Government Goes Against Spirit Of Parliamentary Promise To Disabled People, UK

Main Category: Public Health
Article Date: 31 Mar 2008 - 3:00 PDT

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Commenting on the announcement by the Secretary of State for Work and Pensions, James Purnell, of the entitlement rates for the new Employment Support Allowance, Child Poverty Action Group's Head of Policy, Paul Dornan, said:

"Ministers gave their word in Parliament that the new benefit would be higher. Pinning back the headline rate to the current level may leave them technically in the right, but morally in the wrong.

"Some groups will actually be worse of under the new benefit by as much as £400 a year. This reform was never presented as an opportunity to squeeze out savings from the poorest disabled people and it must not be used for that.

"Disabled people and their families had been led to expect better protection from poverty in return for the extra conditions applied to the new benefit. It is wrong that some of the poorest families will be worse off, despite rising food costs and more disabled people in fuel poverty."

Notes

- Many claimants on Disability Living Allowance will receive less under the new system than they would have under the old, due mainly to the lower amounts payable during the assessment phase. Over the first year of claim they are about £400 worse off.

- People in the work-related activity group will receive £84.50 after 13 weeks. This compares with existing claimants on Income Support who are entitled to the disability premium who get £86.35, amounting to a reduction of £1.85 per week for those on the new benefit.

- Those on contribution-based only ESA will lose entitlement to age additions and additions for spouses. For example, under the current system someone who became sick when under 35 will receive a long term rate of £102.25. Under the new system they will receive £89.50.

- The basic allowance of ESA is £60.50. But during the initial 13 week assessment phase under 25 year olds will receive a lower amount of £47.95. The work-related activity component will be £24 and the support component £29. These components only become payable once the assessment phase is over.

- People in the support group will get £89.50 (contribution based) or £102.10 (income based) after 13 weeks. This compares with existing claimants on long term Incapacity Benefit who receive £84.50, which can be increased by age additions to as much as £102.25.

- The new system will also exclude disabled people from entering higher education and receiving benefits. At present, disabled students can receive income support and 'disabled students' includes those entitled to Incapacity benefit. Under the new system only those disabled people who receive Disability Living Allowance will be entitled to claim income based ESA.

- CPAG is one of over 100 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

http://www.cpag.org.uk