Think-tank calls for benefit reform

December 13, 2004 in Disability

Incapacity benefit has become a barrier to work and should be
replaced by a new set of measures, according to a leading
think-tank.

The Institute for Public Policy Research wants incapacity benefit
to be replaced by a flat-rate “earnings replacement allowance”
alongside an enhanced disability living allowance to ensure that
the extra costs of living with a health problem or disability can
be met. This would split disability from incapacity and remove the
incentive to stay on incapacity benefit longer to qualify for extra
money.

In a report, the IPPR points out that claimants must currently
demonstrate they are incapable of work in order to receive the
benefit, and risk losing it if they look for a job. Yet they are
also required to attend work-focused interviews.

The think-tank would also like to see agreed action between
claimants and personal advisers towards “social and economic
inclusion”, but not necessarily employment.