One in six people on disability benefits could have their payments cut under major Department for Work and Pensions (DWP) reforms, according to new research by a think tank. The Resolution Foundation said that around 16 per cent of people claiming Personal Independence Payments (PIP) from the DWP do not face additional costs, and may therefore be at risk of losing out under upcoming reforms.
What the research found
PIP is a disability benefit intended to help claimants with some of the extra costs caused by long-term disability or ill-health. The government is currently undertaking a major review into disability benefits, led by social security minister Sir Stephen Timms, who in his interim report published in July this year labelled the welfare system "no longer fit for purpose".
The DWP minister will publish his final report in autumn this year. It is expected to bring about major changes to eligibility for the benefit and how it is administered.
Ahead of the report, the Resolution Foundation has released its own findings on 'failures' and 'waste' in the system. The think tank said an estimated £4.4 billion could be saved if payments were stopped or lowered depending on the level of limitations reported by those who said they faced no extra costs.
Impact on younger claimants
The research saw Savanta survey 2,611 PIP recipients aged between 16 and 64 in England and Wales in May and June. It found that 12 per cent of those with no costs had low limitations, while 4 per cent had no costs but higher level limitations.
The foundation said such a change would impact younger PIP claimants particularly, after finding a fifth (21 per cent) of the current 16 to 24-year-old caseload reported little limitation and no additional costs from their disability.
Meanwhile, the think tank also suggested one-off rather than ongoing payments for people who reported a particular cost rather than daily needs. The research found 30 per cent of those with higher costs reported having costs related to appliances such as buying a mobility aid, and more than a fifth (22 per cent) reported needing one-off adaptations such as to their home or vehicle.
Reform recommendations
The report recommended the assessment should be changed to ask claimants directly about their extra costs and what support would help them live more active lives; and that there should be more frequent but "lower-stakes check-ins" with recipients to get a better idea of fluctuating conditions "and reduce the stress created by infrequent but high-stakes assessments".
Louise Murphy, senior economist at the Resolution Foundation, said: "PIP is a vital benefit for disabled people that enables them to participate in society and live more independently. But the current system is failing on several fronts – recipients don't trust it, awards don't fully reflect the nature of disability today, and spending is rising unsustainably."
Ms Murphy said: "As well as continuing to provide cash awards to help with ongoing additional costs, a reformed PIP system should focus more on support for people to participate in society. A system more attuned to people's needs would also mean that around one in six people who don't face additional costs because of their disability would either no longer qualify for support, or only receive limited help."
Spending and response
A total of 4.09 million people were entitled to claim PIP as of July this year, according to the latest data, up from 3.83 million a year earlier – a rise of 7 per cent. Spending on PIP stood at £16.3 billion in 2019-20, when adjusted for inflation to today's prices, and had increased to £27.3 billion by 2024-25, DWP figures published in September show. It is currently forecast to rise to £41.5 billion by 2030-31.
Learning disability charity Mencap said the Resolution Foundation survey was "inconsistent with our own research and understanding around the importance of PIP and what people with a learning disability and their families spend it on". Its chief executive Jon Sparkes said: "A learning disability is lifelong. The extra costs that come with it don't go away, and neither should adequate support to meet them". He said PIP "can be a lifeline when it comes to covering energy costs, attending appointments, sensory aids and taking part in community life", adding that system reforms should be "shaped by disabled people" as part of the government's current review.
A DWP spokesperson said: "PIP is awarded based on a functional assessment that determines how a condition impacts a person's day-to-day needs. But as the Timms Review report made clear, PIP is no longer fit for purpose and the recommendations from its final report will lay the foundation for sustainable reform."
Draft recommendations formulated by Sir Stephen's expert committee so far include replacing some PIP awards with other services or 'non-cash support', while keeping cash as the "foundation" of the benefit. Other suggestions under the review include reducing the number of "unnecessary" benefit reviews for people with lifelong or degenerative conditions and ending the "unnecessary stress" of rules that see PIP payments suspended for people who spend more than 28 consecutive days in hospital. Recommendations also include increasing capacity for face-to-face assessments while also increasing the availability of digital services for PIP claimants.
Currently, how much a claimant gets paid depends on how their condition affects their ability to perform everyday tasks or get around. An award can range from £30.30 per week to £194.60 per week for the most affected.
