Secretary of State for Work and Pensions, the Rt Hon Mel Stride, announced a consultation on reforming the Personal Independence Payment (PIP) system in the House of Commons yesterday, 29 April. Hansard.
The Green Paper Modernising support for independent living: the health and disability seeks views on the approaches government should consider around modernising the welfare system for people with disabilities and health conditions.
According to Government statistics, there are currently 2.6 million working-age individuals who claim PIP, with costs expected to rise to £28bn annually by 2028/29, partly due to increased claims for mental health conditions.
The consultation focuses on the main non-means tested benefit paid to adults of working age with disabilities and health conditions – Personal Independence Payment. Other extra costs benefits are not in scope for this consultation, nor is Attendence Allowance for older adults. Carers' benefits are, if they would be impacted by changes to PIP.
Key proposals for PIP include:
- Eliminating PIP assessments for individuals with certain long-term health conditions or terminal illnesses to simplify the process and reduce bureaucracy.
- Adjusting eligibility criteria to reflect the impact of disabilities on daily life and to ensure fairness.
- Reforming the PIP assessment process to make it less subjective and more closely linked to specific health conditions, possibly removing the need for an assessment for some based on medical evidence.
- Transitioning from fixed cash benefits to “tailored support”, potentially incorporating models that provide one-off grants, vouchers, or reimbursements for specific needs.
The ‘tailored support’ approach acknowledges that while some claimants incur substantial extra costs related to their disability, others may have minimal or specific costs. The alternative models aim to address the extra costs of disabilities or health conditions effectively. In addition, the consultation:
- recognises that other forms of support, including healthcare, social services, and respite care, are crucial in helping individuals realise their full potential and live independently.
- looks at how the Government could better align the support offered by PIP with local NHS health and social care provision, to provide better support for disabled people.
- considers whether individuals receiving PIP with lower or no extra costs might benefit more from improved access to treatment and support rather than from cash payments.
The consultation closes on 22 July 2024. Paras 44 to 46 consider the impact on UK devolved nations.
Accessible versions of the Green Paper are available, as is the evidence pack which accompanies the Green Paper.
Homecare Association members are invited to send us their views on the consultation to [email protected].
