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Incapacity Benefit and Severe Disablement Allowance

November 2008


Claiming Incapacity Benefit

Anyone wishing to claim Incapacity Benefit or who has a query regarding the benefits should go directly to the (External) JobCentrePlus website or ring 0800 055 668 (8.00 am to 6.00 pm Monday to Friday).

This report uses statistics provided by the Department for Work and Pensions Information Centre. The focus in this article is on results for the Lancashire area, but details for other parts of the country can be found by going to the (External) DWP website and using the Tabulation tool. The government site also contains full details of entitlement requirements for these two benefits in the A-Z list of services.

Table 1 Incapacity Benefit Rates
Under State Pension Age
Short-term lower rate
£63.75
Short-term higher rate
£75.40
Long-term basic rate
£84.50
Incapacity Age Addition
Incapacity Age Addition is paid to beneficiaries of long-term Incapacity Benefit who were aged under 45 on the day they became unable to work. This includes days you got Statutory Sick Pay.
Lower rate
£8.90
Higher rate
£17.75
Table 2 Severe Disablement Allowance Rates
Severe Disablement Allowance
Rate
£51.05
Age-Related Additions
You may be able to get an age-related addition depending on your age on the day you became unable to work.
Higher rate (under 40 when you became unable to work)
£17.75
Middle rate (40-49 when you became unable to work)
£11.40
Lower rate (50-59 when you became unable to work)
£5.70

Difference between Claimants and Beneficiaries

It is important to note that there are significant differences between the number of claimants and the number of beneficiaries of Incapacity Benefit, whereas for Severe Disablement Allowance the variation between the two is negligible. The differences between claimants and beneficiaries is shown down to the district level (see Table 3), whilst the information at ward level only measures the numbers of claimants.

Incapacity Benefit

Incapacity Benefit replaced Sickness Benefit and Invalidity Benefit in April 1995. It is paid to people who are assessed as being incapable of work and who meet certain contribution conditions.

There are three rates of Incapacity Benefit, as shown in Table 1. There are two short-term rates: the lower rate is paid for the first 28 weeks of sickness and the higher rate for weeks 29 to 52. The long-term rate applies to people who have been sick for more than a year. The higher short-term rate and the long-term rate are treated as taxable income. Please see the (External) DWP website for further details on entitlement.

Severe Disablement Allowance

From April 2001 there have been (External) no new claims to Severe Disablement Allowance . From this date, claimants under the age of 20 (or 25 if receiving training or education) may be entitled to Incapacity Benefit.

The National and Lancashire Perspectives

Table 3 details the caseload numbers for Incapacity Benefit and Severe Disablement Allowance for Great Britain, the North West, the Lancashire County Council 12-district area (excludes Blackburn with Darwen and Blackpool unitary authorities) and the districts. Nationally, the caseload was almost 2.66 million in February 2008, which represented a decline of -0.3% since February 2007. Over the same period, the North West saw a decrease of -2.5% to 404,180, whilst in the Lancashire County Council area, the number in February 2008 amounted to 59,200 or -2.9% less than a year earlier.

39,940 (67.4%) of the 59,200 claimants in Lancashire were beneficiaries in receipt of IB&SDA payments.

At the local area level, Blackpool unitary authority recorded by far the largest number (11,515) whilst Blackburn with Darwen recorded the second highest figure (9,940). At the other extreme, the rural Ribble Valley District recorded a caseload of just 1,795.

Table 3 Incapacity Benefit and Severe Disablement Allowance Caseload, February 2007 to February 2008
 
February 2008
February 2007
February 2007 to February 2008
Weekly Benefit for Those Receiving Payment (£)
Caseload (Total Claimants)
Claimants Not Receiving Payment
Claimants Receiving Payment (Beneficiaries)
Caseload (Total Claimants)
Change in Caseload (%) (1)
 
 
 
 
 
 
 
Burnley
88.11
6,540
2,440
4,100
6,730

Chorley
85.70
4,590
1,200
3,390
4,660

Fylde
85.48
3,100
900
2,210
3,150

Hyndburn
87.14
5,480
1,900
3,580
5,760

Lancaster
85.97
6,550
2,270
4,280
6,780

Pendle
89.02
5,485
2,000
3,470
5,660

Preston
86.90
7,690
3,160
4,540
7,830

Ribble Valley
85.01
1,795
400
1,390
1,820

Rossendale
87.27
3,760
1,190
2,570
3,840

South Ribble
85.67
4,100
930
3,150
4,220

West Lancashire
87.00
5,175
1,490
3,710
5,470

Wyre
86.63
4,935
1,410
3,550
5,030

 
 
 
 
 
 
 
Lancashire County (NUTS-3)
 
59,200
19,260
39,940
60,970
-2.9
 
 
 
 
 
 
 
Blackburn with Darwen
88.08
9,940
4,210
5,730
9,970

Blackpool
86.20
11,515
4,960
6,550
11,480

 
 
 
 
 
 
 
North West
 
404,180
151,640
252,540
414,350
-2.5
Great Britain
 
2,659,650
1,004,640
1,655,010
2,704,100
-0.3
Note (1) Percentage change figures at the district level are considered to be statistically too unreliable.
Source Department for Work and Pensions
Figure 1 Incapacity Benefit and Severe Disablement Allowance Claimants, February 2000 to February 2008

Graph showing how the relative numbers of incapacity benefit and severe disablement allowance claimants in Lancashire County, the North West and Great Britain have changed from February 2000 to February 2008 - see text for details Source Department for Work and Pensions

Time Series Analysis of Benefits

Over time there are changes to the types of benefits, qualifying criteria and initiatives that can affect the number of claimants. It is possible that changes may be in part due to factors that cannot easily be distinguished without an in-depth knowledge of particular benefits.

In the near future for example, the introduction of changes in benefit regimes for Lone Parents and Incapacity Benefits claimants will generate an impact on the number of people claiming these benefits in Lancashire as they are introduced for new claimants in the Autumn of 2008 and for existing claimants in 2009. Jobcentre Plus guidance suggests that this will reduce the numbers of people claiming these benefits by around 12% in each case, but that this will result in a similar increase in Jobseeker Allowance claimants.

It is likely to be difficult to quantify the actual impact of a specific change at a time of contraction in the overall state of the economy.

From 27 October 2008, the Employment and Support Allowance replaces IB&SDA for new claimants.

Given the economic significance attached to getting people off benefits and back in to work, it is worth considering the number of claimants to these two benefits over a longer time period than just one year - even after accepting that some of the change may be the result of a variety of administrative or other factors. Figure 1 presents yearly results from February 2000 to February 2008. The numbers for February 2000 are given a value of 100 and subsequent years are measured in relation to the base figure. Initially, there was a pattern of increases at the county and national levels, but all three rates recorded a noticeable downward trend from 2004 onwards.

In the year from February 2007 to February 2008 the percentage reduction in claimants in the Lancashire County Council area has been more pronounced than the regional and national rates of decline.

Leaving the Unemployment Claimant Count to Receive Incapacity Benefit

Lancashire Profile contains a table that details the reasons people give for leaving the unemployment claimant count . One of the reasons is to claim Incapacity Benefit instead. The results for July 2008 reveal that for the broader 14-authority Lancashire area that includes Blackburn with Darwen and Blackpool unitary authorities, only 225 of the 5,165 that left the claimant count in that particular month stated that they were leaving to claim Incapacity Benefit. Given the significant numbers in the 'not known' and 'failed to sign' categories, it is likely that the actual figure may be higher.

Ward Level Data

Table 4 shows the 25 wards in the Lancashire NUTS-2 area with the highest percentage of working age population claiming Incapacity Benefit and Severe Disablement Allowance. Two wards in Blackpool with over 22%, Claremont and Bloomfield, recorded more than 1,000 claimants each – figures noticeably in excess of any of the other wards in the county. Twelve wards in the unitary authorities of Blackburn with Darwen and Blackpool had 15.7% or more IB&SDA claimants, along with13 wards in the Lancashire County Council area.

Within the Lancashire County Council area, which excludes the two unitary authorities, Ribbleton Ward in Preston recorded the highest number of total claimants with 745. The highest percentage rate was in Bank Hall Ward, Burnley with 19.7%.

Table 4 Incapacity Benefit and Severe Disablement Allowance Claimants by Ward, February 2008 (the 25 Wards with the Highest Rates of Claimants)
Rank
Local Authority
Ward
Total Claimants
Claimants as Percentage of Working-Age Population
 
 
 
 
 
1
Blackpool
Claremont
1,100
23.3
2
Blackpool
Bloomfield
1,065
22.4
3
Blackburn with Darwen
Wensley Fold
820
21.7
4
Blackpool
Park
875
21.1
5
Blackburn with Darwen
Shadsworth with Whitebirk
935
20.9
6
Burnley
Bank Hall
655
19.7
7
Blackpool
Brunswick
815
18.3
8
Hyndburn
Central
480
18.1
9
Hyndburn
Spring Hill
525
17.4
10
Pendle
Waterside
535
17.3
11
Preston
Ribbleton
745
17.2
12
Pendle
Southfield
520
16.9
13
Blackpool
Talbot
765
16.8
14
Burnley
Trinity
600
16.8
15
Blackburn with Darwen
Higher Croft
685
16.6
16
Wyre
Pharos
550
16.6
17
Pendle
Bradley
635
16.6
18
Blackburn with Darwen
Sudell
665
16.6
19
Hyndburn
Barnfield
455
16.6
20
Blackburn with Darwen
Audley
785
16.4
21
Blackburn with Darwen
Earcroft
395
16.3
22
Burnley
Daneshouse with Stoneyholme
550
16.1
23
Preston
St Matthew's
645
15.9
24
Blackburn with Darwen
Mill Hill
615
15.8
25
Preston
Town Centre
700
15.7
Source Department for Work and Pensions

The distribution of claimants across wards in the broader Lancashire area is shown in Figure 2. Concentrations of wards with high percentages of working age people claiming IB and SDA are particularly apparent in central Blackpool, Blackburn and Burnley. Wards in Preston, Accrington, Nelson, Colne and Fleetwood also experienced high rates. The Lancashire NUTS-2 average was 9.5%.

Figure 2 Incapacity Benefit and Severe Disablement Allowance Claims, Lancashire Wards, February 2008

Map showing the incapacity benefit and severe disablement allowance claim rates for Lancashire's wards - see text for details Source Department for Work and Pensions

This page was compiled by Ann Weaver .

All enquiries from the media should be sent to Corporate.Communications@lancashire.gov.uk .

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