This book chapter is part of the IFS Green Budget 2017. The subject of this chapter is the role of incapacity and disability benefits.
- Incapacity and disability benefits make up a large share of total working-age welfare spending.
- There has been a big shift from spending on incapacity benefits to spending on disability benefits over time.
- The government has committed to halve the ‘disability employment gap’.
Incapacity benefits – such as employment and support allowance (ESA) – are designed to provide financial support to those who cannot secure an income from employment due to disability or ill health.
Disability benefits – such as personal independence payment (PIP) – are designed to compensate for increased costs of living incurred as a result of having a disability or poor health.