DWP PIP update issued as 250,000 new claimants apply in just a few months

An extraordinary 250,000 individuals filed for Personal Independence Payment (PIP) from January to April 2024, as disclosed by the Department for Work and Pensions. That's an overwhelming average of more than 80,000 applications each month.

This surge in PIP claims has triggered numerous questions about the length of PIP awards and whether the suggested reforms in the Green Paper could cut payments short of their expected review dates. PIP, which started in April 2013, is designed to eventually replace the Disability Living Allowance (DLA).

Amidst this backdrop, a proposed shake-up under consultation until 22 July could see a radical shift from monthly cash benefits to a voucher system. Notably, some PIP recipients may have to retroactively repay benefits following the identification of £90 million in overpayments.

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Worries are mounting about potential modifications to the Motability programme amid discussions on DWP's PIP reforms. Speculation is rife that these changes could spell the end for the scheme, as reported by Birmingham Live.

Addressing these concerns, the DWP issued a statement: "The UK's health landscape has changed since Personal Independence Payment (PIP) was introduced in 2013 with the intention that it would be a more sustainable benefit that would support disabled people to live independently by helping with the extra costs they face.", reports the Manchester Evening News.

"However, the caseload and costs are now spiralling. There are now 2.6 million people of working age claiming PIP and DLA with 33,000 new awards for PIP each month which is more than double the rate before the pandemic. This is expected to cost the taxpayer £28 billion a year by 2028/2029 a 110 per cent increase in spending since 2019."

How long can you be awarded PIP for?

The latest guidance from the Department for Work and Pensions states that when individuals are approved for PIP, decisions about the type of award and length until review are specifically tailored. Various factors are considered:.

Each situation is evaluated on a case-by-case basis, taking into account the claimants unique circumstances and potential changes in their condition. Anticipated treatments or therapies and how they adapt to live with their condition influence the decision.

Fixed-term awards may require reviews anywhere from nine months up to ten years depending on the case, with the shorter timescales generally given in exceptional circumstances. Awards meant for a span lesser than two years are regarded as short-term.

Recent figures for the quarter ending April 2024 show that 79% of PIP claims were short-term awards, ranging from 0 to 2 years. Meanwhile, longer-term awards over 2 years accounted for 12%, with the remaining 8% deemed ongoing as of 31st May 2019.

After a change in practice, claimants who would have undergone review at State Pension age are now more likely to receive ongoing awards, allowing them to continue receiving PIP past pension age, though no new applications can be made after reaching this age.

The guidance, according to the PIP handbook: "Most claimants will have their award regularly reviewed, regardless of the length of the award. This will make sure everyone continues to receive the most appropriate level of support. Some claimants will be given a limited-term award for a fixed period of up to two years. Their award will not be reviewed. Limited awards with no review date are given where the claimant's health condition may be reasonably expected to improve."

The policy on end-of-life care is clear: "Awards made under the special rules for end of life will be for three years. The daily living component will be paid at the enhanced rate in all cases. Payment of the mobility component will depend on whether the claimant needs help to get around and, if they do, how much help they need."

Payment levels for PIP are assessed across two components - daily living and mobility. Claimants may be eligible for either the standard or enhanced rate depending on their individual circumstances.

Some applicants receive only one component, while others are awarded both. This results in payments ranging from £290.60 to £737.20 every four weeks.

Data shows that 36 per cent of all claims with entitlement to Personal Independence Payment (PIP) as of April 20, 2024 receive the highest level of award, with both daily living and mobility components paid at the enhanced rate. This is consistent with the proportion in the previous quarter.

To qualify for PIP, claimants must have had their health condition or disability for three months and expect it to continue for at least another nine months. Therefore, if a PIP award is granted, entitlement begins from the date of the claim, or from the date the three-month qualifying period was satisfied (for new claims), or from approximately four weeks after the PIP decision (for those transitioning to PIP from Disability Living Allowance following a reassessment of their claim).

There are circumstances when payment may be suspended, such as when an individual is hospitalised.

Will the proposed reforms stop my PIP before my review is due?

Mims Davies, DWP Minister for Disabled People, Health and Work, has assured individuals that there will be no immediate change to their PIP as a result of the planned reforms. However, reviews will continue as usual and these could still result in someone's PIP being reduced or stopped in this ongoing process.

Ms Davies discussed the potential impact of the proposed changes to benefits, stating: "Modernising Support for Independent Living: The Health and Disability Green Paper looks at different options to reshape the current welfare system so that we can provide better-targeted support to those who need it most. We are considering these options through our 12-week consultation which was published on Monday 29 April and will close on Monday 22 July at 11.59pm."

She further clarified: "There will be no immediate changes to PIP, or to health assessments. All scheduled PIP assessments and payments will proceed as normal, and claimants should continue to engage as usual and provide any necessary information or updates regarding their circumstances."

She encouraged participation in the consultation, saying: "We encourage everyone to respond to the consultation which can be found here so that we are able to hear from as many disabled people, people with health conditions, their representatives, and local stakeholders as possible on these important issues."