The Conservatives have proposed automatically moving Personal Independence Payment (PIP) claimants onto Attendance Allowance when they reach State Pension age, as part of wider welfare reforms aimed at cutting the bill by £36.1 billion a year.
The proposals are set out in a 52-page policy document, Welfare That Works, published on November 10 by Shadow Secretary of State for Work and Pensions Helen Whately.
Current rules and proposed change
Under existing rules, people who receive PIP before reaching State Pension age can continue getting payments after retirement, provided they remain eligible. However, most people in England and Wales making a new disability benefit claim after reaching State Pension age must apply for Attendance Allowance instead.
The Conservatives want to change this by automatically transferring affected PIP claimants onto Attendance Allowance when they reach retirement age.
The policy document states: "We will automatically transition new PIP claimants reaching retirement age onto Attendance Allowance."
It adds: "This will mean those who become disabled after reaching pension age are treated the same as those who previously claimed disability benefits – a fairer approach."
Cost estimates
The party estimates that more than 91,000 people currently aged 64 have PIP awards that would continue after they reach State Pension age towards the end of the current parliament.
It claims allowing these awards to continue would cost taxpayers an additional £304 million annually.
The Conservatives estimate their proposed changes would save £209 million for the first affected group in the first year, falling to £194 million in subsequent years. Across multiple groups of claimants, the party forecasts average savings of £580 million annually over five years.
Key differences between PIP and Attendance Allowance
One significant difference between the two benefits is that PIP includes a mobility component, while Attendance Allowance does not.
PIP provides financial support to people with long-term health conditions or disabilities who experience difficulties with everyday activities or getting around. It has two components, daily living and mobility, with each paid at either a standard or enhanced rate depending on the person's needs.
Attendance Allowance is designed to help people over State Pension age who need additional care or supervision because of a disability or health condition. It is paid at two rates depending on the level of support required, but does not provide a separate payment for mobility needs.
This means someone currently receiving both components of PIP could receive less financial support if transferred to Attendance Allowance. The mobility component can also provide access to additional support, including the Motability Scheme for eligible claimants receiving the enhanced rate.
The Conservative policy document does not set out detailed transitional protections for people who could lose mobility support under the proposals.
The wider welfare package is intended to deliver annual savings of £36.1 billion by the end of the next parliament. The party has also proposed tighter eligibility criteria for sickness and disability benefits, including changes to assessments and restrictions affecting some mental health and musculoskeletal conditions.
For now, people approaching State Pension age who already receive PIP should continue following the existing DWP rules.
It's important to be aware that PIP has been replaced in Scotland by Adult Disability Payment and Attendance Allowance has been replaced by Pension Age Disability Payment. Both these devolved benefits are administered and delivered by Social Security Scotland.
