Income Support v Incapacity Benefit

Enigmaman

I am in a bit of a quandary at the moment regarding benefits.

At the moment I am working but at some point I know I will have to stop because of my health.

If I leave it beyond next April I believe I will qualify for Incapacity Benefit, rather than Income Support plus Disability Premium.

I know IB is taxable, whereas IS is not. Moreover, in the short term I know I will receive less money because IB is paid at different rates depending on how long you have been sick.

On the other hand, if and when I start work again (which I am sure I will at some point, as Permitted Work) I get to keep much more of it under IB rules: up to £88.50 per week as opposed to £20 (I believe) with IS.

So the only advantage to IS would seem to be re: Permitted Work. Anyone else have experience of this situation?

dmg24

Unless you are a single parent, you do not get to choose which one you claim. If you have paid sufficient NI conts, you will be awarded IB. If you do not, you will be awarded IS on the grounds of Incapacity.

If you can be more specific about what else you need to know? x

Crabman

I've moved this thread to the Benefits & Tax Credits Board

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]!!!!!![/EMAIL].

healy

Enigmaman wrote: »

I am in a bit of a quandary at the moment regarding benefits.

At the moment I am working but at some point I know I will have to stop because of my health.

If I leave it beyond next April I believe I will qualify for Incapacity Benefit, rather than Income Support plus Disability Premium.

I know IB is taxable, whereas IS is not. Moreover, in the short term I know I will receive less money because IB is paid at different rates depending on how long you have been sick.

On the other hand, if and when I start work again (which I am sure I will at some point, as Permitted Work) I get to keep much more of it under IB rules: up to £88.50 per week as opposed to £20 (I believe) with IS.

So the only advantage to IS would seem to be re: Permitted Work. Anyone else have experience of this situation?

From October 27th new claims for IB will stop and if you claim in April it will have to be for the Employment and Support Allowance (ESA) if it is a new claim.

stazi

Unless you are self employed, you would need to apply for SSP from your employer first. SSP is payable for a max of 28 weeks.

Also- If I leave it beyond next April - what's relevant about next April?

Enigmaman

Next April is the point where I will have paid enough credits to qualify for IB - you have to have paid enough NI credits to qualify, I believe.

BTW I am self-employed so SSI does not come into it (and not a single parent either).

dmg24

What exactly is it that you need to know?

TBH most people do not have a choice as to when they go on to disability benefits - you can't really time when you become too ill to work.

healy

Enigmaman wrote: »

Next April is the point where I will have paid enough credits to qualify for IB - you have to have paid enough NI credits to qualify, I believe.

BTW I am self-employed so SSI does not come into it (and not a single parent either).

I dont know if you saw my post above but if you claim next April the benefit you claim will be ESA and not IB. ESA will be more difficult to claim.

stazi

Enigmaman

If you claim IB up to 26/10/08, or ESA on or after 27/10/08, the tax years used will be-
2008 -05/06 and 06/07
2009 -06/07 and 07/08.

The present tax year up to next April is the 08/09, and this tax year will not be used for ESA claims until Jan 2010.