Disability benefit system needs fundamental change amid rising costs – minister
Disability benefit system needs fundamental change – minister

Sir Stephen Timms, the minister leading a review of Personal Independence Payment (Pip), has stated that the disability benefit system requires "fundamental change" to ensure it is "financially sustainable". Speaking about the interim report published on Thursday, he warned that the rising costs of Pip could threaten the "vital support" it provides to disabled individuals.

Rising Costs and Claimant Numbers

Spending on Pip is forecast to rise from approximately £26 billion in 2024/25 to more than £41 billion by the end of the decade, up from around £15 billion in 2019/20. Official figures show that the number of claimants in England and Wales has surpassed four million for the first time, roughly doubling since 2019. In April 2026, there were 4.01 million claimants, a 7% increase in a year.

The number of claimants with autistic spectrum disorders has more than doubled in six years, from 103,414 in April 2020 to 258,539. Similarly, those with mixed anxiety and depressive disorders rose from 214,119 to 435,330, while claimants with ADHD or ADD nearly quadrupled from 28,740 to 100,207 over the same period.

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Concerns Over the Current System

Sir Stephen told BBC Radio Four's Today programme that for many people, Pip has become a barrier to participation. He explained, "Because people worry that if they do participate, DWP will come along and say, 'So you can do things after all', and take their benefit away." The interim report noted that while Pip enables many to stay in work, research shows some claimants are scared to engage in physical activities or employment for fear of losing their benefits.

The report described the application process as "dehumanising", "soul destroying", and "degrading". Feedback from nearly 40,000 individuals and organisations revealed that over 90% reported negative experiences with the claiming process.

Need for Fundamental Reform

Sir Stephen emphasised that the system "hasn't kept up with our changing understanding of disability and ill health over the 13 years since it was first introduced". He confirmed that the review will make recommendations in the autumn. When asked if these could include cutting the number of claimants, he said, "Well, we'll need to wait and see what our recommendations are."

The review team, which includes individuals with lived experience of disability, concluded that "while Pip is widely valued as a benefit, it is no longer fit for purpose". The terms of reference require the team to stick within the currently projected spending envelope but do not require savings. However, Sir Stephen noted that financial sustainability is a concern, as the system cannot continue to become inexorably more expensive.

Political Reactions

Conservative shadow work and pensions secretary Helen Whately accused Labour of being "in denial about the seriousness of the situation with our welfare system and the fact that we have to make savings". Work and Pensions Secretary Pat McFadden stated he has asked the review panel to consider whether the assessment process is fit for the range of conditions, given the rise in reports of certain conditions compared to when Pip was conceived 13 years ago.

Demographic Trends

The report highlighted that teenagers and young adults account for a growing proportion of claimants: 16.6% of claimants in April were aged 16-29, up from 14.3% in 2020. The 30-44 age group also rose to 20.9% from 18.7%, while the proportion of claimants aged 45-59 fell to 28.9% from 36.0%. The report noted that demographic changes do not obviously explain the rise in mental health and neurodevelopmental conditions.

Charity Responses

Rethink Mental Illness agreed that "radical reform is needed" but urged a focus on building a fairer, more compassionate system rather than harsher sanctions. Charlotte Gill of the MS Society called for a system that acknowledges invisible and fluctuating symptoms and ends unnecessary reassessments. Jon Sparkes of Mencap welcomed the review's engagement with disability campaigners. Marie Curie called for an end to reassessments and the introduction of lifetime awards for terminal conditions. The Carers Trust highlighted a "complete lack of trust in the system".

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