Incapacity Benefit

Applies to: England, Wales, Scotland and Northern Ireland

Who does it help?

Incapacity Benefit is money for people who cannot work because they are sick or disabled.

You cannot make a new claim for Incapacity Benefit. This is because Incapacity Benefit has been abolished for new claims, except in very limited cases. If you cannot work because you are sick or disabled, you can claim a different benefit instead, called Employment and Support Allowance (ESA). If you are already getting Incapacity Benefit, you will carry on getting it as long as you still qualify.

Is it means-tested?

It does not usually matter if you have other income or savings. But you might get less Incapacity Benefit if you have money coming from a pension or health insurance policy.

What help does the benefit provide?

Incapacity Benefit is money that that you can spend as you want. It is usually paid into your bank or building society account. You can be paid at a post office in some cases.

How much does it pay?

There are three rates of Incapacity Benefit. The rate you get depends on how long you have been unable to work:

short-term (lower) Incapacity Benefit is paid for the first 28 weeks. It is £68.95 a week. It is £87.75 if you are over state pension age.
short-term (higher) Incapacity Benefit is paid from weeks 29 to 52. It is £81.60 a week (£91.40 if you're over state pension age).
long-term Incapacity Benefit is paid from week 53. It is £91.40 a week.

You may be able to get extra money with your long-term Incapacity Benefit if you were under 45 when you became too ill or disabled to work. You may also be able to get extra money for your husband, wife, or civil partner or the person who looks after your children.

Is it a taxable benefit?

Incapacity Benefit is not a taxable benefit for the first 28 weeks. After the first 28 weeks, it is a taxable benefit. You must tell your tax office when you get Incapacity Benefit after 28 weeks.

How to claim

You cannot make a new claim for Incapacity Benefit.

You may be able to claim backdated Incapacity Benefit for up to three months. You do not have to give a reason for the delay in claiming backdated Incapacity Benefit.

Incapacity Benefit claims to be reassessed

If you currently get Incapacity Benefit, your claim is to be reassessed to see if you are now fit to work.

The assessment will be carried out by the Department of Work and Pensions (DWP) and will take place between October 2010 and March 2014.

The first people to undergo the checks are those living in Aberdeen and Burnley. Assessment on people living in the rest of the country will start in February 2011.

After the assessment, depending on your circumstances, you may move onto the following benefits:

Jobseeker's Allowance (JSA) if you are capable of work
Employment and Support Allowance (ESA) if you need more financial support while you prepare for work
Employment and Support Allowance (ESA) if you are severely disabled or terminally ill. You will not be expected to look for work
Income Support or Pension Credit if you satisfy the conditions.

You will not be affected if: