HR must act now to protect staff against Disability Benefit changes

HR Directors must act now if they are to protect employees from upcoming changes to State Disability Benefits.

That’s according to Paul Avis, Marketing Director of Canada Life Group, who warns that changes announced by George Osborne this summer could see staff assessed as unfit to work receive just £3,801 a year.

From 6th April 2017, any applicants for Employment and Support Allowance (ESA) who are assessed as unfit for work (but capable of work related activity), will receive a lower level of state benefits, equivalent to Job Seekers Allowance, the benefit that follows Statutory Sick Pay when an employee is absent for over 28 weeks.

Avis explains how the changes could affect staff: “For anyone who has never considered what would happen to them, and their colleagues, when they are sick this is another wake up call. Around 250,000 people leave employment each year due to ill health. With a welfare bill estimated at £36billion, it has been estimated this simple reduction in the ESA benefit amount payable will save £100million in year one for the Government, rising to £640million in 2020-21.”