Govt penalises thousands on ESA

clock • 1 min read

More than 11,000 benefit sanctions were imposed on Employment and Support Allowance (ESA) claimants between June last year and the end of May.

With a quarter (2,790) of the 11,530 sanctioned claims being repeat offences, it means a total of 3% of eligible claims were cut.

The average cut in benefit was £19.25 per week out of a possible maximum of £26.75.

ESA claimants face their benefits being cut for a variety of reasons, often connected with attending work focused interviews once they have been placed into the work-related activity group.

At present just 7% of claimants are placed in the support group, where they are not expected to undertake any work activity, while 17% are put into the work-related activity group.

These penalties most commonly affect the work-related activity component of the ESA weekly benefit payment.

Statistics from the Department of Work and Pensions (DWP) show that of the 11,530 sanctions imposed 1st June 2010 and 31st May 2011:

  • 6,160 (53%) had a 50% reduction in their work-related activity component applied,
  • 5,370 (47%) had a 100% reduction in their work-related activity component applied.

They also revealed that mental and behavioural disorder claimants were most likely to be penalised (3.5% of those claiming) while those suffering diseases of the circulatory or respiratory system (2.3%) were least likely to be punished.

More on Income Protection

Profile of an IP customer: learnings from 2024

Profile of an IP customer: learnings from 2024

Panel with the IPTF and IRESS

Cameron Roberts
clock 13 December 2024 • 1 min read
Accident victims living with long-term health issues

Accident victims living with long-term health issues

"Younger people are particularly vulnerable"

Jaskeet Briah
clock 05 December 2024 • 3 min read
Partner Insight: New Age of Income Protection

Partner Insight: New Age of Income Protection

From Love Island to loving income protection, for Gen Z income protection should be "100% my type on paper", however, also like on Love Island, this does not guarantee compatibility.

Julie Thompson, Protection Proposition Manager, Scottish Widows.
clock 03 December 2024 • 6 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read