10 December 2004
Incapacity benefit needs to be replaced with a new system of support that encourages people to return to the workforce, according to a centre-Left think-tank.
An Institute for Public Policy Research report, published on December 6, warned the government that it will fail to achieve its full employment and social justice goals unless incapacity benefit is overhauled.
The study, Fit for purpose: the reform of incapacity benefit, builds on previous IPPR work in this area. An earlier report, The missing million, showed that incapacity benefit is claimed for an average of eight years.
Claimants who have been receiving the benefit for two years are more likely to die or retire than return to employment, and the government is concerned both about the cost to the exchequer and to return more claimants to the workforce.
IPPR senior research fellow Kate Stanley said: 'Many claimants fear that taking steps towards employment may place their benefits at risk, and that returning to work will place any future claim at risk.'
Stanley also criticised the benefit for failing to provide adequate support for those people who were unable to work because of disability or long-term ill health.
'A new benefit structure is needed which promotes employment opportunity but also guarantees security and dignity for those who cannot work,' she said.
'The idea of reducing the number of claimants or time-limiting the benefit in order simply to make public spending savings is not an acceptable motive for reform. Such an approach could lead to entrenched poverty.'
The IPPR report recommended that a flat rate earnings replacement allowance be introduced, removing the incentive to move off Jobseeker's Allowance and on to incapacity benefit.
Claimants should also be required to negotiate an 'action agreement' with a trained personal adviser, detailing steps they are prepared to take to seek work or manage their condition.
PFdec2004
