To qualify for Incapacity Benefit:
-
you need to have paid the correct National Insurance contributions in the relevant tax years. Young people aged 16 to 25 can qualify for Incapacity Benefit even if they have not paid contributions – check with a benefits adviser
-
if you are self-employed or unemployed, you should claim Incapacity Benefit as soon as your illness prevents you from working or looking for work
-
if you are employed, you can claim Incapacity Benefit when your Statutory sick pay runs out
-
you may have to take a test called the Personal Capability Assessment, which will look at your ability to carry out work-related tasks such as walking, sitting, standing,
lifting, hearing and seeing
Incapacity Benefit is paid at three rates:
-
short-term lower rate of £63.75, for the first 28 weeks
(tax-free during this period)
-
short-term higher rate of £75.40, for 29 to 52 weeks
-
long-term rate of £84.50, for one year and over (people who are terminally ill, or receiving the care component of Disability Living Allowance at the higher rate, can get the long-term rate of Incapacity Benefit after 28 weeks of sickness)
There are additions to these rates depending on your age and dependants. If you are receiving other benefits this can affect your claim for Incapacity Benefit. The amount of Incapacity Benefit you receive can also be affected by your occupational or personal pension. Check with a benefits adviser for more information.
If you receive Incapacity Benefit, you can also get National Insurance contribution credits, which count towards your state pension and other contributory benefits. You might also be able to get help with health costs (for example, prescription charges) under the Low Income Scheme (see help with health costs).
How can I claim?
Contact your local Jobcentre Plus (Jobs and Benefits office in Northern Ireland) or social security office for the necessary form. Alternatively, please see www.jobcentreplus.gov.uk (www.dsdni.gov.uk in Northern Ireland).
If you work for an employer, ask them for form SSP1 which you will also need to fill in as part of your claim. If you are incapable of work for more than seven days, you will also need a medical certificate (sick note) from your doctor.
You will be asked to go to a work-focused interview with a personal adviser. You can ask for the interview to be waived or deferred (at the discretion of the adviser), for example if you are too ill to go or are terminally ill.
Employment and Support Allowance
From 27 October 2008 the Government plans to replace Incapacity Benefit (IB) and Income Support (IS) paid on grounds of incapacity for work with a new benefit called Employment and Support Allowance (ESA). ESA will be a combined contributory and means-tested allowance and will be paid to new claimants. Although existing IB and IS claimants may eventually be transferred onto ESA, they will have their benefits levels protected.
When you claim ESA there will be a 13 week assessment phase. This applies to all new claimants except those who are terminally ill. During the assessment phase you will be paid at the basic rate.
During the assessment period you will be assessed to see if you have limited ability to work, and you will also be assessed to see if you have limited capability for work-related activity. If it is decided that you have limited capability for work-related activity, you will be placed in the support group and will receive an additional payment once the assessment phases has ended.
If it is decided that you do not have limited capability for work-related activity you will be placed in the work-related activity group and will receive an additional payment once the assessment phase has ended.
-
Basic rate is £60.50 (under 25s will be paid at a reduced rate of £47.95 during the initial 13 week assessment phase)
-
Support component is £29
-
Work-related activity component is £24
If you receive the contributory allowance, it is paid at a flat rate as described above. If you receive the means-tested allowance the amount you receive will depend on your circumstances and will be affected by income and savings.
To make a claim you should contact your local Jobcentre Plus, (Jobs and Benefits office in Northern Ireland), or social security office for the necessary form. Alternatively, please see www.jobcentreplus.gov.uk or www.dsdni.gov.uk in Northern Ireland.
If you work for an employer, ask them for Form SSP1, which you will also need to fill in as part of your claim. If you are incapable of work for more than seven days, you will also need a medical certificate (sick note) from your doctor.
New claimants will be expected to attend an initial work-focused interview. The interview can be waived or deferred if it is felt that it would be inappropriate. If you are in the work-focused activity group you will be expected to attend a further 5 work-focused interviews, during which an adviser will try to help you back into work.
Find out more about ESA with our latest factsheet.