DWP gives examples of how PIP could be paid under new proposals

A new Green Paper has outlined proposed reforms that the Department for Work and Pensions (DWP) believes are necessary to enhance the welfare support system for 2.6 million working-age adults claiming Personal Independence Payment (PIP) in England and Wales. The proposals include altering the eligibility criteria for PIP, revamping the assessment process to be more closely tied to an individual's condition, and exploring alternatives to regular monthly payments.

Following the annual uprating on April 8, a successful claim for PIP or Adult Disability Payment (ADP) for those residing in Scotland is now valued between £28.70 and £184.30 each week in additional financial aid. Given that the benefit is paid every four weeks, this equates to between £114.80 and £737.20 per payment period.

However, the 'Modernising support for independent living: the health and disability Green Paper' proposes moving away from a fixed monthly cash transfer system, suggesting alternatives such as vouchers, a receipts system, one-off grants, and purchasing products or services through a catalogue scheme.

READ MORE: Six DWP benefit and Universal Credit changes set to come into force

Introduced in 2013, PIP was designed to offer non-means tested cash payments to disabled individuals and those with health conditions to assist them in leading independent lives. PIP was intended to contribute towards extra costs arising from their disability and to be a more sustainable, dynamic benefit that would also pay greater attention to mental health than its predecessor, Disability Living Allowance (DLA).

The Department for Work and Pensions (DWP) has highlighted that there are no current restrictions on how Personal Independence Payment (PIP) recipients use their funds. However, the DWP has noted a significant increase in both the number of claimants and the cost of the benefit since its inception ten years ago, attributing this to a rise in self-reported disability prevalence, reports the Daily Record.

DWP's Mel Stride recently stated: "We believe it is the right time to look again at ensuring government support for people with ill health and disabilities is focused where it is most needed."

Stride further elaborated: "We also believe there may be better ways of supporting people to live independent and fulfilling lives and this is the idea running through this Green Paper. This could mean financial support being better targeted at people who have specific extra costs, but it could also involve improved support of other kinds, such as physical or mental health treatment, leading to better outcomes."

The Green Paper suggests that the DWP is considering alternatives to direct cash payments, aiming to ensure that support is more effectively allocated to those who need it most. It also references international examples of disability benefit systems, indicating a review of different approaches used globally.

It goes on to give examples of how disability benefits are delivered in other countries:

• New Zealand - people submit supporting medical evidence verifying their health condition and also provide estimates of their additional costs

• Denmark - awards for extra costs are determined on a case-by-case basis and issued by local government

Additional information on the policies in other regions including France, USA, Norway, and Sweden reveals that they all have stricter eligibility requirements, necessitate medical certification, proof of payment for goods or services, and offer a tiered form of paying benefits - full details here.

The Green Paper highlights that the Department for Work and Pensions (DWP) is considering different methods of support for individuals with disabilities and enduring health conditions, rather than just giving regular cash payments. This could continue to fund the additional costs people face due to their conditions.

Other methods of support

• Catalogue/ shop scheme: i n this kind of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost. This would likely work better for equipment and aids rather than for services.

• Voucher scheme: in this kind of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for both equipment/aids and for services.

• A receipt-based system: this would involve claimants buying aids, appliances, or services themselves, and then providing proof of their purchase to claim back a contribution towards the cost. This could work in a similar way to Access to Work, which provides grants for equipment, adaptations, and other costs to help disabled people to start and stay in work.

• One-off grants: these could contribute towards specific, significant costs such as for home adaptations or expensive equipment. It could involve a person supplying medical evidence of their condition to demonstrate the need for equipment or adaptations.

In relation to the consultation linked to the Green Paper, it seeks to ascertain whether these alternative systems of support could be effectively employed to offset the additional expenses faced by those living with disabilities or ongoing health issues.

Other types of support may take the form of healthcare, social care provision, and respite services, which it stresses are crucial in enabling individuals to reach their full potential and maintain independence.

"We would like to understand whether some people receiving PIP who have lower, or no extra costs, may have better outcomes from improved access to treatment and support than from a cash payment," the document adds.

The consultation also seeks to identify if there are particular groups of individuals who require more support than they currently receive, and whether this assistance should be monetary or in another form, such as better access to healthcare - including mental health services or physiotherapy - or increased local authority support.

You can view the complete Green Paper and participate in the online consultation on GOV.UK here.