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Incapacity Benefit/ Sickness Route Benefits Reform

 

Major changes to the way in which people who are too unwell to work claim benefits look set to create a two-tier system for sickness route claimants by 2008.

Changes to the the benefits system since October 2008, means that no claims can now be made for IB - Incapacity Benefit. Whilst IB will be continued to be paid for those already in receipt of it (prior to October 2008) if you are now unwell and unable to work, then you should claim for Employment and Support Allowance

Those on Incapacity Benefits will find that their claim will be re-assessed from the period of April 2011. This re-assessment will take place and continue through until March 2014

If your IB claim is due for renewal, you will possibly be asked to fill in a Personal Capability Assessment form - with all that entails! you may still have to complete a PCA.  BUT - You may instead be asked/told to fill in a WORK Capability Assessment form instead (WCA). This is all part of the new system to get people onto Jobseeker's Allowance type benefits, and could have changes in store for you. There will inevitably be a medical suggested for some also.

Below is to be revised and updated   >>>>>

The new benefits’ working titles are ‘Disability and Sickness Allowance’, which will be paid to those with the ‘most severe conditions’ and ‘Rehabilitation Support Allowance’, which will be paid to those whose condition is deemed to be ‘manageable’ (i.e. the vast majority of claimants, including the bulk of people with ‘mild to moderate’ mental health problems…)

Unlike Incapacity Benefit, which is paid at a higher rate after six months and then goes up again after a year, basic RSA will always be paid at the same level as Jobseekers Allowance. However claimants will be able to increase the benefit they are paid by attending ‘Work Focused Interviews’ and by ‘taking steps to get them back towards the labour market’. Those unwilling – or unable - to do so will find themselves around £20 a week worse off than they currently would be.

On the other hand the Government promises that DSA will be paid at ‘a higher rate’ than the amount people currently get on long term Incapacity Benefit (a basic rate of around £75 a week). No one seems able to say exactly HOW much higher, although a figure of £80 has been used as an example. Nor is it clear whether an extra amount will still be payable to recipients who fall ill before a certain age, as currently happens within Incapacity Benefit. Yet this would need to happen within both DSA and RSA to ensure that new claimants were potentially no worse off than those covered by the ’old’ system.

And although people on DSA may be financially better off, they will still be expected to take part in ‘Work Focused Interviews’ and ‘encouraged’ – although not required - to engage in ‘return to work activity’.

The new proposals will also apply to people who don’t have sufficient National Insurance Contributions - who would currently receive Income Support through the sickness route, so that RSA and DSA will both have ‘contributory’ and ‘non-contributory’ forms. How nice and straightforward…

Who will be better off?

People accepted as having severe illnesses or disabling conditions and people who are willing and able to engage with activities aimed at getting them back to work will be ‘better off’ – how much so is not known.

Who will be worse off?

People deemed to have ‘only’ mild to moderate mental health problems who cannot attend work focused interviews and engage in activities aimed at getting back to work will be around £20 a week worse off than under the current system.

But taking a wider view I think we’ll all be worse off… with a divisive two-tier system that looks first at a person’s diagnosis and then at the person themselves.

And certainly the health repercussions of having to live on substantially reduced money day after day, month after month, year after year are significant.

e.g. It is 2009. Elaine struggles with anxiety and severe agoraphobic symptoms after being raped nine years ago. She has been forced to claim sickness-route benefit in her own right since her husband died recently. Even assuming that she is able to make the claim in the first place, unless she can somehow overcome the difficulties that have kept her virtually housebound for a decade, she may remain entitled to only the up-rated equivalent of around £55 a week for the rest of her pre-pension age life.