A major DWP overhaul could affect thousands of disabled people across the UK. Many have been facing lengthy delays in getting their needs assessed by the Department for Work and Pensions (DWP) - but a change by the new government could see these waiting times fall.
As the backlog of reviews and assessments grows, the DWP has begun a recruitment drive for case managers to tackle the increasing workload. Labour Minister Sir Stephen Timms addressed the shift in policy during a parliamentary session, confirming that the process will be expedited as case managers will now "decisions on reviews, avoiding the need for a functional assessment."
The modification in how disabled claimants are evaluated for PIP comes as the DWP restructures its contracts for regional benefit assessments. These contracts are either being internalised or merged into single private providers for different regions of England to enhance efficiency.
Despite this, the DWP has acknowledged that it may "take some time" for the new providers to manage the growing volume of required assessments, especially with the surge in long-term disability and sickness cases. There are currently around 3.4 million individuals claiming Personal Independence Payment (PIP), which offers financial support to those with disabilities and is dispersed in two tiers: a standard rate of £290 per month, while the enhanced rate stands at £434. However, claimants are grappling with significant delays, some enduring months-long waits for assessments or reviews for the higher payment tier, reports the Manchester Evening News.
In response to issues raised about the delay, Minister for Social Security and Disability, Timms, acknowledged there have been setbacks, explaining: "We continue to prioritise new claims to PIP to ensure claims are put into payment as quickly as possible. Unfortunately, this means many customers are waiting longer than expected for their review to be undertaken."
To combat the backlog, The DWP is looking to give benefits case managers greater authority to decide on PIP reviews and assessments, empowering them to make judgement calls without necessarily requiring medical professional input.
Timms elaborated on the new approach, stating that these decisions by case managers will be made "where sufficient evidence/information is available," promising this could result in claimants receiving "a decision faster" than under current procedures. He also noted that majority of PIP evaluations now occur via telephone conversations, an adjustment aimed at expediting the entire assessment procedure.
According to the forum Benefits and Work, these alterations signify "more PIP reviews but fewer assessments" for claimants. However, they also highlighted that a DWP trial of these changes earlier this year concluded that "the system worked best if consultation with a health professional took place in every case."
The new Labour DWP administration has also implemented changes so that claimants with severe health conditions and disabilities are no longer subject to unnecessary reviews. Minister Timms stated: "We've introduced a change for customers with the most severe conditions, on the highest level of support, who now receive an ongoing PIP award which is only subject to a light touch review every 10 years."
PIP Cuts Could Be Imminent as DWP Seeks to Reduce Costs
The Institute for Fiscal Studies (IFS) has warned that Personal Independence Payment (PIP) claimants could face immediate cuts to their benefits as part of efforts to manage spiralling costs. Labour is exploring various measures to tackle the increasing expense of disability and incapacity benefits, which may involve reducing the amounts awarded, reports YorkshireLive.
Chancellor Rachel Reeves has indicated that difficult choices lie ahead, with the first Budget at the end of October under a new government set to involve "difficult decisions" on tax, spending, and welfare. This comes after earlier discussions about reining in PIP costs, including proposals to replace cash payments with vouchers.
While the IFS report does not specifically address the voucher scheme, it suggests that cutting benefit levels would be a straightforward way to control rising expenses, stating: "A very direct option would be to reduce the level of health-related benefits. This could be done almost immediately and deliver predictable savings."
However, the report also warns that any reductions in eligibility or benefit amounts would inevitably lead to lower incomes for those receiving health-related benefits, noting that individuals on disability benefits are more likely to experience poverty and material deprivation than other working-age adults.
The Institute for Fiscal Studies (IFS) has issued a warning that compensating for financial losses due to cuts could present significant challenges for some beneficiaries, especially those who are unable to work because of their conditions, potentially affecting their health. The Department for Work and Pensions' (DWP) Personal Independence Payment (PIP), the main disability benefit for individuals of working age, offers up to £737 monthly to over 3.6 million people.
Separate incapacity benefits are available for those whose health limits their ability to work, with Universal Credit providing an extra £416 per month to those classified as having 'limited capability for work and work-related activity' (LCWRA). Employment and Support Allowance (ESA) provides similar support for those unable to work, with payments of approximately £878 every four weeks.
However, thousands of ESA recipients are currently being moved to Universal Credit as part of a 'managed migration' from older benefits.
A report indicates that half of those receiving disability or incapacity benefits are claiming both types. The IFS suggests that the surge in PIP claims is due to the fact that it is not means-tested and is being used to supplement income because unemployment benefits are insufficient.
In response, campaigners have argued that "slashing" disability payments will only increase the hardships faced by millions.
The Institute for Fiscal Studies (IFS) has claimed that simply reforming disability benefits will not be enough to meet fiscal targets. The IFS explained: "Saving money by changing eligibility is difficult. The coalition government planned to reduce spending by replacing DLA (Disability Living Allowance) with PIP in 2013. In fact, spending grew faster following the introduction of PIP."
To address the issue of rising claim numbers, the institute recommends investing in the NHS and employment support programs for disabled individuals.
Although this approach, described in their new report, would incur significant initial costs, it could eventually lead to a decrease in benefits claims.
Alternatively, the IFS suggests the option to "do nothing", which might be regarded as "reasonable" if the increase in claims is due purely to worsening public health. Yet, this inaction would see health-related benefit spending soar by £15 billion by 2028.
James Taylor from Scope responded to the IFS labeling the surge in health-related benefit claims as a "fiscal headache" for the Government by saying: "There are 16 million disabled people in the UK, many are in work, some may want to work but have been denied opportunities and some may be unable to ever work. We should not be demonising disabled people for being unwell and regarding them as a burden on budgets."
"Government needs to take time to understand what is driving the rise in ill-health, why our public services are crumbling, and how best we can support those who are disabled. Going straight to slashing benefits will make life harder, not better, for millions of people."
Public Gives Mixed Response to Proposed PIP Reforms
The Department for Work and Pensions (DWP) has received a "mixed" reaction, with some responses being "consistently negative" from the public concerning proposed alterations to the Personal Independence Payment (PIP), as detailed in a recent consultation. Figures from the DWP indicate that there are currently a record number of PIP claimants - over 3.6 million people in Great Britain benefit from up to £737.20 every month.
SNP MP Chris Law posed a question to the DWP about whether the UK Government intends to carry out suggestions from the 'Modernising support for independent living: the health and disability green paper, introduced by the previous Conservative government in April. The consultation that followed put forward various welfare reform ideas, such as switching cash payments of PIP for different kinds of assistance including vouchers, one-time grants, a proof-of-purchase scheme, or selecting aid equipment from a catalogue.
Further suggestions include adjusting PIP eligibility criteria, revamping the assessment procedure, and transferring PIP expenses to the NHS and local councils.
In a formal response given to the Dundee West MP, the Minister for Social Security and Disabilities, Sir Stephen Timms MP, clarified that the consultation gathered upwards of 16,000 contributions within its 12-week lifespan, concluding on July 22.
He elaborated: "This demonstrates the depth of feeling about the previous Government's proposals. I thank the British public, as well as the numerous charities and organisations who responded on behalf of their members, for the time and effort taken to share their thoughts and views.", reports the Daily Record.
"Whilst engaging with responses, I can confirm that responses to the set of proposals on the reform of Personal Independence Payments was mixed and for some proposals consistently negative."
Mr Timms added: "We will be setting out our own plans for social security in due course and will fulfil our continued commitment to work with disabled people so that their views and voices are at the heart of all that we do."
Parliament is currently in recess until Monday, October 7, owing to the party conference season, but this date also coincides with the next scheduled DWP oral questions session in the House of Lords.
In what will be the first appearance of the new ministerial team under Liz Kendall, they will face scrutiny from the opposition benches - a session that could provide millions of PIP claimants with fresh insights into the Green Paper's proposals.
The Green Paper: A Look at Proposed Alternatives to Cash Payments
The Green Paper itself suggests that if the DWP were to explore different methods of supporting individuals with disabilities and long-term health conditions beyond regular cash payments, it could maintain contributions to their additional costs through various alternative models.
These include:
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Vouchers: Instead of receiving cash, claimants could receive vouchers for specific goods and services, such as groceries, transport, or healthcare.
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One-time grants: This would provide a lump sum payment to cover a specific need, such as adapting a home or purchasing equipment.
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Proof-of-purchase scheme: This would involve claimants purchasing goods and services themselves and then receiving reimbursement from the DWP.
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Selecting aid equipment from a catalogue: Claimants could choose from a pre-determined list of equipment, such as wheelchairs or mobility scooters.
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 losing out on additional Universal Credit of over £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.
