Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Rejected
Paragraph: 49
We recognise that reducing waiting times is vital to ensuring people get the support that...
Recommendation
We recognise that reducing waiting times is vital to ensuring people get the support that they need. However, we are keenly aware that delays are still happening. In line with our recommendation that the Department set clearance time targets, we also recommend that where these are missed, PIP applicants are paid an assessment rate for the remaining time until their claim is decided. This should be non-repayable 90 Health assessments for benefits in the event that a claim is disallowed. Where an award is made, claims should continue to be backdated at the rate awarded, less any amount paid at assessment rate.
Government Response Summary
The government rejected the recommendation to pay PIP applicants an assessment rate if clearance time targets are missed, stating that PIP is not an income replacement benefit and payment could lead to inappropriate expenditure of public funds, as around half of new PIP claims referred for assessment do not receive an award.
Paragraph Reference:
49
Government Response
Rejected
HM Government
Rejected
Income replacement benefits such as Employment and Support Allowance have a rate of payment during the assessment phase because the Department can establish a need at the outset—being out of work. PIP is not an income replacement benefit. It is paid to help with the additional costs that arise from needs that are determined at assessment, rather than a life circumstance or diagnosis. PIP requires an assessment to determine entitlement and which of the nine possible award outcomes is appropriate. As such, payment of an assessment rate for PIP applicants, which would be non-repayable in the event that a claim is disallowed, could lead to inappropriate expenditure of public funds. Around half of new PIP claims that are referred for assessment do not receive an award. Dependent on circumstance an individual may be able to receive support from Universal Credit which provides financial support to people in or out of work who have a low income.