What is an Incapacity Benefit?

An incapacity benefit is a type of governmental benefit that is offered to individuals that are considered to be of a working age, but are not able to work due to either some type of prolonged illness or a disability. Typically, individuals who are eligible for this type of benefit do not meet the qualifications for similar benefit programs operated by the government. This type of benefit is provided in a number of nations around the world, notably the United Kingdom and other nations that have historical or other ties with the UK.

While the exact structure of an incapacity benefit will vary from one nation to the next, most benefit programs of this type share a core group of characteristics. One has to do with determining the amount or level of benefit that an individual is eligible to receive. Typically, individuals who are expected to be disabled by illness for a less than six or seven months will receive a lower weekly allotment. Should there be indications that the individual will require up to a year to recover and re-enter the work force, the benefits will normally increase somewhat once the initial six to seven month phase is completed. For individuals who are still considered incapacitated after a full calendar year, a slightly higher benefit is provided.

An incapacity benefit normally goes into effect in after other available avenues have been exhausted. For example, if the individual has some type of insurance that provides regular payments during the recovery period, the amount of the benefit may be reduced or withheld until the insurance benefits are exhausted. In like manner, if the employer provides some sort of sick leave payment, that benefit must run out before the individual can file for and receive an incapacity benefit from the government.

The idea behind the incapacity benefit is to allow people recovering from severe illnesses to still manage to keep up with their debt obligations as they go through the recovery period. For people who are eventually determined to be permanently disabled, the benefits may be extended for an indefinite period of time, or the individual may be switched to one of several different social programs that are geared toward providing long-term support. Since the exact qualifications for participation this type of social support program vary from country to country, it is important to consult the department that manages the incapacity benefit and determine the current eligibility requirements, as well as determine if a different social program would be a better fit in a specific case.