What is Incapacity Benefit?
Incapacity Benefit is money paid by the government to people who are unable to work because of injury, illness or disability.
The amount received varies according to the length of time a person is claiming for, their age, and any other income they may have (including pensions and certain other benefits). The maximum rate of long-term Incapacity Benefit is £94.25 per week.
After January 2011, no new claims were taken for Incapacity Benefit, and individuals were able to claim Employment and Support Allowance instead. People claiming Incapacity Benefit before that date are able to continue doing so, but all cases will be reviewed before 2014.
Incapacity Benefit is not taxable for the first 28 weeks, but any Incapacity Benefit currently received after the first 28 weeks counts as taxable income.