The Labour government and Department for Work and Pensions (DWP) have set out plans to significantly reduce the number of people who receive Personal Independent Payments (PIP). Earlier this week, Work and Pensions Secretary Liz Kendall outlined a scheme to get more people back to work and bring down the cost of the soaring benefits bill.
Tightening the eligibility for PIP is a key reform. The current rate of payment is £72.65 a week or an enhanced payment of £108.55 a week depending on the extent of their disability. Eligible individuals are also entitled to supplementary mobility payment of £28.70 or £75.75 at the enhanced level weekly.
To be able to qualify for the payments, people are required to take part in a series of tests on their ability to perform basic tasks. For example, dressing, washing and feeding themselves. They are then scored on how able they are to complete them.
The current system allows for a relatively low threshold of impairment to get the payments. However, the new welfare reforms will require for a more significant impairment, scoring at least four points on one of the ten tests.
In the UK, there are over 3 million people currently claiming PIP, costing a staggering £21.8bn. The government has labelled this as “unsustainable” as the current growth rates would mean 4.2million people would receive payments in four years.
To be entitled to future PIP payments, individuals will have to demonstrate impairment in at least one category.
These are: preparing food, eating and drinking, managing therapy or monitoring a health condition, washing and bathing, managing toilet needs or incontinence, dressing and undressing, communicating verbally, reading, engaging with others face to face and making budgeting decisions.
Labour say the changes would put the welfare system “back on a more sustainable path” as the measures are expected to save more than £5 billion a year in 2029/30.
Ms Kendall also announced she would scrap work capability assessments, freeze the health element rates of Universal Credit, and ramp up health work assessments to force those claiming benefits to prove they cannot work.
