Upcoming DWP session could reveal future of PIP payments: Vouchers and grants may replace cash

Over 3.6 million individuals on Personal Independence Payment (PIP) could discover as early as next week if the proposed changes detailed in the 'Modernising support for independent living: the health and disability green paper' will be implemented under the new Labour Government.

The forthcoming Department for Work and Pensions (DWP) oral questions session is scheduled for Monday, October 7 in the House of Commons. This will be the first opportunity for the new ministerial team, headed by Liz Kendall, to answer questions from the Opposition benches.

An online consultation regarding the proposed overhaul of the benefits system, which includes abolishing the Work Capability Assessment and introducing a single tier assessment approach for all benefits, garnered over 16,000 responses. Shortly after the consultation closed on July 22, Minister for Social Security and Disabilities, Sir Stephen Timms MP, stated that the DWP will review the feedback while "considering our own approach to social security in due course".

READ MORE: DWP PIP changes as claimants to face new assessment rules

More recently, in a written reply to Labour MP Mary Kelly Foy's query about whether the DWP intends to "reform or replace" the Work Capability Assessment, Sir Stephen confirmed 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 elaborated: "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 Daily Record.

"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."

The proposed changes could see cash PIP payments of up to £737.20 every four weeks replaced with alternatives such as vouchers, one-off grants, a receipt-based scheme or selecting support aids from a catalogue.

Further proposals include revising eligibility criteria for PIP, overhauling the assessment process, and shifting PIP expenses to the NHS and local councils.

Alternatives to regular PIP cash payments

In exploring alternatives to the usual cash handouts of PIP, the Green Paper talks about other potential methods to assist individuals with disabilities and chronic health issues. These methods are outlined as means for maintaining contributions towards the extra expenses incurred by these individuals.

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 Green Paper outlines potential alternative methods for assisting individuals with disabilities and long-term health conditions beyond regular cash payments. These could involve different models to continue covering the additional costs faced by these individuals.

The Office for Budget Responsibility (OBR) has projected that the proposed alterations to the Work Capability Assessment could result in 424,000 individuals with severe mobility or mental health problems being denied additional Universal Credit exceeding £400 a month and protection from sanctions.

According to the OBR's estimates, only three per cent of these individuals would be expected to find employment within the following four years.

For those claiming benefits residing in Scotland, it's crucial to note that the suggested changes will not impact the 173,000 people currently receiving PIP or Disability Living Allowance (DLA), as they will transition to Adult Disability Payment (ADP) by the end of next year.