Employment and support allowance (ESA) is a new benefit for people who are unable to work due to an illness or a disability. It has replaced incapacity benefit, incapacity benefit in youth, and income support paid on the basis of incapacity for new, unlinked, claims made on or after 27th October 2008.
ESA is an integrated benefit consisting of two parts: one a contributory benefit like incapacity benefit - paid on the basis of your national insurance contributions. The second part is means tested - i.e. affected by income or savings in the same way as income support.
ESA is paid at two different rates; a lower rate during a 13 week assessment period then at one of two higher rates depending on whether you are placed in the work-related activity group or the support group. If you qualify for income-related ESA you may also get additional money in the form of premiums if you are disabled and /or a carer.
If you are employed and off sick from work, you may get statutory sick pay from your employer for the first 28 weeks of illness. If you are still unable to work after 28 weeks, you can claim ESA (even if your employer continues to pay contractual sick pay). If your employer stops paying statutory sick pay during the first 28 weeks of your illness, for example because your contract of employment ends, you should claim ESA.
For more information, click on the link called statutory sick pay on the right hand side of the page.
If you take early retirement on ill-health grounds, you may still be due ESA on top of any works pension that you get.