It’s been a benefit that’s handed out millions of pounds to disabled and poorly people since it was introduced 10 years ago but now the government is set to overhaul the DWP’s Personal Independence Payments with a raft of new proposals.
The government has issued a ‘green paper’, a long consultation document that sets out issues with the current Department for Work and Pensions benefits system for PIP claimants, including a huge increase in the number of people claiming benefits for mental health issues which it says is causing a drain on public finances.
It says PIP spending is set to grow 63 percent to £35Bn in the next five years thanks in part to almost a quarter of the population ‘reporting a disability’ in 2024.
Now the government’s consultation has set out several radical changes in its proposed crackdown, ranging from scrapping cash payments to forcing disabled people to buy items from an ‘approved list’.
Other suggested changes include asking for a doctor’s note or proof of a condition from the NHS instead.
Ending Cash PIP payments
Currently cash payments are worth £184 a week to PIP claimants able to access the full amount of support, or £9,580 a year.
One proposal put forward by government is to end making cash payments to people claiming the Personal Independence Payments benefits from the DWP and instead to issue vouchers.
It says: “Moving away from a fixed cash benefit system so people can receive more tailored support in line with their needs.
“In the United Kingdom, we have had a predominantly cash transfer system for extra costs since the introduction of Attendance Allowance and Mobility Allowance in the 1970s. Given there are other models of support used internationally, and the changes in disability benefit caseloads over time, we think it is right to ask about other models of support and the impact of these approaches, including stopping regular cash payments, if they were to be adopted here.”
The government adds that the cash is often seen as ‘compensation for being disabled’, adding: “ We also know that some disabled people view their PIP award as compensation for being disabled rather than as an award for extra costs”
Five cash replacements put forward
Suggestions for alternatives include a catalogue scheme, with an ‘approved list’ from which disabled people could choose items ‘at no or reduced cost’.
A voucher scheme would see disabled people receive vouchers to contribute towards specific costs. “It could work for both equipment/aids and for services”
A receipt scheme would involve claimants buying equipment or services themselves and then giving a receipt to the government to claim back some money towards it.
It says: “This would involve claimants buying aids, appliances, or services themselves, and then providing proof of their purchase to claim back a contribution towards the cost.” And ‘one-off grants’ could give claimants money if they provide medical evidence proving they need something.
Changes to PIP eligibility
The government explains that it could ‘redesign PIP’ and change eligibility criteria. This could include ‘reforming’ the PIP assessment to make it ‘more linked to a person’s condition’.
Change to carers’ benefits
The government says: “We also recognise the important role that unpaid carers play in supporting disabled people and people with health conditions. If support for disabilities and long-term health conditions were to be delivered through a new system, there would be implications for carers’ benefits. We will carefully consider these implications when taking forward this consultation on disability benefits.”
Removing ‘work capability’ assessment for Universal Credit and get more disabled people working
The plans outline that the government intends to scrap Universal Credit fitness for work assessments when issuing PIP and replace it with one, new Universal Credit health element. It adds this is “to help more disabled people and people with health conditions to start, stay and succeed in work”
Doctor’s notes and NHS information for PIP claims
The plans consider swapping the traditional DWP benefits assessment for one based on the views of ‘healthcare professionals’ in a system ‘more like the US’.
It adds: “We think an assessment based on condition would require a greater emphasis on the provision of medical evidence of a diagnosis and we would need to consider the requirement this would place on the NHS and health professionals.”
Change to mental health treatment
One of the most talked about issues arising from the plans is the shift in mental health provision. The government says it will look at “improved support of other kinds” ie not cash payments, “such as physical or mental health treatment, leading to better outcomes.”
