New DWP update on replacing monthly PIP cash payments for vouchers could be due this week
More than 3.6 million people on Personal Independence Payment (PIP) could find out as early as this week whether proposed changes outlined in the ‘Modernising support for independent living: the health and disability green paper ’ will go ahead under the new Labour Government.
The next Department for Work and Pensions (DWP) oral questions session will take place in the House of Commons on Monday, October 7 and will be the first time the new ministerial team, led by Liz Kendall, will face questions from Opposition benches.
An online consultation on the proposed reform of the benefits system, including scrapping the Work Capability Assessment and having a single tier assessment approach for all benefits, received over 16,000 responses. Shortly after it closed on July 22, Minister for Social Security and Disabilities, Sir Stephen Timms MP, said that the DWP will review the responses while “considering our own approach to social security in due course”.
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More recently, in a written response to Labour MP Mary Kelly Foy, who asked whether the DWP plans to "reform or replace" the Work Capability Assessment, Sir Stephen said that the government is “committed to reforming or replacing the Work Capability Assessment, alongside putting in place a proper plan to support disabled people into work”.
He continued: “We will also give disabled people the confidence to start working without fear of an immediate benefit reassessment if it does not work out. More disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.
“These plans are central to our missions of kickstarting economic growth and breaking down barriers to opportunity.
“This government is committed to championing the rights of disabled people and to the principle of working with them, so that their views and voices will be at the heart of all that we do.”
Proposed changes include swapping cash PIP payments of up to £737.20 every four-week payment period for a range of other support, including vouchers, one-off grants, a receipt-based scheme or choosing support aids from a catalogue.
Other proposals include amending eligibility for PIP, reviewing the assessment process and passing PIP costs on to the NHS and local authorities.
Alternatives to regular PIP cash payments
The Green Paper explains if DWP were to consider other ways of supporting people with disabilities and long-term health conditions - apart from providing regular cash payments - it could continue to contribute to people’s extra costs through alternative models.
These include:
Catalogue/ shop scheme: in 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.
The Office for Budget Responsibility (OBR) estimates that the planned changes to the Work Capability Assessment would mean 424,000 people with serious mobility or mental health issues would be denied extra Universal Credit worth over £400 a month and protection from sanctions.
The OBR estimates that just three per cent of these people would be expected to move into work in the subsequent four years.
Benefit claimants living in Scotland
It’s important to be aware that the proposed changes will not affect 173,000 people in Scotland currently on PIP or Disability Living Allowance (DLA) as they will be moving to Adult Disability Payment (ADP) before the end of next year.