Clause 4
Welfare Reform Bill
9:10 am
Jim Murphy (Minister of State (Work), Department for Work and Pensions; East Renfrewshire, Labour)
I shall seek, of course, to respond briefly so that we can move the proceedings on.
As we have discussed in Committee already, employment and support allowance is a different way in which to provide financial support to those whose medical condition has been assessed objectively and who are entitled therefore to the new employment and support allowance, either at the work-related activity rate or support group rate. The Committee has spoken about that at some length already.
I think that the hon. Gentleman has acknowledged in previous contributions that ESA cannot be compared directly to past systems, in respect of incapacity benefit. When a claimant meets the personal capability assessment threshold, the new benefit will allow a work-related activity component or support component to be payable after the initial 13-week assessment phase—on the fourteenth week of the claim. That is considerably earlier than in the current arrangements in which the higher benefit rates are payable after a year of incapacity. That is an important change and deserves to be highlighted. It will provide financial support for people away from work for longer.
The new structure will support better those for whom we aim to provide that financial support and encourage those with a limited capability for work to engage in work-related activity, where appropriate of course. Current customers will have their benefit levels protected at their existing rate, and new customers will have their ESA set above the long-term IB rate.
The hon. Gentleman is correct to say that the disability premium does not form part of the new ESA for reasons that we have discussed in Committee already. However, I can confirm that if those on ESA meet the qualifying conditions, they can qualify for the severe and enhanced disability premiums. That is how I understood his questions. The new system will be based on those criteria.
I hope that that explanation has reassured the hon. Gentleman about what people could still be entitled to and again confirmed the structure of the new benefit system in terms of the work-related activity and support groups. I have given the additional commitment that current customers will have their benefits protected and that new customers’ benefits will be paid above the current long-term IB rate.