DWP shake-up of PIP assessments and payment levels urged in new reforms

Labour is expected to make major changes to the benefits system after reviewing proposals to replace PIP payments with vouchers

The Department for Work and Pension has been urged to improve PIP assessments and offer increased financial support as new reforms are expected in the coming months. Labour has been reviewing responses to proposals put forward under the previous government that could include replacing PIP payments with vouchers to rein in escalating costs.

DWP Minister for Social Security and Disabilities Sir Stephen Timms has confirmed that several changes are already underway. As the first stage of transforming the PIP system, assessments to decide if applicants are eligible and how much they'll receive are now being carried out by the same contractor in any given geographical region. This streamlining will eventually lead to the rollout of a new nationwide Health Assessment Service in five years.

More case managers have been taken on to deal with the huge demand for PIP and free up staff to review existing claims awaiting review. In addition, some decisions are being made on reviews without an assessment, if enough evidence is available.

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Sir Stephen added that most assessments are now carried out over the phone and those with the most severe conditions, who are on the highest level of PIP support, are given an "ongoing" award of the benefit with no need for reassessment except for a "light touch review" every 10 years.

Campaigners have welcomed the DWP's moves to hire more staff to deal with PIP applications and cut delays in reviewing existing claims. However, they say more needs to be done to improve assessments and payment levels.

More than 3.6 million people are receiving Personal Independence Payment, with claims for mental health conditions rising by a third since the pandemic. The maximum offered in Personal Independence Payment is £737 every four weeks. Around 37 per cent of claimants receive this highest amount of support for being on the enhanced levels both for daily living needs and mobility needs.

Disability charity Scope says current PIP payments are not enough to cover costs. The charity's research found that on average, disabled households need an additional £1,010 a month to reach the same standard of living as non-disabled households.

The organisation praised the DWP for its efforts to boost staffing and reduce waiting times for decisions, saying "it's good to see the DWP pulling its finger out" as PIP has been "plagued by backlogs for too long" but says more still needed to be done.

David Southgate, Policy Manager for Scope, told Yahoo News: "It’s also important that they put more effort into getting the assessment right, and getting disabled people the support they need to live their lives.

“Life costs more if you are disabled. Scope research shows that these costs add up to on average £1,010 a month for disabled people to have the same standard of living. The low amount that PIP provides doesn't go far enough as it is."

Figures show that around two-thirds of people receiving PIP also get additional financial support from incapacity payments offered by Universal Credit or Employment and Support Allowance (ESA) to help with their living costs.

Those on ESA who don't work because of health issues receive at least £138 a week, with disability premiums of up to £81.50 a week on top. Universal Credit claimants can get an additional amount of £416 a month if they're signed off from work, on top of the standard allowance and any other elements awarded for children, caring responsibilities and housing costs.

Labour is expected to announce changes to some aspects of the benefits system as part of a new White Paper called 'Get Britain Working' this autumn. A new Labour Market Advisory Board advising the government on how to tackle "the greatest employment challenge for a generation" met Work and Pensions Secretary Liz Kendall for the first time in early September.

Further news on benefit changes is also likely to be part of the Chancellor's first Budget on October 30. Figures show 9.4 million people in the UK are economically inactive, with a near record 2.8 million people out of work due to long-term sickness. But it's been reported that reforms to disability benefits such as PIP won't be announced until spring 2025.

A DWP spokesperson said: "Championing the rights of disabled people, so that their views and voices are heard, is at the heart of this government, and we are committed to ensuring disabled people and people with health conditions can access financial support through PIP in a timely manner."

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