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Sick Benefit Claims

posted: 27/10/2010

Claims made yesterday by the Department for Work and Pensions that three-quarters of the people applying for the new Employment and Support Allowance (ESA) are fit for work are disputed by leading charities.

The official figures were published as the Government continues its plans to reassess everyone on the old style incapacity benefit (IB), which began in Burnley this month and will cover the rest of the country from early next year.
 

Claims distort reality

Charities say the department is distorting reality. A high proportion of these decisions are wrong and almost 40% of people who appeal win. Citizens Advice Bureau has published three detailed reports on serious failings in the system. We know that many people with HIV are being refused wrongly and winning their appeals. We know that NAT are producing a report on the experience of people with HIV with the new benefit and system.

Citizens Advice argues that instead of improving the lives of ill and disabled people, the “deeply flawed” benefit has brought misery for thousands.

The Department recently ordered an independent review of the assessment process because of the widespread problems and complaints.

In last week’s spending review Chancellor George Osborne announced further benefit cuts: most people will only be allowed to claim ESA for a maximum of a year. It plans to cut the benefit bill by at least £18bn.
 

New sick benefit is 'unfit'

Scotland’s acting chief executive at Citizens Advice, Susan McPhee said: “We said last year that ESA was unfit for purpose and we see no reason to change that view. We are still seeing case after case where people are being found fit for work even though their illness or disability restricts them from any type of work. ESA isn’t working for the most vulnerable. We need to protect people in times of suffering, not cause them further hardship.”
 

ESA has forced thousands of vulnerable people with conditions such as cancer, schizophrenia, HIV and Parkinson’s disease back into the job market after being declared fit for work, despite medical evidence from GPs and consultants saying different.
 

Citizens Advice Bureau evidence shows that the system isn’t working

For new ESA claims from October 2008 to February 2010, the department for Work and Pensions says that the three quarters of claims that were refused and unsuccessful were made up of:

  • Support Group (people who cannot work now or in the foreseeable future and need unconditional support) – the department nonetheless decided 6% were fit for work
  • Work Related Activity Group (people who cannot work now but with the right help could work in the foreseeable future) – the department nonetheless decided 15% were fit for work
  • Fit for Work - the department decided 39% of ordinary ESA claimants were fit for work and refused the claim for ESA. People can appeal and claim Job Seekers Allowance. 
  • Claim closed before assessment complete, or assessment still in process: 39%

The department is fiddling the figures to say that claims where the assessment is still in progress are among the three quarters of the claims that were refused or abandoned. Any claim still being assessed hasn't been decided yet, it is not refused, abandoned or unsuccessful. Undecided claims could be almost 39% of the 75% that the department's press release claims 'are being found fit for work after undergoing the Work Capability Assessment or stop their claim before they complete their medical assessment'. The true figure for claims that failed might be as low as 36%.

Whatever the rate of refused claims, almost 40% of people who appeal the decision, win. That is a dreadful rate of expensive administrative failure.
 

Reviewing the system

Employment Minister Chris Grayling said:
" I am determined that we get the medical assessment right, which is why Professor Malcolm Harrington is undertaking an independent review in consultation with a number of charities representing disabled people and those with mental health issues. I am more than happy to take onboard any serious suggestions for changing the assessment as I want it to be as near to perfect as we can be. This is not about pushing the sick and disabled into jobs but giving those that can work the help to do so and those that can't more, not less, support."
 

Churches: Don’t blame the poor
Meanwhile, three of Britain's churches accused the chancellor, George Osborne, of exaggerating the scale of benefit fraud in last week's spending review speech, pointing out that official figures were lower than the £5bn claimed by Osborne. The president of the Methodist Conference, Alison Tomlin, said: "Exaggerating benefit fraud points the finger of blame at the poor. Let us be clear this recession was not caused by the poor, those on benefits, or even benefit cheats."

Sources
Guardian Scottish Herald 
Department for Work and Pensions Press Release


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