Little-known benefit could boost workers’ income over ‘accidents’ | Personal Finance | Finance

The Reduced Earnings Allowance is a lesser-known benefit that offers up to £4,686.24 annually. It’s designed for people who’ve had to reduce their work hours or income due to illness or disability.

To qualify, your level of disability can be as low as 1%, but it must prevent you from returning to your usual job, resulting in lower earnings. You also need to show that you’re unable to take on other work that would match the income level of your previous role.

Your disability or illness must have occurred before October 1, 1990. For work-related incidents causing disability or illness after this date, the Industrial Injuries Disablement Benefit applies. In certain cases, you may be eligible for both benefits.

The Reduced Earnings Allowance has a weekly cap of £90.12. The exact amount you receive depends on your earnings from your regular employment.

If you’ve had more than one accident or prescribed disease, you can claim for each incident.

Upon reaching state pension age and leaving regular employment, the Reduced Earnings Allowance is replaced by the Retirement Allowance.

It’s crucial to remember that both the Reduced Earnings Allowance and Industrial Injuries Disablement Benefit can impact your eligibility for other income-related benefits you or your partner receives.

To claim the benefit, you’ll need to reach out to the Barnsley Industrial Injuries Disablement Benefit centre to obtain a form. This must be completed and sent back via post.

The form comes with guidance on how to fill it in and where to send it once completed. More details about the Reduced Earnings Allowance can be found on the Gov.uk website.

Industrial Injuries Disablement Benefit, however, has a few more eligibility requirements.

The work-related accident must have taken place in England, Scotland or Wales but it also extends to individuals who were participating in approved employment training schemes or courses.

The amount you receive from this benefit is dependent on the severity of your disability resulting from the industrial incident. A medical adviser will evaluate the level of disability affecting you on a scale of 1% to 100%.

Typically, you must score at least 14% to qualify for Industrial Injuries Disablement Benefit. The higher your percentage, the larger the benefit payment, up to a weekly maximum of £225.30.

To apply for this benefit, you’ll need to download, print and post the relevant form, which can be located on the Gov.uk website or requested from the Barnsley Industrial Injuries Disablement Benefit (IIDB) Centre.