Disability benefits

Disability benefits are funds provided from public or private sources to a person who is ill or who has a disability.

United Kingdom

In the United Kingdom disability benefits are covered by Department for Work and Pensions. There are numerous benefits available for people of different ages and different personal circumstances

Children under 16

• Disability Living Allowance is paid to children under 16 who have some degree of care and/or mobility needs. In the past, it was available to adults aged 65 or under, but claims for DLA for adults are now being phased out and transferred to PIP.

Working-Age Adults (aged 16-65)

• Employment and Support Allowance is paid to people who are unable to work because of their disability.
• Personal Independence Payment is paid to people who have some degree of care and/or mobility needs.
• Universal Credit is currently being rolled out, with the intention of replacing Employment Support Allowance, as well as a number of other benefits claimed by both disabled and non-disabled people.
• Working Tax Credit Disability component is paid to people with a disability work 16 hours a week or more, who pass the Work Disadvantage Test and claim another disability benefit.

Industrial Disability Benefits

• Constant Attendance Allowance is paid to people who receive Industrial Injuries Disablement Benefit and who are classed as 100% disabled.
• Industrial Injuries Disablement Benefit is paid to people who have become disabled as a result of an illness or injury caused by work or while completing vocational training. To be eligible, the claimant is assessed to ascertain the level of disability they have, as a percentage. The claimant needs to be at least 14% disabled to receive the benefit.
• Reduced Earnings Allowance is paid to people who work but have reduced earnings as a result of accident or illness caused by their work. It is only available if the accident or illness started before October 1, 1990.

Carers

• Carer's Allowance is paid to people who care for someone who receives the care component of PIP or the higher or middle rate care components of DLA. The carer must spend at least 35 hours a week caring for the person and the carer must not earn more than £120 a week
• Income support is available to people on Carer's Allowance who work less than 16 hours a week and are on a low income.

Veterans

• Armed Forces Independence Payment is paid to former members of the armed forces who were left disabled after being injured while in the armed services after 6 April 2005.
• War Disablement Pension is paid to people who became disabled as a result of an injury or illness that occurred or was aggravated as a result of serving for the armed services. The injury must have occurred before 6 April 2005.

United States

In the United States, disability benefits for most Americans are covered and paid for by the Social Security Administration (a government agency). There are two main programs administered by the SSA; Social Security Disability Insurance program (SSDI) and the Supplemental Security Income (SSI) program. There is also a specific program for children with disabilities.

Social Security Disability Insurance provides benefits to individuals who have worked and paid Social Security taxes. Insurance eligibility is dependent upon Quarters of Coverage (QCs), commonly called "work credits". These are allotted based on the earnings for each quarter the individual has worked. Work credits ensure coverage until they "expire" on the individual's Date Last Insured (DLI). Medical evidence must prove that the onset of disability was before their DLI to receive benefits. SSDI recipients become eligible for Medicare after two years of SSDI eligibility.

Supplemental Security Income (SSI) provides benefits to low-income individuals who are disabled and unable to work, regardless of whether they have worked in the past. Individuals must meet income and resource requirements. SSI also provides benefits to children under 18 years old, who are disabled and whose parents or guardians have limited income. The monthly SSI payment is calculated based upon the Federal Benefit Rate (FBR), and the individual's income. Most SSI recipients are immediately eligible for Medicaid and Supplemental Nutrition Assistance Program (SNAP), though program requirements vary by state.

Some individuals are eligible for both SSI and SSDI.

Canada

In Canada, there are a variety of public Disability Benefit Programs. The largest programs are the Canada Pension Plan and Quebec Pension Plan disability benefits, and provincial workers' compensation and social assistance programs. Some individuals, in addition, have private disability insurance coverage, purchased either individually, or through an employer. Different programs use different rules to decide whether or not someone is eligible for benefits.

Canada Pension Plan (CPP) / Quebec Pension Plan (QPP) Disability Benefits

To access Canada Pension Plan or the Quebec Pension Plan disability benefits, an individual needs to have a disability that is "severe and prolonged", and which prevents them from working on a regular basis. As of 2018, CPP disability benefits are a minimum of $485.20 a month. Individuals who have contributed more to CPP or QPP during their working career receive higher benefits. The average monthly CPP disability benefit was $971.23 in 2018 and the maximum monthly amount was $1,335.83.

People receiving CPP disability benefits may earn up to $5,500 a year without losing their benefits. Benefits stop when an individual has the ability to work regularly, or is no longer disabled. When an individual reaches the age of 65, CPP Disability Benefits are replaced by a Retirement Pension.

Employment Insurance Sickness Benefit (EI Insurance)

Employment Insurance is a benefit plan that offers temporary financial assistance to those individuals who cannot work due to sickness, injury, or quarantine.

To be eligible to receive EI sickness benefits:

• The individual's earnings have been reduced by at least 60%
• He/She is employed in insurable employment
• A minimum of 600 hours has been accumulated in the qualifying period

People are only eligible for these benefits if they are unable to work due to their sickness, injury, or quarantine, but would be able to work otherwise. To receive EI sickness benefit a medical certificate signed by the doctor is required.

To qualify for EI you must have a required amount of insurable employment hours, which are used to calculate your benefit period, these insurable employment hours must be accumulated throughout the qualifying period.

The qualifying period:

• 52 week period before the EI claim date
• Start date of previous EI benefit period to the start of the new date

It is important to note that each individual's case is different and requirements may vary from case to case. But a general way of calculating EI benefits is 55% of the average insurable weekly earnings. The maximum amount you can be eligible for as of January 1, 2018 is $51,700. Typically EI sickness benefits can only be paid for up to 15 weeks, but can vary depending on how long the individual is unable to work.

Weekly EI sick benefits are calculated based on income before it has been deducted during the individuals “best weeks”. Best weeks are the weeks in which the individual earned the most amount, including any tips and commissions, the best weeks are chosen out of the qualifying period.

In Canada areas with high rates of unemployment will use the best 14 weeks, and in areas with low unemployment rates will use the best 35 weeks.