Income and Benefits

Improving the Linking Rules

‘It would give me more confidence because the big fear is losing benefit if the job doesn’t work out. It is a very helpful change’

Service User, City and Hackney Mind

In his budget on 16 March 2005, Gordon Brown announced changes to the Incapacity Benefit (IB) Linking Rules. At the moment people claiming IB who move into work, but are unable to retain employment for more than 12 months, can return to their previous level of IB. From October 2006 the people that claim IB can try out work for a full two years, safe in the knowledge that they can return to their previous level of IB, if they reclaim within two years of their initial claim. Further still, those who do return to benefit can take up employment again as soon as they are able, rather than having to wait six months as is presently the case.

This is a major boost to people who want to get back to work. One of the major barriers that people report stops them returning to work is the loss of financial security that goes with giving up benefit and taking up a job. With this new change, all IB claimants including those with mental health problems, will gain the extra reassurance that, should their job not work out, they will not have to repeat the whole claiming process before returning to their previous level of benefit. With the risk of leaving benefit to try work far reduced, we may see many more people with mental health problems making the move into employment.

See p87 of this document

Involvement

This paper outlines the links between involvement and benefits. It provides discussion on involvement and outlines good practice in undertaking involvement. Click here to download.

Success on Hospital Downrating

Tucked away in Gordon Brown’s budget announcement in March 2006 was the fantastic news that the rules that mean people's benefits are cut to a miserly £15.90 a week after they have been classed as inpatients for more than a year are to be scrapped from April 2006. This means that thousands of people with mental health problems in hospital are going to be better off.

This is an issue that the National Social Inclusion Programme took up at the beginning of the 2005, adding to the work of Mind and others. This change means that since April 2006, people in long term hospitals will keep their full benefit entitlement. Having such a restricted income led many people to fall into debt, be unable to afford new clothes and not being able to pursue a hobby or activity, resulting in de-motivation and boredom. This in turn meant that these people experienced greater anxiety, feelings of isolation and exclusion from every day activities, and possible set backs in their recovery.

Although some benefits such as Disability Living Allowance are exempted from this change, we hope that all people in long term hospitals will benefit from significantly increased incomes and therefore a better chance to engage in activities we all take for granted.

See p115 of this document

People’s views on permitted work rules

Government is encouraging Britain’s workforce to gain new skills and undertake employment, enabling those without skills to enter training and endeavouring to engage those not currently involved in the labour market. However evidence has demonstrated that maintaining the current rules for Permitted Work for Incapacity benefit, Income Support and ESA claimants further the barriers it create in gaining employment to those affected by mental health problems. They are a group for whom trying a period of work first is often an important step for building confidence and gaining new skills, but maintaining benefit security is seen as an important issue.

The introduction of the ESA provides a unique opportunity to simplify the benefit system in relation to Permitted Work by creating equality for those who are on contributory and means tested elements of incapacity benefits and ESA. Because eventually all incapacity benefit and disability related income support recipients will move on to ESA this would greatly simplify the benefit system in relation to Permitted Work.

In order to further equality and choice, and thereby encourage social inclusion, for those affected by mental health problems it is necessary to promote flexibility in the benefit system in order to encourage more people to be pro-active and undertake activity that will assist a return to work. Those affected by mental health problems have the highest want to work rate of all those affected by disability and a greater use of Permitted Work would help more to achieve their work aspirations

Further information can be found here