DWP update on replacing monthly PIP cash payments for vouchers could be due next week

Over 3.6 million individuals on Personal Independence Payment (PIP) could discover as early as next week if the proposed changes detailed in the 'Modernising support for independent living: the health and disability green paper' will be implemented under the new Labour Government.

The upcoming Department for Work and Pensions (DWP) oral questions session is scheduled for Monday, October 7 in the House of Commons. This will be the first opportunity for the new ministerial team, headed by Liz Kendall, to answer queries from the Opposition benches.

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, Minister for Social Security and Disabilities, Sir Stephen Timms MP, stated that the DWP will scrutinise the responses while "considering our own approach to social security in due course".

READ MORE: PIP and ESA benefit claimants put on 'high alert' as DWP sends important letter

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 underscored, "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." reports the Daily Record.

"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 proposed alterations could see a move away from the current setup where Personal Independence Payment (PIP) recipients may receive cash of up to £737.20 every four-week period to different forms of aid including vouchers, single payment grants, a system based on actual spend, or selecting support tools from a list.

Additional suggestions put forward consist of changing the criteria for being eligible for PIP, overhauling how assessments are carried out, and shifting the costs of PIP onto the NHS and local councils.

Alternatives to regular PIP cash payments

In exploring alternatives to the usual cash handouts of PIP, the Green Paper talks about other potential methods to assist individuals with disabilities and chronic health issues. These methods are outlined as means for maintaining contributions towards the extra expenses incurred by these individuals.

These 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 predicted that the proposed alterations to the Work Capability Assessment could result in 424,000 individuals with severe mobility or mental health problems losing out on additional Universal Credit of more than £400 a month and protection from sanctions.

According to the OBR's estimates, only three per cent of these people 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 won't impact the 173,000 individuals currently receiving PIP or Disability Living Allowance (DLA), as they'll transition to Adult Disability Payment (ADP) by the end of next year.