Home Housing newsDWP faces calls to means-test PIP amid disability benefits review

DWP faces calls to means-test PIP amid disability benefits review

by David Jones

The Department for Work and Pensions has been urged to consider means-testing PIP as part of the Timms Review

The Department for Work and Pensions (DWP) has faced calls to explore means-testing for Personal Independence Payment (PIP) as part of the Timms Review.

During DWP oral questions in the House of Commons on Monday, Conservative MP Joy Morrissey questioned whether eligibility for the disability benefit ought to factor in a claimant’s income, suggesting escalating expenditure warrants examination of the matter. PIP is a non-means-tested benefit, meaning entitlement depends on how a person’s long-term health condition or disability impacts their daily living and mobility rather than their income, savings or employment status.

A successful claim for PIP is valued between £30.30 and £194.60 weekly and as payments are issued in arrears every four weeks, this equates to awards ranging from £121.20 to £778.40, reports the Daily Record.

The Beaconsfield MP stated: “The increased PIP costs are expected to add an extra £5 billion to the welfare budget this year. As the TaxPayers’ Alliance has highlighted, the number of households earning over £100,000 and getting PIP has doubled to 200,000 claimants. Will the Minister (Sir Stephen Timms) make an assessment of the potential merits of means-testing PIP to ensure targeted support?”

In response, Disability and Social Security Minister Sir Stephen Timms suggested the UK Government had no intention of altering the established principle that PIP should not depend on a person’s financial circumstances. He told MPs: “Together with disabled people, we are co-producing a review of PIP to ensure that it is fair and fit for the future.

“The review’s terms of reference reflect the view of successive Governments that PIP should be a non-means-tested cash benefit for people both in and out of work, because anybody can incur additional costs as a result of long-term ill health or disability.”

The UK Government announced the independent review of PIP earlier this year, following the decision to scrap proposed reforms that would have tightened eligibility criteria for the benefit.

The review is being conducted alongside disabled people, charities and various other stakeholders, and is anticipated to examine how the benefit can more effectively address the needs of claimants while ensuring its long-term financial sustainability.

The review is expected to conclude by autumn, with an interim report due before parliament rises for the summer recess on July 16.

PIP currently provides additional financial assistance to more than 4 million people across England and Wales. The benefit supports working-age adults living with a long-term physical or mental health condition or disability, helping to cover the extra costs they may encounter as a result of their condition.

Unlike means-tested benefits such as Universal Credit or Pension Credit, PIP is unaffected by a claimant’s wages, savings or wider financial situation. Instead, entitlements are determined by how a person’s condition impacts their capability to perform daily tasks and move about.

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