Four ways PIP cash payments could change in major shake-up – from vouchers to one-off grants
DISABILITY benefits could soon change as the government is proposing a major shake up of payments.
Mel Stride, the Work and Pensions Secretary, set out his plans to overhaul how personal independence payment (PIP) works.
The new “Modernising Suppor for Independent Living: Health and Disability” green paper proposes changing the PIP eligibility criteria and assessments.
The plans, which will be consulted on over the coming months, also include suggestions to “move away from a fixed cash benefit system“.
The consultation will run for 12 weeks, closing on July 23.
The changes proposed by the could come into force if the Conservative Party win the General Election, but they are not set in stone and could change.
Households suffering from a long-term illness, disability or mental health condition can get extra help through PIP.
The maximum you can receive from the Government benefit is £184.30 a week.
PIP is for those over 16 and under the state pension age, currently 66.
Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around
The new green paper put forward suggestions for four different types of support for PIP claimants, other than cash.
This could mean that people with some conditions will no longer receive regular payments, but instead will get improved access to treatment if their condition does not involve extra costs.
We’ve explained how your payments may change in future. However, even if these go ahead, any change would be some time off, sometimes years, as they have to be passed in to law.
CATALOGUE SCHEME
One proposal is a catalogue shop scheme.
In this kind of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost.
This would usually work out better for equipment and aids rather than for service.
VOUCHER SCHEME
Another option is through a voucher scheme.
In this kind of scheme, disabled people could receive vouchers to contribute towards specific costs.
This scheme could work for both equipment, aids and services.
What is a green paper?
GREEN Papers set out for discussion through a consultation.
These contain proposals which are still at a formative stage.
Not all discussion papers are published and put on general release.
Some are sent only to a predetermined list of consultees.
This is a matter solely for the department concerned.
White Papers are issued by the government as statements of policy and follow from Green Papers.
These often set out proposals for legislative changes, which may be debated before a Bill is introduced.
Some White Papers may invite comments.
A Bill is a proposal for a new law, or a proposal to change an existing law that is presented for debate before Parliament.
Bills are introduced in either the House of Commons or House of Lords for examination, discussion and amendment.
When both Houses have agreed on the content of a Bill it is then presented to the reigning monarch for approval (known as Royal Assent).
Once Royal Assent is given, a Bill becomes an Act of Parliament and is law.
RECEIPTS-BASED SYSTEM
A receipt-based system would involve claimants buying aids, appliances, or services themselves and then providing proof of their purchase to claim back a contribution towards the cost.
This could work similarly to Access to Work, which provides grants for equipment, adaptations, and other costs to help disabled people start and stay at work.
However, a receipt-based system could be more difficult for those on the lowest incomes to get support as they may not have enough cash to purchase what they need in their own right.
ONE-OFF GRANTS
These could contribute towards specific, significant costs such as for home adaptations or expensive equipment.
It could involve a person supplying medical evidence of their condition to demonstrate the need for equipment or adaptations.
This would work in a similar way to the voucher scheme, albeit with claimants receiving cash grants.
OTHER CHANGES
The government has also proposed changing PIP eligibility criteria to better reflect how conditions affect a claimant’s daily life.
It will also look at making PIP assessments more closely linked to someone’s conditions.
This could include removing assessments entirely for some conditions supported by medical evidence
Why are the Tories looking to reform welfare?
RISHI Sunak is trying to appeal to core Tory voters by warning that future rises in welfare spending are fiscally unsustainable.
The PM, who faces the prospect of heavy losses in the local elections on Thursday, had already signalled that if re-elected at the next general election, he will do more on welfare reform.
And today’s move is all about convincing people that he’s the right choice to keep the economy stable and sustainable.
It also sets a clear dividing line with Labour – which typically calls for more generous public spending and welfare support.
Shadow Work and Pensions Secretary Liz Kendall last month said a life on benefits will not be an option under Labour as she set out plans to reduce the number of young people not in work, education or training.
But the party has not yet revealed what form the tougher measures on universal credit would take – giving the Tories the upper hand in pushing their narrative of strong economic management and welfare reform.
By Martina Betteto – political correspondent at The Sun
Who can get PIP?
PIP is available to those aged 16 or over who have not yet reached the state pension age – which is currently 66.
You must have lived in England or Wales for at least two out of the last three years, and be in one of these countries when you apply.
The process is different in Northern Ireland, and there are additional rules if you live abroad or if you’re not a British citizen.
In Scotland, you will need to apply for Adult Disability Payment (ADP) instead.
You must also have a health condition or disability where you either have had difficulties with daily living or getting around – or both – for three months.
And, you expect these difficulties to continue for at least nine months (unless you’re terminally ill with less than 12 months to live).
Difficulties with daily living can include:
- Preparing or eating food
- Washing, bathing and using the toilet
- Dressing and undressing
- Reading and communicating
- Managing your medicines or treatments
- Making decisions about money
- Engaging with other people
You can claim PIP at the same time as other benefits, except the armed forces independence payment.
If you receive constant attendance allowance you will receive less of the daily living part of PIP.
If you get war pensioners‘ mobility supplement you will not get the mobility part of PIP.
How much can you get on PIP?
The payments are made up of two parts for living and two for mobility.
Plus, for each component, there is a standard and an enhanced rate.
How much you get also depends on how your condition affects you.
Payments increased this month and we outline below how much they have gone up by:
Daily Living Component
- Standard: £72.65 per week (up from £68.10) – increase of £236.60 a year
- Enhanced: £108.55 per week (up from £101.75) – increase of £353.60 a year
Mobility Component
- Standard: £28.70 per week (up from £26.90) – increase of £93.60 a year
- Enhanced: £75.75 per week (up from £71) – increase of £247
PIP claimants can only claim one of each of the elements.
The increases means that if you qualify for the enhanced daily living and mobility components of PIP, you’ll get £184.30 a week, £798.63 a month and £9,583.60 a year.
This is an increase of £11.55 a week, £50.05 a month and £600.60 a year.
If you get the standard components of both you’ll get £101.35 a week, £405.40 a month, and £5,270.20 a year.
How do I apply for PIP?
HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP)
You can make a new PIP claim by calling the Department for Work and Pensions (DWP) on 0800 917 2222.
This is the government department tasked with paying out benefits to millions every year.
There are also other ways to claim if you find it difficult to use a telephone. See Gov.UK for more information.
When you claim, you’ll need:
- Your contact details
- Date of birth
- National Insurance number
- Bank or building society account number and sort code
- Your doctor or health worker’s name, address and telephone number
- Dates and addresses for any time you’ve spent abroad, in a care home or hospital
Someone else can call on your behalf, but you’ll need to be with them when they call.
You’ll then be sent a form to fill in, after which you’ll be invited for an assessment or your health or social care worker will be asked for information.
After this, you’ll be sent a letter telling you if your claim has been successful.
You can read Citizens Advice’s help on preparing for an assessment.