The Department for Work and Pensions (DWP) is planning a significant shake-up of its Personal Independence Payments (PIP).
The current system, the government claims, is putting strain on public finances.
During the past 11 years, the benefit has dispersed millions to ill and disabled individuals across the UK.
However, now the government has released a “green paper”, an all-encompassing consultation document revealing the issues with the present DWP benefits system.
One issue in particular is the increase in the number of people claiming benefits due to mental health problems.
The document forecasts that PIP expenditure will surge by 63 per cent to £35 billion within five years, partly as a result of almost a quarter of the population “reporting a disability” in 2024.
Seven considerable changes have been put forward as part of a government crackdown. These range from scrapping cash payments to requiring disabled claimants to buy items from an “approved list”.
There is also a proposal to necessitate a doctor’s note or proof of a condition from the NHS to claim the benefit, reports Bristol Live.
Cash PIP payments end
At present, PIP claimants who qualify for full support receive cash payments of £184, equating to £9,580 annually. The government is considering discontinuing these cash payments, instead offering vouchers.
The government has stated: “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.”
Alternate to cash replacements
It also notes that cash can be perceived as “compensation for being disabled”, as the government says: “We also know that some disabled people view their PIP award as compensation for being disabled rather than as an award for extra costs”.
Among the proposed alternatives is a catalogue scheme with an “approved list” at “no or reduced cost” as well as a voucher scheme. This could go towards equipment, aids and services.
A receipt scheme would also require claimants to purchase equipment or services themselves and then provide a receipt to claim back some of the money.
Eligibility for PIP
The government says it could “redesign PIP” and make changes to the eligibility criteria. The assessment for PIP could be reformed to make it “more linked to a person’s condition”.
Carer’s benefits
The government has acknowledged the crucial contribution of unpaid carers in aiding those with disabilities and health conditions, stating: “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.”
‘Work capability’ assessment to end for Universal Credit
In a move to streamline assessments, the government is considering scrapping the ‘work capability’ assessment for Universal Credit claimants. The proposal suggests introducing a new health component for Universal Credit, as detailed in the document: “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.”
Mental health treatment
Mental health treatment is also at the forefront of the government’s agenda. The proposals highlight a shift towards offering more than just financial aid, with the government expressing a desire to delve into “improved support of other kinds” beyond monetary assistance.
They are looking into options such as “physical or mental health treatment, leading to better outcomes.”
