Source · Select Committees · Work and Pensions Committee
Recommendation 7
7
Accepted
Paragraph: 99
DWP fails to clarify PIP's intended contribution to disabled claimants' extra costs.
Conclusion
DWP has not clearly stated the extent to which PIP should contribute towards the extra costs incurred by claimants with a health condition or disability. We heard that for some claimants, the shortfall in support provided was significant enough to worsen physical and mental health outcomes, as well as to increase their likelihood of experiencing financial hardship
Government Response Summary
The government clarifies that Personal Independence Payment (PIP) is intended to provide a contribution towards extra costs, giving recipients flexibility, and highlights significant spending on PIP and additional Cost of Living Payments for disabled people.
Paragraph Reference:
99
Government Response
Accepted
HM Government
Accepted
In 2023/24 we spent £21.6bn on PIP and this is expected to grow by 63% to £35.3bn in 2028/29. This is a massive financial contribution from the Government to support people with a health condition or disability. Personal Independence Payment (PIP) is intended to provide a contribution towards the extra costs disabled people face as a result of their disability with recipients then having the choice and flexibility to prioritise according to their own needs. It is paid in addition to the other support which disabled people may have or be able to access including earnings, savings, the income-related benefits (and any additions or premiums paid because of receiving PIP) or NHS and Local Authority support. The PIP assessment criteria were developed over a decade ago in conjunction with independent health, social care, and disability experts, and were designed to increase the consistency, fairness, and transparency of the benefit. Early development work considered various ways to identify individuals with the greatest need, including assessing additional costs incurred. Benefit levels in the UK overnment’s response to the Committee’s Second eport 7 At the time, the Government concluded that the best approach would be to identify proxies for an individual’s ability to participate in everyday life. Twelve key activities which are fundamental to everyday life were chosen to provide a more holistic assessment of the impact of a health condition or impairment on an individual’s ability to participate and enabling us to target PIP on those who face the greatest barriers to living an independent life. In recognition of the additional costs that disabled people have faced over the last couple of years, the Government paid around 6 million disabled people a Disability Cost of Living Payment of £150 in 2022 and a further Disability Cost of Living Payment of £150 to around 6.4 million disabled people in 2023. For the payments made in 2023, estimates1 suggest nearly 60% of individuals that received disability benefits would have received additional support through the means-tested benefit payments Cost of Living Payment, and over 85% will receive either or both of the means-tested and pensioner Cost of Living Payment.