Employment and Support Allowance (ESA):the Implications for People with Depression
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Employment and Support Allowance (ESA) is a new benefit that will replace Incapacity Benefit (IB) and Income Support (IS) paid on the grounds of ill-health or disability. ESA will have a new structure that has both a contributory element and a means-tested element. The test of entitlement to the contributory element will be similar to that currently used for IB, i.e. sufficient national insurance contributions paid. The test of entitlement for the means-tested element will be similar to that currently used for IS, i.e. an income-based assessment. According to the Government, ESA has been designed to help claimants achieve their full potential, if they have a health condition or are disabled, and help them to gain independence from benefits. It does so by focusing on a claimant's abilities - on what they can do rather than what they cant - and supports their return to work. Disability Alliance has produced detailed information on how the new benefit will work, and this is summarised in the remainder of this article. There will be a 13-week assessment phase for all new ESA claimants. During this period, claimants will be paid an 'assessment phase' rate of ESA, with a lower rate payable for under 25-year-olds. After the 13-week assessment phase, there will be an additional element payable on top of the basic rate of ESA. Claimants placed in the 'support group' will receive a slightly higher element than claimants in the 'work-related activity group'. Claimants under 25 years that have completed the 13-week assessment phase will receive the full basic ESA rate rather than the reduced amounts payable in the assessment phase referred to above. Further, the Severe Disability Premium and Enhanced Disability Premium, currently payable with IS, will also be payable under the new system. If you are in the work-related activity group, you have to participate in the work-focused health-related assessment and the work-focused interviews, otherwise your ESA could have a sanction applied. Sanctions can only be applied to the additional element of ESA that becomes payable after the 13-week assessment period has ended. Thus, an ESA claimant will always retain entitlement to the basic or 'assessment phase' rate of ESA, provided they satisfy the other basic entitlement criteria of having a limited capability for work. A sanction will initially be a 50% reduction of the additional element for 4 weeks. This will be followed by a 100% reduction of the additional element, and this lower rate of benefit will be paid until the claimant complies with the requirement(s) placed upon them. ESA claimants in the support group cannot have a sanction applied to their ESA.

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