DWP: PIP overhaul plans tackled amid Labor vow to ‘rebuild’ benefits system

The Department for Work and Pensions (DWP) has signaled its intention to ‘overhaul’ the welfare system, with a focus on the Personal Independence Payment (PIP) scheme, under the new Government. A public consultation, based on a Green Paper proposing reforms to PIP, including the controversial idea of ​​replacing cash payments with vouchers, remains open.

Labour, after securing victory in the general election, is keeping the consultation window open until Monday evening, July 22. Liz Kendall, the newly appointed work and pensions secretary, has yet to outline Labour’s approach to managing the rising costs of PIP and tackling the issues. the Conservative government’s previous reform plans initiated by former Prime Minister Rishi Sunak.

In a move coordinated by anti-poverty charity Z2K, a letter signed by 10 different organizations called on him to “redesign” Tory strategies for both PIP and Universal Credit, which could reduce payments and put more emphasis on strong on employment.

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Introduced in 2013, the Personal Independence Payment was designed to replace the Disability Living Allowance as a more sustainable benefit designed to support disabled people to live independently by helping to meet their additional expenses. However, the volume of claims and rising costs associated with PIP are causing concern.

There are currently 3.5 million people receiving PIP, including 2.6 million of working age, with around 80,000 new claims processed each month. Approvals for PIP applications have risen to around 33,000 each month, more than double the rate seen before the pandemic, reports Birmingham Live.

Forecasts show that spending on PIP will increase by 63%, from £21.6 billion in 2023/24 to £35.3 billion by 2028/29.

The DWP partly attributes this rise to a significant increase in the number of people receiving PIP for mental health issues, with monthly premiums doubling from 2,200 to 5,300 since 2019. Mental health conditions, which account for 39% of all PIP claims, include anxiety, depression, PTSD, bipolar disorder, OCD and schizophrenia.

Addressing concerns raised by disability claimants and advocates about the PIP reforms, a DWP spokesperson told the BBC: “Disabled people and those with health conditions deserve equal rights to live fulfilling lives, just like everyone else the others. I want us to work on that, which is why we’re going to rebuild a system that works for everyone and fuels growth.”

Meanwhile, disability equality charity Scope called on the government to scrap the “dangerous” proposals and instead come up with a more positive approach to improving how PIP works for people with disabilities.

Disability equality charity Scope has welcomed potential changes set out in the King’s Speech to encourage more disabled people to re-enter the workforce. PIP, a benefit that is not means-tested and paid regardless of whether a recipient works or not, still sees only 14% of its claimants employed.

James Taylor, Director of Strategy at Scope, responded positively to Labour’s proposed Work Rights Bill, saying: “Extending sickness pay eligibility and offering flexible working from day one will be a boost for disabled workers. on the government’s agenda We know that what gets measured gets done, and forcing companies to report these figures is an important step.”

He also suggested: “Next steps should include reporting the number of disabled people employed by companies, average earnings and the number of disabled people in each wage category.”

Highlighting ongoing problems with employment inequality, Labour’s election manifesto stated: “Too many people are unemployed or not earning enough. Long waits for treatment of health conditions, especially mental health, contribute to increasing economic inactivity. Labor will reform jobs. support so as to drive growth and opportunity.”

“Labour will work with local areas to create plans to support more disabled people and those with health conditions at work. We will transfer funds so that local areas can form a common job, health and skills offer for local people. We will tackle the Delay in Access to Work applications and give disabled people the confidence to start working without the fear of an immediate benefit reassessment if it doesn’t work.”

It also promised “an adequate plan to support disabled people to work”.