A new report warns that around one in six working-age Personal Independence Payment (PIP) claimants do not face any extra costs due to their disability, with the Resolution Foundation suggesting up to £4.4 billion could be saved by reforming payments.
A survey of 2,611 PIP recipients aged 16–64 in England and Wales found 16% reported no costs from their condition. Young claimants are particularly highlighted, with 21% of those aged 16 to 24 reporting little limitation and no additional costs.
Proposed changes to PIP payments
The think tank also proposed one-off payments for people with specific one-time costs, such as mobility aids or home adaptations, rather than ongoing support. It also recommended overhauling the assessment process to ask claimants directly about their extra costs.
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."
Rising spending and future outlook
Spending on PIP has nearly doubled in real terms, rising from £16.3 billion in 2019-20 to £27.3 billion in 2024-25, and is forecast to reach £41.5 billion by 2030-31. A total of 4.09 million people were entitled to claim PIP as of July 2026, up 7% on the previous year.
A government review into PIP reform is expected to be published this autumn.
