Government is considering removing financial support from some people receiving personal independence payments (PIP).
The proposal features in a green paper among plans targeted at cutting the cost of PIP which will also consider whether to remove PIP assessments altogether for people with certain long term health conditions or disabilities, including those with terminal illnesses.
Supporting their case for the proposals, government warned that more than twice the number of people are claiming PIP and Disability Living Allowance (DLA) than before the pandemic, with the increase partially due to a rise in people receiving PIP for mental health conditions.
PIPs were introduced in 2013 with the intention that it would be a more sustainable benefit that would support disabled people to live independently by helping with the extra costs they face.
Government revealed it plans to consider whether the current thresholds for entitlement correctly reflect the need for ongoing financial support.
This includes considering if current descriptors – such as the need for aids and appliances – are good indicators of extra costs.
The green paper will also explore:
- Looking into whether some people receiving PIP who have lower, or no extra costs, may have better outcomes from improved access to treatment and support than from a cash payment.
- Looking at changing the qualifying period for PIP in order to ensure the impact that people’s conditions will have on them over time is fully understood and consider whether a change to the test used to determine if a condition is likely to continue long-term is needed.
- Reforming the PIP assessment so that it is more closely linked to a person’s condition and exploring removing assessment entirely for those most in need.
- Considering whether some people could receive PIP without needing an assessment by basing entitlement on specific health conditions or disabilities supported by medical evidence. This would include looking at whether evidence of a formal diagnosis by a medical expert should be a requirement to be assessed as eligible for PIP in a bid to make it easier and quicker for people with severe or terminal conditions to get the support they need.
- Exploring alternative approaches to ensure people are given the right help to fulfil their potential and live independently. While the UK has used a fixed cash transfer system since the 1970s, there are a number of international systems that look at the specific extra costs people have and provide more tailored support instead. For example, in New Zealand, the amount of Disability Allowance is based on a person’s extra costs which are verified by a health practitioner. Norway’s Basic Benefit requires people to provide a letter from a GP outlining the nature of their condition and the associated extra costs.
- Considering options including one-off grants to better help people with significant costs such as home adaptations or expensive equipment, as well as giving vouchers to contribute towards specific costs, or reimbursing claimants who provide receipts for purchases of aids, appliances or services.
‘Cruel and ineffective’
Government argued that removing PIPs assessment for certain groups would “reduce bureaucracy and make life easier for those most in need of support”.
“By more accurately targeting support,” it argued, “we will ensure the large scale of government expenditure on PIP translates into better outcomes for disabled people and those with health conditions”.
But the British Medical Association (BMA) called government’s plans “cruel and ineffective”.
Its mental health lead Dr Andrew Molodynski said: “If the government wants to see fewer people unable to work due to poor mental health, the answer is not to blame individuals and strip away the support they need. This approach is as cruel as it is ineffective.
“The government would be better placed properly funding the critical health and social services that keep people healthy, and tackling the record levels of poverty this country is facing. ”
The government warned that the caseload and costs are now “spiralling” as there are now 2.6 million people of working age claiming PIP and DLA – with 33,000 new awards for PIP each month, which is more than double the rate before the pandemic. It added this is expected to cost the taxpayer £28bn a year by 2028/29 – a 110% increase in spending since 2019.
Government attributed the increase in part to the rise in people receiving PIP for mental health conditions such as mixed anxiety and depressive disorders, with monthly awards doubling from 2,200 to 5,300 a month since 2019.
It added that since 2015, the proportion of the caseload receiving the highest rate of PIP has increased from 25% to 36% and said “many more people” being awarded PIP now have mental health conditions than when it was first introduced.
‘Biggest welfare reform in a generation’
Mel Stride, work and pensions secretary, (pictured) said: “We’re making the biggest welfare reforms in a generation – protecting those most in need while supporting thousands into work as we modernise our benefit system to reflect the changing health landscape.
“A decade on from the introduction of PIP, this green paper opens the next chapter of reform, enhancing the support for people with health conditions and disabilities while ensuring the system is fair to the taxpayer.”