Disability Benefits – A Guide (Part I)

There are many disability benefits available. If you’re finding it hard to know which disability benefits you can claim, then you need to read this; your ultimate disability benefits guide.

This is part 1 of the disability section of our guide to the UK welfare system. In this part we will mainly be looking at Employment and Support Allowance, Personal Independence Payment, Attendance Allowance and Universal Credit. These are the main benefits available to adults in the UK, who have an illness or a disability and are unable to work as a result. On top of that we will take a brief look at some miscellaneous benefits that disabled people in the UK can receive on top of the main benefits, such as VAT Relief, vehicle tax exemption and council tax reduction.

Part 2 of the disability section of our guide to the UK welfare system looks at disability benefits which will only be available to certain people, such as carers and parents who have a disabled child. You can read part 2 of this chapter here. It discusses Carer’s Allowance, Disability Living Allowance (for children under the age of 16), benefits if you were injured at work or have developed an illness because of your work, benefits for blind people and benefits for members of the armed forces.

There have been recent changes to disability benefits in the UK. Universal Credit has been introduced, new claimants over 16 no longer receive the Disability Living Allowance but qualify for the Personal Independence Payment instead and the eligibility criteria for Employment and Support Allowance has changed. If you are unable to work or if you can only work part-time because of a health condition or a disability, then you may be eligible for financial aid and disability benefits from the government. You could be eligible for:

• Employment & Support Allowance
• Personal Independence Payment
• Attendance Allowance
• Universal Credit
• Various other forms of financial help, such as exemption from Vehicle Tax, VAT Relief or Disabled Facilities Grants

Some people will be entitled to additional benefits, as explained in part 2 of this chapter.

In this article we will explore everything you need to know about these benefits. We will explain who is eligible for the different benefits available, how much people can expect to receive, how to apply, what is the maximum amount that people can receive and, also, how disability benefits have changed in recent years.

Employment & Support Allowance

What is Employment Support Allowance?

Employment & Support Allowance (ESA) is a disability benefit given to those who are ill and/or disabled and are either incapable of working or can only work a certain number of hours because of their health condition. You can apply for Employment and Support Allowance if you are unemployed, or if you are employed or self-employed for a limited number of hours per week. If you meet the criteria and you are able to prove that your disability affects your ability to work, then you will be able to make a claim.

Recently, some people who were receiving other benefits such as Income Support or Disability Living Allowance were transferred onto Employment and Support Allowance as part of the government’s overhaul of the benefits system.

The amount you receive depends on:

• The stage you are at in the assessment process
• Any pension you receive
• Your age
• Your ability to return to work

To qualify for Employment & Support Allowance, you must:

• Have a disability or health condition which affects the amount that you can work.
• Have worked as an employee or as self-employed within the last 3 years and made enough National Insurance contributions. If you have received National Insurance credits they will also count. If you are currently working, you will need to have made enough National Insurance contributions within the last 3 years.
• Be under the State Pension Age
• Not be getting Statutory Sick Pay or Jobseeker’s Allowance.
• Not be working more than 16 hours or earning more than £140 per week.

Like Jobseeker’s Allowance, there are two types of ESA. Contribution-based ESA is based on the Class 2 National Insurance payments you have paid while you can receive Income-based ESA on its own or to top up a low income if you work part-time and/or receive a low salary.

How to Claim Employment & Support Allowance

You can apply for ESA online. During the first part of your application, you will find out if you are eligible and then, afterwards, you can finalise your claim.

You will need to supply the following information with your application:

• Your National Insurance number.
• Your bank or building society account number (or those of someone you trust to take the payment for you).
• The date that your Statutory Sick Pay will end if you are getting it.
• Your GP’s name, address and phone number
• Details of any income that you have.

What Happens After you Apply?

After you make your application, your claim will be assessed. This normally takes 13 weeks and during this time, you will receive the assessment rate of payment. After your claim is assessed you will be placed in 1 of 2 groups, according to your ability to work. If you are deemed to be able to return to work in future, you will be put into the work-related activity group. If you’re unable to return to work, you’ll be put into the support group and will receive an extra allowance.

Most applicants will receive the standard amount, both during the assessment period and after they are placed in a group. Deductions are generally only made for people who receive a pension. If you receive a weekly pension of more than £85, before tax, you’ll get a reduced rate of ESA.

Those in the work-related activity group receive less than those in the support group. If you are placed in the support group, you may also be eligible for the enhanced disability premium or the severe disability premium.

Your Work Capability Assessment

During your assessment for Employment and Support Allowance, you must undergo a Work Capability Assessment. This will ascertain to what extent your disability or illness affects your ability to work. Normally, this involves completing a ‘capability for work questionnaire’ and a medical assessment with a healthcare professional from the Assessment Advisory Service. If you are in hospital or you have a terminal illness, you won’t need to have a Work Capability Assessment.

Personal Independence Payment

What is Personal Independence Payment?

The Personal Independence Payment is state financial aid given to anyone who has long-term ill-health or a disability and needs help with the extra costs associated with their condition. It is available to people who are in work or unemployed. The money is tax-free and paid into your bank account every four weeks.

You are assessed for Personal Independence Payment on two factors: ‘daily living’ (how easily you can carry out daily routines, such as cooking and cleaning) and ‘mobility’ (how independent you are in getting around, both in and outside of the home.) Payments are made as ‘parts’ for each factor. You might get payment for one or both parts.

To be eligible for Personal Independence Payment, you must:

• Be aged between 16 and the state pension age.
• Have a long-term health condition or disability, which causes difficulties in daily living and/or mobility.
• Have had these difficulties for at least three months and expect them to last for at least nine months more.
• Live in England, Scotland or Wales and meet other residency requirements. While the benefit is the same in Northern Ireland, the process for applying is slightly different.

Personal Independence Payment was introduced in 2012 to replace Disability Living Allowance. Disability Living Allowance is no longer being given to new claimants unless they are under the age of 16. Anyone who made a previous claim for Personal Independence Payment and was born on or before April 5th 1948 will continue to receive it indefinitely. Otherwise, people who are already receiving it will be asked, by the government, to move onto Personal Independence Payment. New claimants, over the age of 16, who would previously have qualified for Disability Living Allowance, should apply for Personal Independence Payment instead.

How to Apply for PIP

The easiest way to claim for Personal Independence Payment disability benefits in England, Wales and Scotland is to call the Department for Work & Pensions (DWP) on 0800 917 2222. You will be sent a form called ‘how your disability affects you’, as well as notes to help you fill it in. You should return this by post to the address on the form.

When making a claim, you will be expected to supply all your personal details, your doctor or health worker’s name and information about any time spent in a hospital or care home.

For people who are terminally ill, the application process is slightly easier and payments are usually received within 2 weeks. People who are not expected to live more than 6 months should make an application for Personal Independence Payment and ask their doctor or another healthcare professional to complete form DS1500. It is possible for someone else to make the claim on their behalf and the process is often smoother, with a face to face consultation rarely required.

The Assessment for Personal Independence Payment

An independent healthcare professional will assess you to determine how much you are affected by your condition. Rather than receiving a set amount for a specific condition, applicants are assessed according to how much their condition affects them personally. Most likely, you will need to have a face-to-face consultation. You will be sent a letter explaining why it is needed and where to go to receive it.

How you are Assessed

At your assessment, the healthcare professional will give you a score based on your level of disability. You will receive one score for the ‘daily living’ part of Personal Independence Payment and one for the ‘mobility’ part.

For each part you will be awarded points according to how able you are to carry out various activities, such as feeding yourself, and how much help you need in doing so. The higher the score, the more support you require. For each part, if you receive between 8 and 11 points, you will receive the standard amount and if you score 12 or higher, you will receive the enhanced amount.

The DWP will make a decision about whether you are eligible for Personal Independence Payment based on your assessment, your application and any other supporting evidence. You will usually be informed of their decision three weeks after your assessment. If you disagree with the results of your assessment, you are able to make a challenge.

Attendance Allowance

Once you reach the state pension age, you are no longer eligible to receive Personal Independence Payment. People who receive Personal Independence Payment and have reached the state pension age or new claimants over the state pension age should apply for Attendance Allowance instead. This disability benefit is provided to help people with their personal care if they are physically and/or mentally disabled. The amount that people receive depends on the level of care they require. If you qualify for Attendance Allowance, you may also become entitled to other disability benefits, ushc as extra Pension Credit, Housing Benefit or Council Tax reduction.

When you reach the pension age, you will also normally lose your eligibility for Employment and Support Allowance. Where Attendance Allowance replaces Personal Independence Payment for people over the state pension age, the state pension and other benefits those people receive can act as a replacement for Employment and Support Allowance.

To be eligible for Attendance Allowance, you must:

• Be over the state pension age and have a physical and/or mental disability.
• Have a disability which is severe enough to require help caring for yourself or supervision, to prevent you from being a danger to yourself or others.
• Have already needed help or supervision for at least 6 months. You will need to provide evidence of this, however, a medical diagnosis is not necessarily required.
• Be in Great Britain when you make your claim (with some exceptions)
• Have been in Great Britain for 2 of the last 3 years.
• Be a habitual resident of Great Britain and not subject to immigration control.

How to Claim Attendance Allowance

You should download the Attendance Allowance application form with its explanatory notes and send the completed application to the address given on the form. Alternatively, you can call the Attendance Allowance helpline on 0800 731 0122. Your allowance may be back-dated to the date of your claim. This is usually the date they received your form, or the date you called the enquiry line (as long as you return the form within six weeks.)

For people who are terminally ill, the application process is slightly easier and applications are usually processed more quickly (with a decision usually reached within 2 weeks). People who are not expected to live more than 6 months should make an application for Attendance Allowance and ask their doctor or another healthcare professional to complete form DS1500. It is possible for someone else to make the claim on their behalf and the process is often smoother, with a face to face consultation rarely required.

The Assessment for Attendance Allowance

You may be asked to go to an assessment with a healthcare professional. For Attendance Allowance, if you are able to prove that you have a qualifying physical and/or mental disability, you will normally only need to go for an assessment if it is unclear how much your disability affects you. They will send you a letter telling you where to go, why you need an assessment and what you should bring with you.

Universal Credit

If you qualify for Universal Credit and you have a disability or a health condition which prevents you from working, you can receive extra support on top of the standard allowance. Universal Credit is available for people who are over 18 and below the state pension age, with some exceptions for 16-17 year olds. You can get Universal Credit at the same time as getting Employment and Support Allowance and Personal Independence Payment. In many cases, if you are already receiving Employment and Support Allowance or Personal Independence Payment this will automatically qualify you for extra payments under Universal Credit.

Here’s what you need to know about Universal Credit:

• You may be eligible for Universal Credit if you are unemployed or on a low income (usually an income of less than £140 per week).
• You may also be eligible if you are between 18 and the state pension age (with some exceptions for 16-17 year olds), if you live in the UK and if you and your partner have less than £16,000 in savings between you.
• People who qualify for Universal Credit can receive up to £617.60 per month, as an individual claimant. On top of this, if they have a disability or a health condition, Under Universal Credit they can receive up to £416.19 as an extra payment to help cover the costs of their illness or disability.
• If you qualify for Employment and Support Allowance, Personal Independence Payment or other benefits because you are ill or disabled, you can receive these payments on top of your Universal Credit payment.
• Universal Credit can also provide support (of up to £198.31) for people who care for someone with an illness or a disability.

How to Apply for Universal Credit

Most people who are unemployed or work less than 16 hours per week will be able to receive Universal Credit. Your eligibility and the amount that you receive depends on your circumstances. You can use a benefits calculator to see if you are eligible and how much you could receive.

In order to claim, normally you have to be over 18 years of age, although in some circumstances 16 and 17 year olds can apply. Either you or your partner must be below the state pension age and you and your partner must have less than £16,000 in savings between you. If you have a partner and you both live in the same household, you will have to make a joint claim. If they are employed their earnings will be taken into consideration and this will affect the amount that you can claim.

Applications for Universal Credit can be made online. During your application you will need to provide:

• Your bank or building society account details (or those of someone you trust to take the payment).
• Your email address and proof of your identity.
• Information about your housing costs.
• Details of any income you receive and any savings that you have. If you have a partner and you live with them, you will have to provide details of their income and savings.
• Information about your disability or illness.
• Details of any other benefits you receive.

Applying for Extra Payments for Sickness or Disability

During your application for Universal Credit you will be asked to provide information about any illnesses or disabilities that you have. If you qualify for Universal Credit and you have any illnesses or disabilities, you may be entitled to receive extra payments on top of the standard monthly allowance.

If, during your application, the Department for Work and Pensions believe that your illness or disability may entitle you to extra payments, you will be asked to complete the Universal Credit capability for work questionnaire (form UC50). Following your submission of this form, you may be called in for a work capability assessment. As with other disability benefits, this may involve an appointment with a healthcare professional who will make an assessment of how much your disability limits your ability to work.

For people with a terminal illness, the process is usually easier and payments can be received more quickly. New claimants for Universal Credit, who have a terminal illness will be able to declare this in their application. Payments are usually received more quickly and another person will be able to make the claim on their behalf.

Outcome of your Application for Extra Sickness or Disability Payments

If you have already had a work capability assessment for another benefit, such as Employment and Support Allowance or Personal Independence Payment, you may not need to have another one. If this is the case, you may automatically begin to receive extra payments on top of your standard Universal Credit Allowance for your disability or illness. Many people who have previously been assessed as having limited capability for both work and work related activity will automatically qualify for extra payments. For people who have previously been assessed as having just limited capability for work, the process is slightly more complicated.

If you have not previously had a work capability assessment you will, most likely, be required to undergo a work capability assessment. This usually involves an assessment from a healthcare professional from the Assessment Advisory Service, who will assess how much your disability or illness affects your ability to work.

Following your work capability assessment, you will be placed in 1 of 3 groups. You will either be deemed to be fit for work, to have limited capability for work or to have limited capability for both work and work related activity.

If you are deemed to be fit for work, you will not receive any extra payments for sickness or disability. If you are deemed to have limited capability for work, normally you will not receive any extra payments for sickness or disability. This is because, although you cannot work, you are deemed as being capable of looking for work and beginning work in the future. If you are deemed to have limited capability for both work and work related activity, you will receive the maximum extra monthly allowance.

There is an exception made for people who were previously assessed as having just limited capability for work and have been receiving another benefit for this, since before 3rd April 2017. These people will receive a reduced extra monthly allowance for their sickness or disability.

How Much will I Receive?

Other Help for the Disabled in the UK

Did you realise that if you are disabled or have an illness, there are other types of support that you can receive on top of Personal Independence Payment, Attendance Allowance, Employment & Support Allowance and Universal Credit? Things like VAT relief, vehicle tax exemption and disabled facilities grants could ensure that you have a better quality of life and can afford to buy whatever would make your life easier, without resorting to a payday loan to cover the cost.

In England, you can receive a disabled facilities grant of up to £30,000 if you need to adapt your home in order to accommodate your disability. Many people will be entitled to free public transport and won’t have to pay VAT on the cost of payments they have to make because of their disability.

There are various ways the government can help you to cover the cost of transport, whether you use public transport or if you drive.

Community and Public Transport

Many disabled people will be entitled to a disabled person’s railcard and free bus passes. You may also be able to receive help from their local council through dial-a-ride or taxi schemes.

Vehicle Tax Exemption or Reduction

You can apply for exemption from paying vehicle tax if you have the enhanced mobility rate for Personal Independence Payment or have a 50% reduction if you have the standard mobility rate. Receiving other benefits such as Disability Living Allowance may also qualify you for exemption from paying vehicle tax. You can apply for this when you renew your vehicle tax. Make sure that you register the vehicle in the name of the disabled person or the name of their nominated driver. VAT relief for disabled people applies to adaptations made to vehicles in order to accomodate a person’s disability. If you need your vehicle adapted to suit your needs, you may not need to pay any VAT on this.

The Motability Scheme

The motability scheme exists to help people with an illness or disability to lease cars, powered wheelchairs and scooters. To be eligible you will need to be getting the enhanced rate of payment for the mobility component of Personal Independence Payment or another qualifying benefit.

Blue Badge Parking

People with severe walking difficulties are entitled to become blue badge holders, which provides a range of parking benefits.

Help with the Home and Housing

Disabled Facilities Grants

If you need to make adaptations to your home in order to accommodate your disability, you can receive a grant from the government in order to carry out the work. Any money received will have no affect on your other benefits. In England you can receive up to £30,000, in Wales you can receive up to £36,000 and in Northern Ireland you can receive up to £25,000. Disabled facilities grants are not available in Scotland, although other support is available.

Council Tax Reductions

People with an illness or disability may be entitled to a reduction in their council tax. Those with a severe mental impairment, such as dementia, are exempt from paying council tax and if they live with someone else they are entitled to a reduction in their council tax. People who have other disabilities may be entitled to a reduction in council tax if they live in a larger property than they would otherwise live in because of their disability. Under the Disabled Council Tax Band Reduction Scheme, those people will be able to have their council tax band reduced to the valuation band below the one they are currently in.

VAT Relief for the Disabled

Another disability benefit includes VAT relief on certain goods. Speciality items that you need because of your disability and domestic adaptations that you need may be exempt from VAT. Example items include stair lifts, alarms, adjustable beds, wheelchairs and so on. The cost of installation, maintenance and any accessories are also free of VAT.

Television License Discount

People who are registered blind or have a severe sight impairment are entitled to a 50% reduction in the cost of their TV license.

If you live in the UK, you are entitled to disability benefits if you are unable to work because of your disability. However, it can be difficult to know just what you are able to receive. At Cashfloat, we don’t want you to lose out on money that is rightfully yours and have to take loans with no guarantor just because you didn’t know to apply for your benefits! We hope you now have all the information you need about the disability benefits you can claim if you are disabled or have an illness and are unable to work as a result.

Chapter 6:
A Guide to Jobseeker’s Allowance

Chapter 7b:
Disability Benefits – Part II