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PIP could be ‘replaced’ as consultation begins on new benefit

by Albert Toth
February 16, 2025
in Finance
Reading Time: 5 mins read
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Work has begun on plans to utterly substitute the Private Independence Fee (PIP) with a model new profit designed to make the system extra ‘truthful and dignified’.

The Fee on Social Safety has introduced that it’s launching a session to introduce a brand new ‘Further Prices Incapacity Fee’ rather than PIP. They’ve opened the scheme to all folks with expertise of the system by means of an internet survey and a sequence of upcoming focus teams.

Funded by the Belief for London, the Fee says it’s run by “consultants with lived expertise of the UK social safety system.” It has been engaged on proposals to enhance the UK profit system since 2018, and is now working the brand new session after a hiatus in 2023/24.

They stated: “Like the remainder of the Fee’s work, we’re placing ahead proposals for a reimagined social safety system that’s designed by and works for these of who depend on it. It might be vastly completely different to the present system.”

Claimed by 3.6 million folks, PIP is likely one of the important well being or disability-related advantages that may be accessed within the UK. It’s designed to assist with further residing prices for many who have a long-term bodily or psychological sickness that impacts their capacity to do on a regular basis duties or get round.

Work and pensions secretary Liz Kendall (Jordan Pettitt/PA)

Work and pensions secretary Liz Kendall (Jordan Pettitt/PA) (PA Wire)

It isn’t the identical as Employment Assist Allowance (ESA), which is an out-of-work profit claimed by 1.5 million folks. PIP will be claimed whether or not somebody is usually working or not, and it isn’t means-tested.

In the mean time, PIP is paid based mostly on two components – day by day residing and mobility – at a better or decrease price depending on severity. This implies there are 4 potential weekly cost ranges starting from £28.70 to £184.30.

The Fee stated in its 2022 ‘Plan for a good social safety system’ that it wish to see these charges overhauled and simplified to a few ranges: £83.70 for claimants who don’t want a lot help, £152.15 for claimants who want extra help, and £230.77 for claimants who want quite a lot of help.

The plan additionally expands the eligibility standards for PIP to look in additional element on the type of help claimants want. This could possibly be with issues like private care, staying protected, working their house, going out and socialising, shifting round, and extra.

Lastly, it specifies that assessors ought to “work with” claimants “to see what [they] want,” versus in search of grounds to disclaim the profit. PIP ought to then even be granted “for the remainder of [their] life if vital” and never topic to common reassessment.

Outcomes from the session will form the proposals that the Fee places ahead to the DWP later this 12 months. The group explains that it “covers key areas equivalent to eligibility standards, evaluation processes, and the construction of advocacy and help providers.

“It additionally explains a number of the wider systemic modifications we would have to see to make the brand new system a actuality, just like the creation of a Nationwide Impartial Residing Service.”

Work and pensions minister Sir Stephen Timms (Jonathan Brady/PA)

Work and pensions minister Sir Stephen Timms (Jonathan Brady/PA) (PA Archive)

The session comes forward of inexperienced paper attributable to be launched by the DWP in Spring which can reveal Labour’s plans to ‘overhaul’ the well being and incapacity profit system. Particulars haven’t but been confirmed, however the authorities has dedicated to matching the £3 billion in welfare financial savings pencilled in by the earlier Conservative administration.

Earlier in February, the division additionally confirmed it was urgent forward with modifications to PIP below a separate programme launched by the earlier authorities. These will ‘remodel’ all the service, social safety minister Sir Stephen Timms stated, with modifications to eligibility, choices and funds all in scope.

Ken Butler, welfare rights and coverage adviser at Incapacity Rights UK stated: “DR UK would encourage Disabled folks and their organisations to participate within the Fee’s survey.

It’s a really welcome and well timed antidote the DWP’s forthcoming Inexperienced Paper aimed a making £3 billion of cuts to incapacity and well being advantages expenditure.

Because the Fee says, the outcomes of the session generally is a constructing block to safe ‘truthful, dignified, and holistic help’ to Disabled folks, addressing the extra prices and systemic obstacles that they face and guarantee it displays the wants and realities of these it seeks to help.”

A DWP spokesperson stated: “We’ve been clear that the present welfare system wants reform, so it’s fairer on the taxpayer and folks can get the help they should transfer into work.

“Constructing on our Get Britain Working White Paper, we’ll carry ahead proposals for reforming the well being and incapacity advantages system inside weeks, and are working carefully with disabled folks, incapacity organisations, and folks with well being circumstances so their views and voices are on the coronary heart of our plans.”



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