Chancellor John Healey has confirmed when the Department for Work and Pensions (DWP) will announce details of major reforms to disability benefits. The government is currently reviewing Personal Independence Payments (PIP), led by social security minister Sir Stephen Timms.
Timeline for the Timms Review
Delivering his first Budget in the House of Commons, Mr Healey said the final report of the Timms Review will be released next month. The government will then deliver its response by the end of this year in a White Paper, with legislation to follow in 2027.
A review into young people not in education, employment, or training, led by Alan Milburn, will also be published in November, he added.
What the review could change
PIP is a disability benefit intended to help claimants with some of the extra costs caused by long-term disability or ill-health. In his interim report published in July, Sir Stephen labelled the benefit "no longer fit for purpose."
The review is expected to bring about major changes to eligibility for the benefit and how it is administered. 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 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.
Think tank warns of potential cuts
Mr Healey's update comes after research from the Resolution Foundation suggested that as many as one in six people on disability benefits could have their payments cut. The think tank said that around 16 per cent of people claiming PIP from the DWP do not face additional costs, and may therefore be at risk of losing out under upcoming reforms.
The Resolution Foundation 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.
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."
The think tank has suggested the reforms could include one-off payments to PIP claimants for specific costs, rather than ongoing payments for daily needs, with some claimants reporting costs related to appliances such as buying a mobility aid, or one-off adaptations to their home or vehicle.
The Resolution Foundation report recommended the PIP 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".
Claimant numbers and spending
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.
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.
