“Peverse Incentives” For ESA Claimants Axed

Same Difference

With many thanks to Benefits And Work.

Today’s budget does not include any cuts, taxes or uprating freezes for personal independence payment (PIP) or disability living allowance (DLA), much to the relief of disabled claimants. However, employment and support allowance claimants have been hit hard, with the ending of the ‘perverse incentive’ of the work-related activity component.

No cuts for disability benefits
There had been fears that DLA and PIP would be made subject to income tax or frozen in today’s budget. Happily, neither of those things happened.

However, we won’t be certain that no changes to PIP qualifying criteria are being made until we see tomorrow’s ‘Welfare Reform and Work Bill’.

ESA uprating freeze
The support component of ESA will not be frozen from April 2016.

But the ESA basic allowance of £73.10 (for people aged 25 and over) and the work-related activity component of £29.05 will both be…

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