Work and Pensions Secretary Pat McFadden has spoken about the future of Personal Independence Payments
Pat McFadden, Secretary of State for Work and Pensions, has spoken today about the future of the DWP benefit PIP – file image(Image: Parliament TV)
The head of the DWP has today issued a warning over the future of the PIP benefit. Secretary of State for Work and Pensions Pat McFadden raised the alert on Friday as a significant review into Personal Independence Payment (PIP) nears its conclusion.
In his most detailed remarks to date on PIP’s future, Mr McFadden indicated he wanted to see more flexible assessments and additional requirements for those claiming sickness benefits to engage with support aimed at preparing them for employment.
Just over four million people were entitled to claim PIP, the main disability benefit, in July. It can assist with additional living costs for those with a long-term physical or mental health condition or disability who experience difficulty carrying out certain everyday tasks or getting around due to their condition.
The total of 4.1m represents roughly a seven per cent increase on the previous year, according to recent DWP figures — and is almost double the 2.2m recorded in 2019-20. Sir Stephen Timms, who is heading the review of the benefit, said in an interim report this summer that “Personal Independence Payment is no longer fit for purpose”.
Sir Stephen warned that it is struggling to keep up with how disability, health and work have evolved over the past decade. Sir Keir Starmer did attempt to introduce cuts to PIP by tightening eligibility criteria – before a rebellion among Labour MPs forced him to back down.
Despite that setback, Mr McFadden has today warned that PIP must be reformed. He told the Financial Times he was troubled by a “very sharp increase” in people claiming PIP.
A review of the benefit was likely to lead to “change in assessment in the future” to deal with a greater variety of conditions, McFadden said. The number of claimants is projected to hit 5.4m by 2030-31.
The government says much of this rise has been driven by a surge in claims linked to conditions such as depression and anxiety. Mr McFadden said: “A diagnosis should not lead to the conclusion that that person should then spend the rest of their life on benefits. I think for a lot of people work and activity is part of the answer, not something to fear.”
He argued there was “a strong case” for a distinct benefits system for young people, noting that those under 25 are now less likely to come off sickness benefits than those aged over 55.
McFadden added that he was looking to the Netherlands, where Neet (Not in Education, Employment or Training) rates are less than half Britain’s. He told the FT: “They have a distinct system for people under the age of 27 . . . there’s a good argument for a specific system for the young.”
The Netherlands has the lowest proportion of people not in education, employment or training across the OECD. That figure has remained consistently below 5% since 2015, with the most recent 2024 data recording a NEET rate of 3.6% – equivalent to 1 in 20 young people. By contrast, 1 in 8 young people in the UK are classified as NEET.
The Youth Futures Foundation said in a report examining the Dutch system late last year: “Wage subsidies and other demand-side employment incentives are key components of the Dutch approach. Active labour market programmes, including wage subsidy schemes, are underpinned by strong employer engagement. This ensures that employers are actively involved in shaping the support measures but are also incentivised to participate.”
The current PIP scheme sees claimants assessed by a health professional. They look at a person’s ability to carry out a range of daily living activities and mobility activities in a scoring system that has been criticised by some campaigners and claimants as unfair.
McFadden told the FT that benefits should come with a “package of support” and “an expectation to engage for people who can” with sanctions as a “last resort”. The minister also said he had “drawn a line” under last year’s attempt at reforms, and said “we’re having a different conversation this year”.
He went on to say: “Attempts at welfare reform, where you simply pick a number and then add a policy, is often not the best way to do it.” The Timms Review’s interim findings in July revealed that while PIP is widely regarded as a valuable cash benefit, it is failing to function as intended for disabled people or wider society.
Timms Review’s interim report found flaws in PIP system
It said: “While many disabled people say that PIP is vital in helping them meet the extra costs of disability and participate in everyday life, others said PIP creates barriers to participating fully in work, social and community life. This is particularly true for people with fluctuating conditions, less visible conditions or multiple conditions.”
It also highlighted that the claims process, operating under assessment criteria drawn up more than a decade ago, was viewed negatively by 90% of respondents. The report said people described the system at times as “dehumanising”, “degrading” and “stressful”, with the use of supporting evidence deemed too frequently inconsistent. Just 5% of responses regarding the process were positive.
The report also uncovered low levels of trust in the system and the need for it to be rebuilt both for disabled people and those with long-term conditions, as well as for the taxpayer.
The final report is expected to be published this autumn. For further information on PIP, including eligibility criteria and how to make a claim, visit the dedicated government web page on the benefit.
