Employment and support allowance from 2008

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    I’ve just started trying to work out some of the non LHA implications of the Welfare Reform Bill and all the associated secondary legislation.

    As I understand it, the new Employment and Support Allowance (ESA) is a direct replacement for both Incapacity Benefit AND Income Support paid on the basis of sickness. To achieve this, the ESA has both contributory and income related elements.

    My assumption, therefore, is that anyone getting the income related element of ESA will be treated in HB/CTB just like the IS/JSA(IB)/PCGC recipients – i.e. all income and capital disregarded and passported to maximum entitlement. But I can’t find anything in the Bill, draft regs or any of the associated guidance that actually says this. Can anyone shed any light on this?

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