My friend is due to terminate employment on a c.e. scheme shortly and will just have his Disability Allowance.
He did make a claim for IP some months ago and was refused and he made an appeal directly to the department who rang him and advised him he was better off as he was or words to that effect.
To qualify you must:
Have been incapable of work for at least 12 months and be likely to be incapable of work for at least another 12 months (you will probably have been getting Illness Benefit or Disability Allowance during that time)