Benefit changes affect thousands

The new incapacity benefit that this week replaced the old sickness and invalidity benefits will leave thousands of Britons without sufficient income if they are unable to work through sickness and injury, the life industry is warning.

Research conducted by Norwich Union suggests that 55,000 new claimants each year will fail the more stringent medical tests. The survey suggests that of those, 47 per cent will not take out private insurance. Some companies are developing lowcost, limited income protection plans.

The charity Help the Aged has warned that many older people are not claiming benefits. Its advice booklet is available free on 0800 289 404