This week marks the end of the public consultation period, which could lead to significant changes to Personal Independence Payments (PIP).
This review process was initiated by former Prime Minister Rishi Sunak and unveiled in his “sick note generation” speech in April. Shortly afterwards, the Department for Work and Pensions published a document outlining the changes proposed by the previous government.
The Labour Party has now come to power and depending on the policies of the new government this could make the consultation redundant, but there has been no official announcement of this.
READ MORE: Martin Lewis says people earning less than this amount may be entitled to Universal Credit and it’s more than you think
READ MORE: Three important DWP and money dates you need to know in August
The consultation stopped accepting feedback earlier this week, and all responses are now being considered by the DWP. Here is a summary of a number of key changes proposed in the DWP consultation document and what they could mean for you, the Mirror reports.
Replacing regular payments with one-off subsidies or vouchers
One of the key measures recommended in the document is replacing regular benefits with one-off grants or vouchers. Around three million people in the UK claim PIP.
The main disability benefit for adults in the UK living with permanent medical conditions and disabilities is PIP, which was launched in 2013. The aim of these benefits is to help recipients with the additional financial burden that comes with disability.
The amount received depends on the level of difficulty individuals face with daily tasks and mobility. PIP currently has two components, with claimants eligible for one or both, each with enhanced and standard rates. Those eligible for the highest rates in both components can receive £184.30 per week.
To explore “alternative approaches to support”, the DWP document proposes vouchers and one-off grants. These would help with “significant costs such as home adaptations” or expensive equipment, and contribute towards the purchase of aids, devices or services.
Another suggestion is a “catalog scheme” with an “approved list” of support items such as aids and equipment. This would provide claimants with these items at “reduced or no cost.”
Controversially, the DWP is also proposing to reduce PIP payments for people with “lower” costs. They argue that these people “may achieve better outcomes through greater access to treatment and support than through a cash payment”, and claim that this provides more “tailored support”.
Changes to the PIP admission criteria
There is a common misconception about Personal Independence Payment (PIP) that eligibility is based on the specific condition an individual has. This is not the case; it is about how the condition affects daily life.
For example, having type 1 diabetes does not guarantee that you will qualify for PIP. However, if there are circumstances arising from this condition, such as loss of vision, which makes routine tasks more difficult, then you may qualify for PIP – although this is not guaranteed.
The Department for Work and Pensions (DWP) has proposed changing the already strict criteria for accessing the benefit. In the consultation, the DWP said that the “criteria currently used in PIP assessments do not always fully reflect how a disability or health condition affects a person’s daily life”.
The DWP examined whether the thresholds that determine entitlement accurately reflect the need for ongoing financial support. This involved looking at whether existing descriptions such as the requirement for aids and equipment are reliable indicators of additional expenditure.
The DWP also made a proposal to change the qualifying period for PIP, suggesting a change to the determination of long-term conditions and potentially removing reassessments for those with lifelong conditions. Despite this, no confirmation was given in the consultation documents.
Considerations on reforms to the PIP assessment
The Department for Work and Pensions (DWP) has proposed a review of the Personal Independence Payment (PIP) assessment process, acknowledging in a consultation document: “PIP is over a decade old and much has changed since the assessment was developed. We know that some people still find PIP assessments difficult and repetitive and consider the assessment to be too subjective. We will consider whether some people could receive PIP without needing an assessment by basing entitlement on specific health conditions or disabilities supported by medical evidence.”
The discussion paper refers to the New Zealand approach, where disability benefit amounts are determined based on additional costs confirmed by a healthcare provider. In addition, the DWP is looking at the Norwegian model, where individuals must provide a letter from a GP detailing their condition and additional costs in order to qualify for a “Basic Benefit” payment.
Critics have noted that the Norwegian system is similar to the current PIP framework in the UK. Currently, PIP applicants must provide detailed medical documentation about their condition and its effects on their daily lives.
They would also have to undergo a points-based assessment, with the number of points they collect determining their eligibility for the benefit. The current trend of focusing on “how your disability affects you” would be replaced by a condition-based assessment, meaning you would only be assessed for the benefit if you have a formal diagnosis from a medical professional. This supposed change is claimed by the DWP to give people with serious or terminal conditions quicker and easier access to vital support.
The consultation documents state: “We need to understand how we choose the conditions that qualify for support, whether this approach would be fair and whether it would help us ensure that support goes to people with the greatest need and to those who have additional costs related to their condition.”
Only these changes to the discussion received somewhat positive feedback. Disability charities have been pushing for reforms to PIP assessments for years.
However, this could introduce the risk that those with certain medical conditions, which may not be considered serious or long-term enough, will be disqualified from receiving PIP altogether. Consequently, those desperately struggling with such conditions may be left powerless to claim financial support.