The DWP is to take a fresh look at the extra costs faced by PIP claimants as it plans major benefit reforms to reduce spending (Image: Getty)

DWP confirms new study of PIP claimants' spending ahead of fundamental reforms

by · Birmingham Live

A DWP minister has confirmed that a study will be carried out into what people need their PIP payments for and has now indicated the timeframe when it will announce the results. Personal Independence Payment can be awarded for the "extra living costs" of a disability or long-term mental or physical health condition but is not targeted at any specific bills.

A new update states that the DWP is to take a fresh look at the additional expenses faced by PIP claimants as it plans major benefit reforms to reduce spending. Claimants will be asked to provide information on their needs in the upcoming government survey.

Labour has made it clear that it aims to cut the "ballooning benefits bill" by supporting more disabled and unemployed people into work but has not yet detailed how it expects to do so. PIP spending is expected to grow by 63 per cent in the next five years from £21.6 billion in 2023/2024 to £35.3 billion in 2028/2029.

Each month there are 33,000 more claimants starting to receive the benefit, double the rate of new awards before the pandemic. The previous Conservative government had put forward proposals to rein in costs that included a controversial move to replace cash payments with vouchers.

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Liberal Democrat MP Steve Darling (Torbay) has raised the issue of how PIP is intended to help people with the extra costs of disability. He asked if there had been any assessment of how adequate the benefit was at meeting people's needs.

In the Liberal Democrats ' pre-election manifesto, the party did not indicate it wanted to make any changes to PIP payments but said that if it got into power, it would reform PIP assessments to make the process more transparent and stop "unnecessary reassessments."

Sir Stephen Timms, DWP Minister for Social Security and Disability, responded to the parliamentary question by confirming that Labour will be looking into what people spend their PIP on and has now revealed when the results of that study will be published.

Sir Stephen has indicated that the survey findings will be published in the summer of 2025. The DWP is also set to announce "fundamental reforms" of health and disability benefits sometime in 2025, as mentioned in the Chancellor's October Budget. More precise dates haven't been given at this stage.

In his written reply to the MP's question, Sir Stephen said: "Personal Independence Payment (PIP) provides a contribution to the extra costs that may arise from a disability or health condition. There is no objective way of deciding what an adequate level of PIP should be, as everyone has different requirements reflecting their own circumstances and priorities.

"DWP pays close attention to estimates of the extra costs faced by disabled people; including academic research, analysis by Scope, and DWP's own commissioned research on the Uses of Health and Disability Benefits from 2019.

"In order to improve the evidence in this area, DWP is now undertaking a new survey of Personal Independence Payment customers to understand more about their disability-related needs. This project has a methodological advisory group including representatives of disabled people's organisations, disability charities and academic experts. It is expected to produce findings in Summer 2025."

Labour wants to trim spending on disability benefits, and although it has said it won't be responding to a consultation under the previous government that included the option of replacing PIP payments with vouchers, it has not categorically ruled the idea out altogether.

Work and Pensions Secretary Liz Kendall said: "I will be putting forward our own proposals to reform sickness and disability benefits. This is extremely difficult and I know people really want more detail, but we won't do that until we're absolutely ready and have had the proper discussions with people."

When pressed on whether she would scrap the vouchers proposal, Ms Kendall expressed her concerns but stopped short of making a clear commitment, saying: "I was very struck particularly by the comments people made around shifting support to vouchers and where many organisations said their real concern was that it took away people's autonomy and particularly when services are so stretched and tight."

Meanwhile, DWP and HMRC benefits including PIP, Disability Living Allowance and Universal Credit are to go up by 1.7 per cent from next April in line with the September inflation figure. The State Pension is in line for a higher increase of 4.1 per cent in accordance with the triple lock, with a similar rise to be applied to Pension Credit Guarantee Credit, Widow's Pension and Widower's Pension.

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