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| AIM This bill amounts to a radical shake-up of the welfare system, focusing mainly on incapacity benefit MAIN PROVISIONS | TIMETABLE Responsible department: Dept of Work and pensions Origin: House of Commons Introduced: 4 July 2006 Second reading: 24 July 2006 |
Creates a new benefit, the Employment and Support Allowance, which replaces exisiting Incapacity Benefit Assessment for eligibilty would take place over a longer period - probably 13 weeks - incl a medical test to establish capability for work and "work-related activity"The new benefit may require the recipient to participate in "work-related activity" - such as health assessments and interview workshops - if they are deemed to be capable of doing so, and have only a "limited capability for work" If the recipient is deemed to have a "limited capability for work-related activity" as well as work itself, they will receive benefits automaticallyBenefit for the above category of recipient will be increasedIncludes a number of welfare reforms e.g.benefit fraud, housing benefitNew regulations will not apply to current recipients of incapacity benefit BACKGROUND
Removes need for people to have a National Insurance contribution record to receive incapacity benefit, and for people taken ill whilst at work to have been off work for 28-weeksWork and Pensions Secretary John Hutton has addressed backbench fears that people on incapacity benefit may be forced back to work or be penalised for not taking part in "work-related activity", by leaving the clause on those activities open to debateConservatives have not yet revealed their policy on the subject, but have suggested "supported employment" as a route back to workThe Liberal Democrats are critical of the means-testing being introduced into the benefits system, but are generally supportive of government attempts to encourage people to return to work
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