Four ways DWP cash payments could be replaced - from catalogues to receipts

Four ways the Department for Work and Pensions (DWP) cash payments could change in a major shake-up – from vouchers to one-off grants - have been revealed. Mel Stride, the DWP boss and Tory MP, has warned a change could be coming in a PIP clampdown.

The new "Modernising Support for Independent Living: Health and Disability" green paper include suggestions to "move away from a fixed cash benefit system". The consultation will run for 12 weeks, closing on July 23, the DWP has confirmed.

The green paper proposes: "With 2.6 million working age people in receipt of PIP and DLA, we need to better understand how people are using these payments and whether more can be done to help those most in need to live full and independent lives."

READ MORE UK mini heatwave within hours will see England 'hotter than Ibiza and Italy'

It goes on: "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 which could include."

The DWP then lists the four ways payments could change if cash payments were scrapped completely. The changes have emerged days after Prime Minister Rishi Sunak vowed a crackdown on benefits, as part of his 'back to work' plan and vision for the country.

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.