A-Z of Benefits

Short term - £63.75 or £75.40
Long term - £84.50

Age addition - Under 35 - £17.75
                        Aged 35-44 - £8.90

Who is it for?
People unable to work because of sickness. See also Statutory Sick Pay.

Who pays it?
Job Centre Plus

Which leaflet? And how is it claimed?
IB40 and IB202. Claim for first 7 days on self-certification form SC1. Then by medical certificate and then by Personal Capability Assessment conducted by DWP. Claims normally now made by phone (0800 0556688) and followed up with a work-focussed interview at Job Centre Plus. Paper claims are still acceptable and claimants should not be refuse access to them. 

What are the age limits?
Only up to pension age (60 women, 65 men). IBY is for people aged 16-19 (under 25 in some cases)

National Insurance based?
Normally yes and payable only if claimant has worked in one of last 3 complete tax years (with some concessions for carers). People disabled before age 20, and some aged 20-24, will get Incapacity Benefit without any NI test. This is known as IBY.

Means tested?
No. But claims that began after April 6th 2001 are reduced by 50p for every £1 that occupational or private pension exceeds £85 per week (with some exceptions e.g. people getting higher rate DLA Care)

How long does it last?
The short-term rate is for the first 28 weeks, the short-term higher rate from week 29 to week 52, and the long-term rate from week 52 onwards.

What is effect on other benefits?
Counted in full for all means tested benefits.

Is it taxable?
The short-term higher rate and the long-term rate are taxable.

Increases for dependants?
Yes, but only for an adult if there is a child, or adult is 60+ No additions paid for children - claim CTC instead.

Payable if in EU or other?
Yes, normally for up to 26 weeks of temporary absence. But long-term rate paid in EU or other reciprocal agreements countries.

Points to watch
Some claimants are exempt from ‘Personal Capability’  test eg severely mentally impaired people. Incapacity benefit no longer 'downrated'  whilst in hospital. Young people transferred onto IBY from SDA may lose income support. People on occupational pensions often fail to claim the IB that is also due to them. Can be claimed by people in education.

Incapacity Benefit being reformed in October 2008 into an Employment and Support Allowance for new claimants. Pathway to Work scheme went nationwide from April 2008, which involves more strinigent testing of fitness for work and involvement of private and voluntary sector organisations in supporting people into work. 

People getting incapacity benefit can do part-time ‘permitted work’ (formerly known as therapeutic earnings) but strict rules exist re earnings and hours and extent of work allowable.

The A-Z of Benefits 2008 was compiled by Gary Vaux and Community Care.