Reassessment of incapacity benefits Gillian McKenzie Waltham - PowerPoint PPT Presentation

Reassessment of incapacity benefits Gillian McKenzie Waltham Forest Borough Partnership Manager 1

Background The coalition government ‘Programme for Government’ statement published in May 2010 re-stated the intention of the previous administration to re-assess all existing Incapacity Benefits customers for their readiness to Background work. Those unable to work will receive Employment Support Allowance and those assessed as capable of work through the Work Capability Assessment will be moved onto Jobseekers Allowance. 2 IB/IS Migration – an overview for external partners

What are the changes and when are they taking place? Employment and Support Allowance is replacing Incapacity Benefit, Severe Disablement Allowance and Income Support paid on the grounds of illness or disability. Between October 2010 and 2014 Jobcentre Plus will reassess most people on Incapacity benefits, using the Work Capability Assessment, to assess their capability to work. Those assessed fully capable of work will be invited to make a claim to Jobseeker’s Allowance, be able to claim Income Support (if they are entitled under a different condition of entitlement) or will move off benefit. Those who cannot work or have limited capability to work will move to Employment and Support Allowance. 3

How will it affect customers? As part of this reassessment the majority of incapacity benefits customers will undergo a Work Capability Assessment to determine their future benefit entitlement. Current incapacity benefits customers will be referred to Medical Services for consideration of a Work Capability Assessment. The assessment will concentrate on what people can do rather than only focusing on what they can’t. Customers will continue to receive their current benefit (subject to continuing to satisfy the conditions of entitlement) until a decision is made on their case upon receipt of the Work Capability Assessment outcome. 4

Why are we reassessing Incapacity Benefits customers? There are over two and a half million people on incapacity benefits. We know that many of them, with the right support, could and indeed do want to work but the current system doesn't give them that option. There is strong evidence that long periods out of work can contribute to: • 2 to 3 times decrease in general health • 2 to 3 times increase in mental health problems • 20% greater risk of mortality Source - Waddell, Burton, ‘Is Work Good for Your Health and Wellbeing?’: 2006 There is growing evidence that work can: promote recovery from both mental and physical health problems • • minimise the risk of the physical, mental and social effects of long-term unemployment such as social exclusion and poverty 5

When a decision has been made - Employment and Support Allowance (ESA) Where a customer is assessed as eligible for ESA their claim will be transferred automatically. No one moving from their existing benefit to ESA will see a reduction in the level of their benefit entitlement at the point of change. There are two groups in ESA with different allowances and conditionality: Work Related Activity Group (WRAG) If a customer is placed in the WRAG, they will be expected to particitake part in work focused and will receive a Work-Related Activity component in addition to their basic rate of benefit. If a customer refuses to go to the Work Focused Interviews, or to take part fully in the work focused interviews, it may affect their entitlement to Employment and Support Allowance. Support Group (SG) If a customer is placed in the SG because their illness or disability has a severe effect on their ability to work, they will not be expected to take part in any work related activity. They can do so on a voluntary basis if they want to. 6

When a decision has been made – Jobseekers Allowance (JSA) If a customer is found capable of work they may be able to claim JSA. They will be given the option to make a claim when they are informed that their claim for ESA has been disallowed. There are two types of Jobseeker's Allowance: Contribution-based Jobseeker's Allowance Jobcentre Plus can pay this for up to 182 days. It’s based on how much National Insurance a customer has paid. Generally, self-employed contributions will not help a customer qualify for contribution-based Jobseeker’s Allowance. Income-based Jobseeker's Allowance This is based on a customers income and savings. They may get this if they have not paid enough National Insurance contributions (NICs) (or they have only paid contributions for self-employment) and they are on a low income. 7

When a decision has been made – Underlying entitlement to Income Support (IS) Some customers who are found capable of work will be entitled to Income Support on other grounds. For example if they have young children. Where this is the case, and we are aware of the entitlement, the customer will be given the option of continuing to claim Income Support. Although the amount of benefit may change. They will not need to make a new claim 8

Customer journey I attend ~WFHRAs the WFI have been suspended for Atos call me 2 years from 12 Someone calls Someone calls 19/07/2010 to arrange & Someone calls to gather any to advise on conduct a 11 me to give missing ESA entitlement WFHRA~ further information and and next steps Someone WRAG 10 information and explain the in the ESA calls me to The Job Centre advice, find out if next steps (this I become regime arrange a contacts me to I need extra help TP only applies to aware about WCA Support Group arrange a WFI with the process customers with 9 forthcoming missing 8 changes to my information) ALLOWED I receive a letter benefits 4 with my ESA 7 3 5 award notification 2 I receive a letter 6 1 with my JSA award D I S A L I receive a L O notification W E D 13 medical 14 Appeals questionnaire 18 I receive a letter I attend to fill out informing me that the WCA Someone calls to changes are about with Atos 15 inform me of the to commence and I receive a I attend entitlement decision advising me on letter informing 16 I write a the WFI and advises me of the next steps me of benefit letter/ call my options. If I wish disallowance to appeal* 17 to claim JSA I am and the WCA transferred to The Job Centre outcome someone who takes contacts me to my claim details arrange a WFI 9

What does this mean in Waltham Forest? Total number of people claiming ESA and IB in February 2010 was 9,990 (WF) Total number of people claiming IB/SDA in February 2010 was 8210 From that total 8120 of them were of working age The 8210 was broken down into 7530 people claiming IB and 680 claiming SDA The highest amount of people claiming IB/SDA are aged between 35 -44. The highest amount of people claiming for more than 5 years are also in this age group 10 IB/IS Migration – an overview for external partners

What does this mean in Waltham Forest….continued? • In Waltham Forest 5340 people have been claiming IB/SDA for more than 5 years, which equates to 65% of the total people claiming. • 3410 of IB/SDA customers in Waltham Forest suffer from mental health issues, this equates to 41% of the total. Which is lower than the overall London figure of 46% and the national figure of 43%. • Mental health customers also make up 42% of people claiming IB/SDA for more than 5 years. • The highest amount of people with mental health issues are aged between 35 – 44. • Leyton ward has 565 people claiming IB/SDA which is the highest in Waltham Forest. • Chingford Green has 225 people claiming IB/SDA which is the lowest in the borough. 11

IB & SDA Benefit Claimants by Ward total 2003 CAS ward claimants IB SDA 16-24 25-49 50-59 Male Female Cann Hall 475 445 30 15 250 155 280 195 Cathall 535 495 40 20 280 180 310 225 Chapel End 315 295 20 10 160 110 165 150 Chingford Green 225 200 25 10 120 65 105 120 Endlebury 295 275 20 10 135 115 160 135 Forest 400 350 50 15 185 160 230 170 Grove Green 310 280 30 10 160 105 170 140 Hale End and Highams Park 315 285 30 15 175 95 165 150 Hatch Lane 410 390 20 25 225 120 215 195 High Street 415 395 20 10 225 140 230 185 Higham Hill 500 465 35 20 270 170 260 240 Hoe Street 500 445 55 15 270 170 270 230 Larkswood 385 350 35 25 185 125 215 170 Lea Bridge 470 435 35 20 255 155 270 200 Leyton 565 525 40 30 310 170 320 245 Leytonstone 425 365 60 10 215 155 255 170 Markhouse 450 420 30 10 245 140 245 205 Valley 350 315 35 20 170 125 190 160 William Morris 380 345 35 10 210 120 210 170 Wood Street 515 475 40 15 295 165 295 220 Column Total 8,235 7,550 685 315 4,340 2,740 4,560 3,675 12

Breakdown by age and duration of people claiming IB/SDA 3 months 1 year and 2 years and up to 3 6 months 5 years and Age Total up to 6 up to 2 up to 5 months up to 1 year over months years years aged 16-17 ~ ~ ~ ~ ~ ~ ~ aged 18-24 320 ~ ~ ~ 80 170 60 aged 25-34 1,060 ~ ~ 10 120 320 600 aged 35-44 2,000 ~ 10 10 210 530 1,240 aged 45-49 1,270 ~ 10 10 110 320 820 aged 50-54 1,320 ~ ~ 10 100 290 910 aged 55-59 1,420 ~ 10 10 100 270 1,040 aged 60-64 740 ~ ~ ~ 30 130 580 aged 65 and over 90 ~ ~ ~ ~ ~ 90 Column Total 8,210 20 30 40 750 2,030 5,340 13