DWP list of eight PIP payment combinations set to be replaced by vouchers

Eight different payment combinations are being offered to PIP claimants ahead of an overhaul that could scrap direct cash transfers and replace them with vouchers. The Department for Work and Pensions has published plans for a revamp of the current system in its Modernising Support for Independent Living: The Health and Disability Green Paper.

The DWP said: "We need to ensure we have a system that is sustainable and fair for all. PIP was designed as a contribution towards the extra costs faced by people with health conditions and disabilities to enable independent living. Some claimants will have considerable extra costs related to their disability and others will have minimal costs. This Green Paper looks at whether there are ways we can improve how we support people, in a way that is also fairer to the taxpayer than the current system."

The proposed crackdown to cut the spiralling costs of Personal Independence Payment (PIP) could see vouchers, grants and shopping catalogues offered to those with disabilities and long-term health conditions instead of cash awards of up to £737 a month.

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Around 3.5 million people receive PIP, including 2.6 million who are of working age. The DWP says it approves 33,000 new claims for PIP every month, more than double the rate before the pandemic. The "unprecedented" demand is fuelled by a rise in applications from people with mental health issues, which accounts for the majority of claims.

These are all the current PIP payments. There are two different components, each with a higher and lower rate. People can get any one or two of those, giving eight possible PIP combinations. All are detailed below.

Personal Independence Payment (PIP) rates 2024-2025

Daily Living Component

• Standard: £72.65 a week (from £68.10)

• Enhanced: £108.55 a week (from £101.75)
  

Mobility Component

• Standard: £28.70 a week (from £26.90)
  

• Enhanced: £75.75 a week (from £71.00)

PIP payment combinations

PIP awards are based on a weekly payment rate but are paid out every four weeks. So in months that span five weeks, you could get one PIP payment in your account at the start of the month and another at the end of the same month. Based on our calculations, here are all the possible payment amounts you could receive.

1. Standard daily living only

Payment rate: £72.65 a week

Monthly amount (every four weeks): £290.60

Annual amount (based on 52 weeks): £3,777.80

2. Enhanced daily living only

Payment rate: £108.55 a week

Monthly amount (every four weeks): £434.20

Annual amount (based on 52 weeks): £5,644.60

3. Standard mobility only

Payment rate: £28.70 a week

Monthly amount (every four weeks): £114.80

Annual amount (based on 52 weeks): £1,492.40

4. Enhanced mobility only

Payment rate: £75.75 a week

Monthly amount (every four weeks): £303

Annual amount (based on 52 weeks): £3,939

5. Standard daily living plus standard mobility

Payment rate: £101.35 a week

Monthly amount (every four weeks): £405.40

Annual amount (based on 52 weeks): £5,270.20

6. Standard daily living plus enhanced mobility

Payment rate: £148.40 a week

Monthly amount (every four weeks): £593.60

Annual amount (based on 52 weeks): £7,716.80

7. Enhanced daily living plus standard mobility

Payment rate: £137.25 a week

Monthly amount (every four weeks): £549

Annual amount (based on 52 weeks): £7,137

8. Enhanced daily living plus enhanced mobility

Payment rate: £184.30 a week

Monthly amount (every four weeks): £737.20

Annual amount (based on 52 weeks): £9,583.60

This means the minimum payment a person can receive will be £290.60 every four weeks, an increase of £18.20 from the previous £272.40. The maximum will be £737.20 every four weeks, an increase of £46.20 from the previous £691.

The DWP said: "The UK has used a fixed cash transfer system since the 1970s but there are a number of international systems that look at the specific extra costs people have and provide more tailored support instead. For example, in New Zealand, the amount of Disability Allowance is based on a person’s extra costs which are verified by a health practitioner. Norway's Basic Benefit requires people to provide a letter from a GP outlining the nature of their condition and the associated extra costs.

"We are considering options including one-off grants to better help people with significant costs such as home adaptations or expensive equipment, as well as giving vouchers to contribute towards specific costs or reimbursing claimants who provide receipts for purchases of aids, appliances or services. This reflects the fact that some claimants will have significant extra costs related to their disability, and others will have minimal or specific costs.

"While these alternative models help people with the extra costs of their disability or health condition, we know other forms of support including health care, social services care provision and respite are also important to help people to realise their full potential and live independently. We are also considering 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."

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