DWP could confirm PIP and Work Capability Assessment changes in weeks | Personal Finance | Finance

More than 3.5million individulas on Personal Independence Payment (PIP) could learn whether cash payments will be replaced by vouchers as early as next month.

The proposal was drawn up by Rishi Sunak’s government in a crackdown on benefits aimed at saving billions and now Labour must decide on whether to continue with the plan.

The move was outlined in the ‘Modernising support for independent living: the health and disability green paper’. Now ministers, including Secretary of State in the Department for Work and Pensions (DWP) Liz Kendall, will have to answer questions over the future of the policy in Parliament on October 7, reports the Daily Record.

An online consultation regarding the proposed overhaul of the benefits system, which includes abolishing the Work Capability Assessment and introducing a single-tier assessment approach for all benefits, garnered over 16,000 responses.

Shortly after it concluded on July 22, the new Minister for Social Security and Disabilities, Sir Stephen Timms MP, stated that the DWP will review the feedback while “considering our own approach to social security in due course”.

More recently, in a written reply to Labour MP Mary Kelly Foy’s question about whether the DWP intends to “reform or replace” the Work Capability Assessment, Sir Stephen confirmed that the government is “committed to reforming or replacing the Work Capability Assessment, alongside putting in place a proper plan to support disabled people into work”.

He elaborated, “We will also give disabled people the confidence to start working without fear of an immediate benefit reassessment if it does not work out. More disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.”

“These plans are central to our missions of kickstarting economic growth and breaking down barriers to opportunity. This government is committed to championing the rights of disabled people and to the principle of working with them, so that their views and voices will be at the heart of all that we do.”

The prospective modifications include transitioning from cash PIP payments of up to £737.20 every four weeks to a variety of alternative supports, such as vouchers, one-time grants, a system based on reimbursement, or selecting aids from a catalogue.

Other suggested changes involve reassessing PIP eligibility criteria, reviewing the assessment process, and potentially shifting PIP-related costs to the NHS and local councils.

Exploring Alternatives to Standard PIP Cash Payments

The Green Paper sets out possibilities for supporting individuals with disabilities and long-lasting health conditions beyond just standard cash payments, suggesting continued assistance for additional expenses through various models, which may include:

• 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 likely work better for equipment and aids rather than for services.
• Voucher scheme: in this kind of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for both equipment/aids and for services.
• A receipt-based system: this 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 in a similar way to Access to Work, which provides grants for equipment, adaptations, and other costs to help disabled people to start and stay in work.
• 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.

The Office for Budget Responsibility (OBR) has projected that the proposed alterations to the Work Capability Assessment could result in 424,000 individuals with severe mobility or mental health problems being denied additional Universal Credit of more than £400 monthly and protection from sanctions.

According to the OBR’s estimates, only three per cent of these individuals would be expected to find employment within the following four years.

For those claiming benefits in Scotland, it’s crucial to note that the suggested changes will not impact the 173,000 people currently receiving PIP or Disability Living Allowance (DLA), as they will transition to Adult Disability Payment (ADP) by the end of next year.