Employment and Support Allowance

Employment and Support Allowance (ESA) is a benefit for people unable to work due to illness or disability. ESA replaced income support (IS) and incapacity benefit (IB) for new claimants from October 2008.

Employed people if not receiving sick pay from their employer would normally claim Statutory Sick Pay for 28 weeks before claiming for Employment and Support Allowance. The unemployed and self employed can claim ESA straight away.

There are two types of employment and support allowance:-

• Contributory ESA
  Paid when satisfying national insurance (NI) contribution payment levels.
• Income related ESA
  Paid subject to means testing without considering NI contributions. It is possible to receive contributory ESA, topped up income related ESA.

ESA payment rates

An assessment rate is paid for the first 13 weeks of the claim while a decision is made on the claimant's capability for work by means of a work capability assessment. During this discovery period, payment rates are:

• A single person aged under 25 up to £56.25 / week
• A single person aged 25 and over up to £71.00 / week

If after the assessment is completed and an award made, the claimant is put into one of two groups:-

• Work related activity group
  The claimant must attend work related activity groups.
• Support group
  For claimants with more severe illness or disabilities.

Contributory ESA is not means tested, but affected by pension income or income from payouts from income protection insurance. Claimants are allowed to do some paid work, but may lose entitlement if above a certain value. Under the permitted work rules claimants can:

• Work fewer than 16 hours a week on average, with earnings up to £99.15/ week for 52 weeks.
• As above but for unlimited duration when the claimant in the ESA support group.
• Earn up to £20 a week, at any time.
• Earn from supported permitted work up to £105.05 a week for as long as they are receiving, provided they meet the Supported Permitted Work criteria.
• Supported permitted work means work that is supervised by someone who is employed by a public or local authority or a voluntary organisation, and whose job it is to arrange work for disabled people.

Figures checked for correctness: May 2012