The DWP could replace PIP payments with vouchers or a catalogue

A bold new plan from the Department for Work and Pensions (DWP) could see people claiming Personal Independence Payment (PIP) receive vouchers instead of cash.

The proposals, which have been set out in a new Green Paper, also include changing the eligibility criteria for PIP, redesigning the assessment process so that it is more linked to a person’s condition.

Following the annual update on 8 April, a successful PIP claim is now worth between £28.70 and £184.30 each week in additional financial support. As the benefit is paid every four weeks, it amounts to between £114.80 and £737.20 per pay period.

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But the alternatives proposed in Modernizing Independent Living Support: Health and Disability Green Paper outline a move away from a fixed monthly cash transfer system that includes vouchers, a cash-in system, one-off grants and purchases for products or services. through a catalog scheme, as reported by the Daily Record.

There are currently no restrictions or provisions on how PIP claimants can spend their money. However, the DWP states that in the decade since its launch, the nature of health and disability has changed and “caseloads and benefit costs have increased significantly, reflecting an increasing prevalence of self-reported disability”.

DWP Mel Stride recently explained: “We think the time is right to look again at ensuring that government support for people with health and disability is focused where it is most needed. We also believe that there could be better ways of supporting people to live independent and fulfilling lives, and this is the idea behind this Green Paper.

“This could mean that financial support is better targeted at people who have specific additional costs, but it could also involve improved support of other types, such as physical or mental health treatment, leading to better outcomes .”

The Green Paper adds that the DWP wants to consider whether supporting people through direct and regular cash payments is still the best approach, or whether other approaches would better target their resources – delivering the right support to the people who need it most .

It goes on to give examples of how disability benefits are provided in other countries:

• new zealand – individuals present supporting medical evidence verifying their health status and also provide estimates of additional costs
• Denmark – premiums for additional costs are determined on a case-by-case basis and issued by the local government

Alternatives to regular cash payments could include:

• Catalogue/store scheme: In this type of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost. This would probably work better for equipment and aids than for services.
• Voucher scheme: in this type of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for equipment/aids as well as services.
• A receipt-based system: this would involve applicants purchasing aids, appliances or services themselves and then providing proof of their purchase to claim back a contribution to 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 get into and stay in work.
• Single Grants: these could contribute to specific, significant costs, such as home adaptations or expensive equipment. It could involve a person providing medical evidence of their condition to demonstrate the need for equipment or adaptations.

The consultation accompanying the Green Paper aims to determine whether these alternative models could help people with the additional costs of disability or ill health.

Other forms of support could include health care, the provision of social services and respite, which are also said to be important in helping people achieve their full potential and live independently.

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