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Since January 2011, you can no longer claim Incapacity Benefit (IB) Instead, it is been replaced by Employment and Support Allowance for new claimants.
If you are already receiving IB, you will be contacted by Job Centre Plus at some time before the end of 2014, to review your claim. Until this review, you will continue to receive IB, as long as you still meet the conditions to do so.
Incapacity Benefit may be paid at 3 different rates:
Short-term Incapacity Benefit at the lower rate
Paid for the first 28 weeks
Weekly amount - £74.80 if you are under state pension age
Weekly amount - £95.15 if you are over state pension age
Short-term Incapacity Benefit at the higher rate
This is paid from the 29th week to the 52nd week
Weekly amount - £88.55 if you are under state pension age
Weekly amount - £99.15 if you are over state pension age
Long-term Incapacity Benefit
Paid if you have been sick for over 52 weeks. People over state pension age are not eligible.
Weekly amount - £99.15
Incapacity Age Addition
You may be able to get an Incapacity Age Addition if you get long-term Incapacity Benefit and were aged under 45 on the day you became unable to work. This includes days when you got Statutory Sick Pay.
You may also get extra benefit for a partner, civil partner of person who looks after your children.
If you have a gross pension of more than £85 per week, your benefit will be reduced by half of the amount over £85. For example, a gross pension of £105 per week would mean that your benefit would be reduced by £10, i.e. half the difference between 85 and 105.
As always, there are some exceptions to this rule:
• if you have received IB since before 6 April 2001
• if your claim is covered by the linking rules for IB, and links back to before 6 April 2001
• or you receive the highest rate care component of Disability Living Allowance
What happens if you go into hospital?
If you go into hospital your benefit will not usually reduce straightaway. You should let your social security office know anyway.
if you go into hospital from a local council residential care home, your Incapacity Benefit will usually reduce straight away.
If you get extra money for someone who looks after your children for you, and that person goes into hospital, the extra money may stop straightaway.
After 52 weeks in hospital
Your benefit will usually reduce.
Your benefit may reduce by less if someone depends on you.
If you get extra money for your husband or wife and they are in hospital, the extra money you get for them will usually be reduced.
You can do some work while receiving Incapacity Benefit:
• work for less than 16 hours a week, on average, with earnings up to £97.50 a week for a 52 week period.
• work for less than 16 hours a week, on average, with earnings up to £97.50 a week for as long as you meet the threshold for incapacity, without a medical assessment.
• work for up to £20.00 a week at any time as long as you are receiving IB.
• you can work in supported permitted work for earnings of up to £97.50 a week for an unlimited period whilst receiving IB.
Supported permitted work is work done with ongoing support or supervision from a professional caseworker (employed or engaged by a public body or voluntary organization). This could be work done in the community or in a sheltered workshop. It also includes work done under medical supervision as part of a hospital treatment programme.
You must inform HMRC (HM Revenue & Customs) when you start permitted work, and you may have to pay tax on your extra income.
If you get Income Support, Housing Benefit or Council Tax Benefit your benefit will be reduced if your average earnings are more than your earnings disregard.
