Will I Be Able To Claim Fewer Benefits If I Resign Due to Ill health?

This blog answers the question “Will I Be Able To Claim Fewer Benefits If I Resign Due To Ill Health?” Your unemployment benefits will be affected following your resignation due to health reasons but other benefits will be paid out normally. This blog contains a list of diseases covered by the Industrial Injuries Disablement Benefit.

Will I Be Able To Claim Fewer Benefits If I Resign Due to Ill health?

Your eligibility for claiming benefits after resigning from a job due to ill health depends on the exact health reason and its severity. A serious accident or injury sustained at work could qualify as a plausible reason for still letting you claim benefits such as the Disability Living Allowance or Personal Independence Payment.

You could lose your benefits for a period of 3 months if your reasons for resigning due to ill health are considered unsatisfactory by the Department of Work and Pensions. If you don’t have a serious illness, terminal disease, or long lasting ailment you could suffer the loss of benefits. Your income level will also be assessed when awarding benefits.

If your income is considered as low enough you will be able to claim the same level of benefits as before. The Jobseeker’s Allowance or Employment and the Employment and Support Allowance might just be affected by your efforts to look for another job. If you are actively searching for your next job after resigning your previous one due to ill health, unemployment benefits will still be paid out to you.

Will my eligibility for benefits suffer if I resign from my job?

You might be able to claim some benefits until you get a new job. Your eligibility for claiming these benefits depends on your income level and the exact details of how and why you lost your job. If you resigned from your job, you could lose benefits for upto a period of 3 months unless you actually had a valid reason such as an ill health condition which prevents you from working at the same efficiency level as before.

This is known as a “sanction”. To avoid this situation you need to provide the Department of Work and Pensions with an acceptable reason for resigning such as:

  • You received a wage below the minimum wage level
  • You had a zero hour contract
  • You felt unsafe at work due to regular attempts of harassment and intimidation
  • You did not feel safe in the working conditions because they failed to conform to the necessary safety standards.

Can my employer prevent me from talking to my former colleagues when I am resigning?

Yes, your employer does have the right to bar you from meeting your former colleagues once you have resigned. You certainly cannot enter the office building just to meet with your ex colleagues and your entitlement to enter the organisation ends when you resign your post.

Your boss cannot stop you from going to your former working mates private residence or meeting them at a hotel or shopping mall.

You have a duty of trust to your former employer under your contract as well. This includes not disclosing confidential information or trade secrets to competitors. Also if you have signed a settlement agreement, it is binding on you not to disclose how much compensation you have received.

What happens to my work pension when I retire early due to health reasons?

If you retire early due to health reasons you can withdraw a fixed amount of money from an occupational pension. Some private pension plans grant you early access to your pension plan if it is obvious that you are unfit to return to work due to health reasons.

If you are suffering from a terminal illness and your life expectancy is (proven to be) less than a year, you might be permitted to withdraw your entire pension amount in a lump sum payment. You have to provide medical evidence to back up your case

What are the health reasons for which I can take an early retirement?

To avail the early retirement option you must :

  • Have made National Insurance Contributions over the past 2 years
  • Have resigned from your job after the payment of an illness pension or due to injury. You lost the job because you couldn’t perform your duties after the accident or illness (Tier 1 pension)
  • You are not able to maintain your work efficiency and output standards owing to the accident or illness.
  • You are below the regular retirement age of the ill health retirement pension which was 60 years for schemes before 2015 and 65 years after 2015

What are the eligibility criteria for ill health retirement under the NHS pension scheme?

The eligibility requirements for obtaining ill health retirement under the NHS pension scheme includes:

  • You are currently a member of the NHS pension scheme and have also been a member for at least 2 years
  • Making an application for ill health retirement before reaching the required age limit
  • You are backing your ill health retirement application with strong medical evidence 
  • You are making an ill health retirement application while still being employed.
  • You are suffering from a long term health ailment which currently affects and will also continue to affect your performance at work in the future.

There are 2 levels of the NHS ill health pension scheme. The first level indicates that you are unable to effectively perform the tasks of your job due to a chronic disease. The second level requires medical proof of you being completely unfit to work now (or at any time in the future)

The amount of your pension payment depends on whether you are medically considered as completely unfit for work (or not).

Is It Better To Wait To Be Made Redundant Than To Resign Due to Ill Health?

It is preferable to wait to be made redundant, if you have worked for more than 2 years for your employer. If you have just a few months remaining for the 2 year limit, you can choose not to take your resignation if your health permits you to do this.

You will also receive severance pay after your dismissal from your employer. Another benefit of staying with the same employer is being offered a new job. This new task might have work requirements different from your current working requirements. But if you are too ill to continue on the job for even a month, and have a terminal illness it is advisable to resign immediately.

Can I Get the Industrial Injuries Disablement Benefit after resigning due to ill health?

Yes, of course you can even claim the Industrial Injuries Disablement Benefit even while you are working, following an injury or illness. You should only choose to resign if your health condition prevents you from performing your job with the same efficiency or does not allow you to perform the tasks at all.The Industrial Injuries Disablement Benefit is a weekly benefits payment for compensating disability or illness suffered due to a mishap at work (or an exposure to a disease at your workplace).

 The disability or illness suffered by a work related accident or the disease contracted while working can also occur at an approved employment training course.

To be eligible for claiming the Industrial Injuries Disablement Benefit you need to verify the following information:

  • You were working when the accident or event occured
  • You were attending an approved employment training course at the time the event occurred
  • The work accident leading to your illness or disability took place in England,Wales or Scotland

You can also claim the Industrial Injuries Disablement Benefit for suffering from a disease or contracting a disease at your workplace or employment training scheme. The following list of 70 diseases can be verified for claiming this benefit payment:

  • Asthma
  • Chronic Bronchitis or Emphysema
  • Deafness
  • Pneumoconiosis
  • Osteoarthritis of the knee in coal miners
  • Leukaemia 
  • Cataract
  • Dysbarism
  • Osteonecrosis
  • Subcutaneous cellulitis of the hand including  fixed flexion deformity of one or more metacarpophalangeal joints greater than 45 degrees 
  •    Subcutaneous cellulitis of the hand with fixed flexion deformity of one or more interphalangeal joints 

Disease or injury conditions caused due to biological agents:

  •     Anthrax-cutaneous
  •  Anthrax-pulmonary
  •   Glanders
  • ·Infection by leptospira
  •  Ankylostomiasis-cutaneous larva migrans
  • ·Ankylostomiasis-iron deficiency anaemia
  •   Tuberculosis.
  •    Extrinsic allergic alveolitis.
  • ·  Infection by the hepatitis A virus
  • ·   Infection by the hepatitis B or C virus
  • · Infection by Streptococcus suis. This is a very rare form of meningitis caused by exposure to infected pigs or pork products.
  • ·        Avian chlamydiosis
  • ·        Ovine chlamydiosis
  • ·        Q fever, caused by contact with animals or with the remains or their untreated products. 
  • ·        Orf caused by contact with sheep or goats, or with the carcasses of sheep or goats. 
  • ·        Hydatidosis is caused by contact with dogs or during the handling of dogs
  • ·        Lyme disease, which is caused by exposure to deer or other mammals (of a type) liable to harbour ticks harbouring Borrelia bacteria


  • Anaphylaxis which is caused by direct contact with products made out of natural rubber latex
  •    Anaemia with a haemoglobin concentration of 9g/dL or lower, and a blood film showing punctate basophilia, which is caused by the use or handling of, and exposure to the fumes, dust or vapour of, lead or a compound of lead, or from a substance containing lead
  • ·        Peripheral neuropathy
  • · Central nervous system toxicity characterised by parkinsonism, which is caused by The use or handling of, or exposure to the fumes, dust or vapour of, manganese or a compound of manganese, or a substance containing manganese.
  • ·        Phossy Jaw which is caused by work involving the use of white phosphorus. This disease can be caused by actions involving the handling of, or exposure to, white phosphorus.
  •  Peripheral polyneuropathy or peripheral polyneuropathy with pyramidal involvement of the central nervous system, caused by organic compounds of phosphorus which inhibit the enzyme neuropathy target esterase.
  • Primary carcinoma of the bronchus or lung


This blog post addressed the question “Will I Be Able To Claim Fewer Benefits If I Resign Due to Ill health?”Your resignation due to ill health must be made with medical proof that you cannot perform your regular duties as a worker owing to a disease or terminal illness. The resignation will appear justified to the Department for Work and Pensions if they are satisfied that you will not be able to physically recover from the disease in the long term.

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Frequently Asked Questions (FAQs) : Will I Be Able To Claim Fewer Benefits If I Resign Due To Ill Health?

What counts as a disability?

The definition mentioned in Section 6 of The Equality Act 2010 regarding “what counts as a disability” specifies that you are disabled if:

  • You are suffering from a physical or mental impairment
  • The physical or mental impairment is having a substantial long-term negative effect on your ability to carry out regular activities.

Impairments that are automatically considered a disability include:

  • Cancer
  • Visual Impairments which include partially sighted and severely sight impaired
  • Multiple sclerosis
  • An HIV Infection
  • A severe long-term disfigurement

Can I choose to agree a solution with my employer instead of going ahead with my resignation?

Yes, if your health permits you to continue on the job you can choose to agree a solution with your employer. You can take some sickness leave to get yourself treated and see how much better you are able to perform after that. 

When you make an agreement with your employer you should explain your course of action in writing to your employer. You also need to mention a time frame in which you will undertake these actions. Your employer might also wish to conclude a legally binding agreement.

This agreement will forfeit your right to continue any legal action regarding your problems. An arbitrations settlement is usually concluded with the help of an arbitrator the the Industrial Relations Agency.

This kind of a solution might involve flexible working hours or working from home, given your disease or health problems.

What is the LRA Arbitration Scheme?

The Labour Relations Agency arbitration scheme aims to resolve cases through deliberations by independent adjudicators. Hearings of cases are held in private and there is no cross examination of presented witnesses. Most claims which are brought to court can be resolved instead through arbitration, including claims such as:

  • Illegal removal from your job
  • Severance pay claims
  • Flexible working arrangements for special needs
  • Discrimination in the hiring process or discrimination between employees (for promotions or wage raises)
  • There is no provision to use the Industrial Relations Agency arbitration scheme