DWP PIP benefits crackdown from NHS 'proof letter' to scrapping payments

The government is set to overhaul the Department for Work and Pensions' Personal Independence Payments (PIP) - a benefit that has distributed millions of pounds to disabled and ill individuals since its inception a decade ago. The government has released a 'green paper' - a comprehensive consultation document highlighting issues with the current DWP benefits system for PIP claimants.

This includes a significant rise in the number of people claiming benefits for mental health problems, which it argues is putting a strain on public finances.

The document reveals that PIP expenditure is predicted to increase by 63 percent to £35 billion over the next five years, partly due to nearly a quarter of the population 'reporting a disability' in 2024. The government's consultation proposes several drastic changes in its planned crackdown, ranging from abolishing cash payments to obliging disabled individuals to purchase items from an 'approved list'.

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Cash PIP payments end

Other proposed alterations include requiring a doctor's note or proof of a condition from the NHS. At present, cash payments amount to £184 per week for PIP claimants who can access the full support, equating to £9,580 annually. One suggestion put forward by the government is to cease cash payments to those claiming PIP benefits from the DWP and instead issue vouchers, reports the Express.

The government has proposed: "Moving away from a fixed cash benefit system so people can receive more tailored support in line with their needs. In the United Kingdom, we have had a predominantly cash transfer system for extra costs since the introduction of Attendance Allowance and Mobility Allowance in the 1970s.

"Given there are other models of support used internationally, and the changes in disability benefit caseloads over time, we think it is right to ask about other models of support and the impact of these approaches, including stopping regular cash payments, if they were to be adopted here."

Cash replacements put forward

The government further notes that the cash is often perceived as 'compensation for being disabled', adding: " We also know that some disabled people view their PIP award as compensation for being disabled rather than as an award for extra costs".

Alternatives suggested include a catalogue scheme, with an 'approved list' from which disabled people could select items 'at no or reduced cost'. A voucher scheme would allow disabled people to receive vouchers to contribute towards specific costs. "It could work for both equipment/aids and for services".

PIP eligibility

A receipt scheme would require claimants to purchase equipment or services themselves and then provide a receipt to the government to claim back some money towards it. The government explains that it could 'redesign PIP' and alter eligibility criteria. This could involve 'reforming' the PIP assessment to make it 'more linked to a person's condition'.

Carer's benefits

The government has stated: "We also recognise the important role that unpaid carers play in supporting disabled people and people with health conditions. If support for disabilities and long-term health conditions were to be delivered through a new system, there would be implications for carers' benefits. We will carefully consider these implications when taking forward this consultation on disability benefits."

Removing ‘work capability’ assessment for Universal Credit

The proposals indicate that the government plans to abolish Universal Credit fitness for work assessments when issuing PIP and replace it with a single, new Universal Credit health element. The aim is "to help more disabled people and people with health conditions to start, stay and succeed in work".

The document further states: "We think an assessment based on condition would require a greater emphasis on the provision of medical evidence of a diagnosis and we would need to consider the requirement this would place on the NHS and health professionals."

Mental health treatment

One of the key points arising from the proposals is the change in mental health provision. The government says it will explore "improved support of other kinds" ie not cash payments, "such as physical or mental health treatment, leading to better outcomes."