Permitted work, ‘passporting’ and Employment and Support Allowance: a fundamental flaw

The Employment and Support Allowance (ESA), introduced in October 2008, replaces Incapacity Benefit, and Income Support through illness or disability, for new claimants. This article explores a key problem with the new benefit: changes in the permitted work rules between Income Support and income-related ESA mean that a single person with no other income or savings who has paid National Insurance contributions could be more than £60 per week worse off than someone in a similar position who has not paid contributions. The problem is outlined below, and potential solutions are proposed.