DWP proposes changes to way PIP is paid to 3.5 million claimants

The Department for Work and Pensions (DWP) is considering significant changes to the Personal Independence Payment (PIP) system, which could see an end to regular monthly payments for the 3.5 million claimants. PIP may be restructured due to the "unsustainable" costs of managing the benefit.

According to the DWP, the benefit receives 70,000 new applications each month. The proposed changes include replacing monthly cash payments with vouchers and grants for direct assistance such as therapy and equipment, reports Birmingham Live.

This has raised alarm among disabled individuals who depend on PIP to cover transportation costs, including taxis and adapted vehicles, to get to work. The potential reform has ignited debate over PIP's work rules and the implications for the government's current jobs push.

Read more: DWP warns Universal Credit claimants to look for urgent message from this week

Read more: Over 400,000 people warned their PIP payments could be cut under new rules

SNP MP Drew Hendry has asked the DWP how the PIP alterations could influence the UK jobs market. Mims Davies, Minister for Disabled People, Health and Work, in a written reply, stated: "The Department has made no assessment of the potential impact of Personal Independence Payments on trends in the number of claimants in and seeking employment.

"Personal Independence Payment (PIP) is designed to help with the extra costs arising from long-term ill health and disability, and is paid regardless of income and irrespective of whether someone is in work. PIP can also be paid in addition to other benefits the individual may receive, for example Universal Credit or Employment and Support Allowance, and can provide a passport to additional support through premiums or additional amounts."

Labour MP for Bermondsey and Old Southwark, Neil Coyle, had previously queried about PIP and employment. In response, Ms Davies clarified: "In March 2023, 475,000 people in receipt of PIP in England, Wales, or outside the UK were in employment in the UK, including self-employment. The proportion of people in receipt of PIP who are in employment was published in Modernising Support for Independent Living - The Health and Disability Green Paper."

A consultation on the new Green Paper will end on Monday, July 22. People living with disabilities and long-term health conditions, their representatives, and local stakeholders are all invited to give their feedback.

At the same time, the DWP is tightening its grip on Universal Credit's separate disability provision - which provides additional funds to those categorised as having 'limited capability for work', by more strictly enforcing work assessments and issuing sick notes.