Moving incapacity benefit (IB) claimants on to employment and support allowance (ESA) may result in a loss of income for a number of people, it has been claimed.
The impact of these changes has not been fully assessed, according to the Low Income Tax Reforms Group (LITRG).
Since employment and support allowance was introduced in 2008, no new claims for IB have been permitted.
The LITRG noted that it felt the government had not completely understood the impact that this would have on the most disadvantaged members of the UK.
Currently, the tax-free IB is excluded from income calculation for tax credits, but when it is replaced by taxable ESA the benefit will be included in the calculation - with tax credits being taken away at the rate of 39p in the pound.
HM Revenue & Customs was recently criticised over the poor quality of service given to pensioners.
Financial News
LITRG: New rules on incapacity benefit are unfair
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