More than 3.5 million individuals receiving Personal Independence Payment (PIP) could learn as early as October if proposed changes will be implemented by the new Labour Government.
The Department for Work and Pensions (DWP) is set to hold its next oral questions session in the House of Commons on October 7, marking the first time the newly appointed ministerial team, led by Liz Kendall, will face queries from the opposition, reports the Daily Record.
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. For money-saving tips, sign up to our Money newsletter here
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Shortly after the consultation closed on July 22, the new 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”.
In a more recent written response to Labour MP Mary Kelly Foy’s question 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 said: “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.”
“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.”
Among the proposed changes is the idea of replacing regular cash PIP payments, which can amount up to £737.20 every four weeks, with alternatives such as vouchers, one-off grants, a receipt-based system, or the option to select support aids from a catalogue.
Other suggestions include revising the eligibility criteria for PIP, overhauling the assessment process, and shifting the financial responsibility for PIP onto the NHS and local councils.
Alternatives to regular PIP cash payments
The Green Paper outlines potential alternatives to the standard PIP cash payments, suggesting that the DWP could explore different methods of supporting individuals with disabilities and long-term health conditions beyond just providing regular cash payments. These could involve various models to continue covering the additional costs faced by these individuals.
These include:
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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.
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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.
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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.
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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 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 of more than £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.
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