Employment and Support Allowance (Contribution based) - replacement for Incapacity Benefit

Incapacity Benefit (contribution-based) was replaced for most new claimants from October 2008 by Employment and Support Allowance (contribution-based).

Employment and Support Allowance is an income replacement benefit (see Introduction) for people of working age (16-pension age) who cannot work because of illness or disability and who cannot get Statutory Sick Pay (e.g. because they are not employed or because entitlement to Statutory Sick Pay has run out). If the client is employed and have been sick for less than 28 weeks, s/he may be entitled to Statutory Sick Pay rather than Employment and Support Allowance (contribution-based).

Employment and Support Allowance (contribution-based) is made up of a basic allowance paid for the first 13 weeks (the assessment phase) and increased thereafter by a work-related activity component or a support component.

To get this benefit, the client must be accepted as having limited capacity for work.

There are detailed rules allowing some people to keep their Employment and Support Allowance in full whilst doing a limited amount of work. Unless these rules apply, the client will not be entitled to Employment and Support Allowance if s/he starts work, so s/he will need to check this out first.

Employment and Support Allowance (contribution-based) cannot be paid at the same time and to the same person as any other income replacement benefit.

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