Update on DWP's proposed PIP overhaul due next week as cash benefits may shift to vouchers and grants

The first time that Labour's DWP - which Liz Kendall heads - stands in the spotlight, updates on the proposals could be shared.

Next week, the Department for Work and Pensions (DWP) will face scrutiny over its plans to significantly revamp the disability benefit known as Personal Independence Payment (PIP). An oral question session is scheduled for Monday, October 7, in the House of Commons.

Earlier in the year, under the previous Conservative leadership, a consultation was initiated suggesting a major overhaul of PIP. The proposed changes include replacing cash payments of PIP, which can amount to up to £737.20 every four weeks, with alternatives such as vouchers, one-time grants, a receipt-based system, or options to select support aids from a catalogue.

The consultation concluded on July 22 this year, having garnered more than 16,000 responses. Since then, Labour has assumed power.

At that time, Labour's Social Security and Disabilities minister, Sir Stephen Timms MP, indicated that the DWP would examine the feedback while "considering our own approach to social security in due course". More recently, in a written reply to Labour MP Mary Kelly Foy, Sir Stephen confirmed the government's commitment to either reform or replace the Work Capability Assessment associated with Universal Credit, as well as to "putting in place a proper plan to support disabled people into work".

"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.", reports the Mirror.

With the spotlight on Labour's DWP for the first time under Liz Kendall's leadership, updates on their proposed reforms could emerge. In the UK, approximately 3.6 million individuals are PIP claimants, which stands as the primary disability benefit distributed by the DWP.

The Green Paper suggests major overhauls for the PIP benefit system, including replacing regular payments with one-off grants and vouchers. Currently, around three million people are in receipt of PIP, which was launched in 2013 to aid adults living with long-term medical conditions or disabilities by offsetting added financial burdens.

The amount individuals receive from Personal Independence Payment (PIP) is contingent on the level of challenge they face with daily activities and mobility. Presently, PIP is divided into two components – claimants may be eligible for one or both, which come in enhanced and standard rates.

Claimants entitled to the highest rates of each can gather £184.30 weekly. A Whitehall document outlines proposals to consider "alternative approaches to support" for claimants.

These could include vouchers and one-off grants designed to aid those facing "significant costs such as home adaptations" like home modifications or purchasing costly equipment. The system would potentially allow for contributions towards specific spending on aids, appliances, or services.

Moreover, the Department for Work and Pensions (DWP) put forward the idea of a "catalogue scheme", essentially an "approved list" of supportive items such as occupational aids and equipment which people could access at "reduced or no cost". In contrast, the DWP suggests reducing PIP payments for those with "lower" expenses, postulating that such individuals "may have better outcomes from improved access to treatment and support than from a cash payment".

The Department proposes this strategy would provide more "tailored support". Subsequently, there is mention of possible changes to PIP eligibility criteria.

One of the biggest misunderstandings surrounding PIP is that its eligibility is based on the condition one suffers from. In reality, it's how the condition affects daily life that's the key determinant.

Take type 1 diabetes, for example; it does not, in itself, qualify someone for PIP, but if it leads to vision loss, which then impedes routine activities, the person might be eligible, albeit there's no guarantee. The DWP has proposed tightening the already strict criteria for this benefit even further.

They noted during a consultation session that "criteria currently used in PIP assessments do not always fully reflect how a disability or health condition impacts on a person's daily life". They raised questions on whether the entitlement thresholds accurately represent the necessity for continual financial support, and whether current descriptors, like requiring aids and appliances, are true measures of additional expenses.

In terms of amendment proposals, the DWP also suggested modifying the qualifying period for PIP, altering how long-term conditions are recognised, and potentially eliminating reassessments for people with permanent ailments, though nothing was finalised in the consultation documents.

The Department for Work and Pensions (DWP) has hinted at possible reforms for the Personal Independence Payment (PIP) assessment, sparking discussions among claimants. The review documents noted: "PIP is over a decade old and a lot has changed since the assessment was developed. We know some people continue to find PIP assessments difficult and repetitive and view the assessment as too subjective. We will consider whether some people could receive PIP without needing an assessment by basing entitlement on specific health conditions or disabilities supported by medical evidence."

They referenced New Zealand's disability allowance system, which is based on verified extra costs related to a person's condition.

Furthermore, Norway's practice of requiring a GP's letter to confirm one's condition and additional expenses for a "Basic Benefit" scheme was noted. Yet, it was also mentioned that essentially, Norway's approach isn't all too different from the current PIP evaluations in the UK, where claimants still need to supply thorough medical documentation and go through a points-based assessment that decides eligibility.

The proposed change would shift the focus from assessing "how your disability affects you" to a condition-based evaluation, requiring a formal diagnosis from a medical expert to qualify for the benefit. According to the DWP, this would make it "easier and quicker for people with severe or terminal conditions to get the vital support they need".

The consultation documents state: "We need to understand how we would choose the conditions that would be eligible for support, whether this approach would be fair and if it would help us ensure support goes to people with the highest needs and those who have extra costs associated with their condition."

While this policy has received a relatively positive response, with disability charities having long advocated for PIP assessment reform, it also raises concerns that certain medical conditions might be excluded from PIP entirely if deemed not severe or long-term enough, potentially leaving individuals with those conditions without access to financial support despite struggling significantly.