Tens of thousands lose their ESA as welfare reforms begin to bite

[Lighttouch]

Tens of thousands of disabled people have lost all of their out-of-work disability benefits this week, thanks to new rules brought in by the government through its controversial Welfare Reform Act.

The act introduced a new one-year time limit on claiming the contributory form of employment and support allowance (ESA) for those disabled people expected to move gradually towards work.

The new time limit was introduced retrospectively, which meant that claimants began to have their ESA removed on 30 April, even though the act only became law two months ago.

The Department for Work and Pensions (DWP) confirmed that it expects 40,000 people from this work-related activity group (WRAG) to lose all of their ESA this week, with a further 60,000 losing their contributory ESA but becoming eligible for at least some ESA on the grounds of low income.

Those disabled people with higher support needs, who have been placed in the ESA support group, are not affected by the time limit.

The one-year limit was one of the most controversial aspects of the act, with the disabled peer Lord [Colin] Low telling the government earlier this year that the measure would be “​not only unfair but downright cruel”​.

Disability Rights UK (DR UK) said this week that the time limit would increase the number of disabled people living in poverty, with some losing more than £​90 a week.

Neil Coyle, DR UK’​s director of policy and campaigns, said the new measure would only penalise disabled people who have worked in the past, as only those who have made national insurance contributions qualify for contributory ESA.

He called on the government to monitor the impact of the new time limit closely.

In its own equality impact assessment (EIA) of the measure last October, DWP conceded that the policy would affect about 700,000 people by 2015-16, with about 280,000 of them losing all of their ESA.

DWP estimates suggest that disabled people hitting the one-year time limit will lose an average £​32 per week for men, and £​43 for women.

A DWP spokeswoman said: “​The welfare system must support those with the most need.

“​ESA for people who could be expected to get back into work was never intended to be a long-term benefit and the time limit of one year strikes the best balance between recognising that some people need extra help to enter the workplace and that the taxpayer cannot afford to support people indefinitely who could return to employmen​t.”​

She added: “​Although a person’​s ESA has ended they may be entitled to other help such as housing benefit, council tax benefit or working tax credits.”​

She said DWP would monitor the impact of the time limit through its “​frontline operation”​ and by “​making sure people know what other benefits may be available to them”​.

She added: “​In terms of helping people, even if you are not eligible for benefit you can continue to claim national insurance credits and be eligible for all the support to help you get closer to the labour market, such as the Work Programme.”​

She said this was another way for DWP to “​stay in touch”​ with former claimants.

[mikeydt1]

Thousands have been made redundant and to cap it they are just chucking sick people on the dole then they have the nerve to start moaning about unemployment increasing, this is expected to increase for the next 5 years.

One way to save money but does not look good in the end for this country.

[Stepheninleeds]

I have never understood ESA at all. I know what it is, I know why it is paid, I know who is suppose to be able to claim it. I know what the two groups are & how they are suppose to work. I have read so much on ESA, on this Forum, in the news, on DWP website & other places. Yet I an still at a loss over ESA because of how it works in reality, or does not work. I really feel ESA is not fit for purpose because the rules on claiming it are ignored more than any other benefit.

[tinker]

As far as I can see it's all swings and roundabouts. Maggie & her minions started it after destroying our manufacturing base and shifting huge numbers of the unemployed onto incapacity benefit etc. Blair & then Brown wholeheartedly embraced this deliberate con-trick and now the ConDems want to tip things the other way.

[davewhit]

I have never understood ESA at all. I know what it is, I know why it is paid, I know who is suppose to be able to claim it. I know what the two groups are & how they are suppose to work. I have read so much on ESA, on this Forum, in the news, on DWP website & other places. Yet I an still at a loss over ESA because of how it works in reality, or does not work. I really feel ESA is not fit for purpose because the rules on claiming it are ignored more than any other benefit.

ESA replaced IB which is like ESA in some ways with IB you had an award for a length of time unless you got higher rate DLA care or was blind then the award was indef no medicals and you was left alone in my case I have been reviewed once in 17 years I then being now blind awarded IB indef under PCA exempt rules the one review in 17 years was I just filled in IB50 and my Dr a n IB113 no medical to move to exempt I just sent paperwork from hospital to them no other paperwork asked for.

In ESA you have sick people who they think will become fit for work and very sick people who wont for a longer period become fit for work if ever (support Group) on paper and in thoery the new system is better but as long as medicals are done in such a way that people keep needing to appeal and people who should be in support group are not then its a waste of space time and money.

The original theory on support was not far off dead and soon to be dead or people who would never get better but the law was wrote in such a way people have had to appeal and some in the group who if esa IR was NOT limited to just one year but say 3 would be ok in the none support group

[tinker]

Is there a difference in actual amount of benefit paid between ESA and support group ?
At present I get Income Support and Dla, do you still get IS with the ESAs?

[graemet]

you get NOTHING if your partner works more than 24 hours p/w or you have more than 16 grand in the bank

[Stepheninleeds]

Yes Dave, but as you know well ESA is a mess. Ans as we know, ESA had been changed to make it harder to get & to keep. It seems to me, that the idea of what ESA is not what you actually get.

I remember the day Maggie won Tinker, everyone said it was the worse thing that could happen to the country. That was before the fake smile of Blair.

[davewhit]

you get NOTHING if your partner works more than 24 hours p/w or you have more than 16 grand in the bank

If you have £16,000 in the bank do you need benefits ? the idea behind benefits is to help people in need ... I think the figure is too low say 20k and full time 35 hours then no benefits IMO of course

[Stepheninleeds]

I think it should be staggered & the reasons for the saving should be taken into account. With many benefits you start to lose them with smaller amounts of savings. However, what if you are saving for a new car, an extension to the home, etc? I would love to save to get a new kitchen as the Housing one is not great, but it would take me years to save, & as I did the money would then start to affect some of my benefits.