse to attend a work-focused interview, the sanction will apply until you do attend one.
For more information see our Factsheet F34 - employment and support allowance sanctions.
If you are already receiving incapacity benefit (IB) or income support (IS) paid on the grounds of incapacity when ESA is introduced you will continue to receive those benefits, rather than ESA, for the time being.
You will also continue to come under the rules and conditions which apply to IB or IS. So, for instance, your incapacity will be tested under the old IB personal capability assessment rather than the new ESA work capability assessment . However from April 2010 you will be required to take the work capability assessment test.
Though the majority of IB and IS claimants should not be worse off under the ESA system, some groups of claimants may be. If you are in this position, once you have been moved onto ESA, you should receive ‘transitional protection’. This will bring your ESA up to the same level as your existing rate of IB or IS.
This factsheet is based on the information available at the time it was written. As we find out more it will be updated. You should regularly check our website at www.disabilityalliance.org for these updates and any other information we post.
You can also obtain copies of our factsheets by contacting Disability Alliance on 020 7247 8776 (voice and minicom) or by fax on 020 7247 8765.
For more detailed information Disability Alliance will be producing an employment and support allowance guide later in the year. This is now available to order.
May 2008
