DWP PIP update issued as 250,000 new claimants apply in just a few months

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A whopping 250,000 people applied for Personal Independence Payment (PIP) between January and April 2024, according to the Department for Work and Pensions. This translates to an average of over 80,000 new claims each month for the benefit.

The surge in PIP applications has triggered a wave of questions about the length of PIP awards and whether the Green Paper on proposed reforms could end payments before planned reviews. PIP, which was launched in April 2013, is expected to eventually replace Disability Living Allowance (DLA).

Currently under review until July 22 is a potential overhaul that could see the existing system of monthly cash payments swapped with vouchers. In other news, PIP claimants may be asked to repay benefits following the discovery of £90 million in overpayments.

There are also concerns about possible changes to the Motability scheme. Updates on DWP PIP reforms are causing worries that the scheme could be 'eradicated', as reported by Birmingham Live.

The DWP weighed in on the issue, stating: "The UK's health landscape has changed since Personal Independence Payment (PIP) was introduced in 2013 with the intention that it would be a more sustainable benefit that would support disabled people to live independently by helping with the extra costs they face.

"However, the caseload and costs are now spiralling. There are now 2.6 million people of working age claiming PIP and DLA with 33,000 new awards for PIP each month which is more than double the rate before the pandemic. This is expected to cost the taxpayer £28 billion a year by 2028/2029 a 110 per cent increase in spending since 2019."

How long can you be awarded PIP for?

The Department for Work and Pensions has recently provided guidance on how long a person can be awarded Personal Independence Payment (PIP). The decision varies depending on the specifics of the claim and covers:

• Fixed-length awards, where a review date is already set
• Ongoing awards with no end date, where a light-touch review is intended at the 10-year mark
• Short-term awards that end within a small number of years without review, unless a new claim is submitted

Each case is evaluated based on the individual circumstances of the claimant, including the potential for changes in their medical condition or future treatments. Reviews typically occur between nine months and ten years for fixed-term awards, with shorter periods reserved for exceptional cases.

Awards lasting two years or less are classified as short-term. A study conducted in the quarter ending April 2024 reveals that a significant 79% of successful claims were short-term (0 to 2 years), 12% were for a lengthier term (over 2 years), and 8% were ongoing.

As of the end of May 2019, a tweak in the guidance for PIP claimants expecting a review upon reaching State Pension age, means they are now typically granted ongoing awards. Individuals can keep receiving PIP once they reach pension age, but no fresh applications are allowed.

The PIP handbook clarifies: "Most claimants will have their award regularly reviewed, regardless of the length of the award. This will make sure everyone continues to receive the most appropriate level of support.

"Some claimants will be given a limited-term award for a fixed period of up to two years. Their award will not be reviewed. Limited awards with no review date are given where the claimant's health condition may be reasonably expected to improve.

"Rewards made under the special rules for end of life will last for three years. The daily living component will be paid at the enhanced rate in all scenarios. Payment of the mobility component will hinge on if the claimant requires help to get around and, if they do, the breadth of help they require."

When PIP benefits are granted, decisions are made on the payout level for the two components - daily living and mobility. Each of these can be granted at either an enhanced or a standard rate.

Some applicants are only awarded one component, while others get both. This means that amounts paid out range from £290.60 to £737.20 every four weeks.

Statistics reveal that 36 per cent of all claims with entitlement to Personal Independence Payment (PIP) as of April 20, 2024 receive the highest level of award, with both daily living and mobility components paid at the enhanced rate. This is consistent with the proportion in the previous quarter.

Claimants for PIP must have had their health condition or disability for three months and anticipate it to continue for at least another nine months. Therefore, if a PIP award is granted, entitlement begins from the date of the claim, or from the date the three-month qualifying period was satisfied (for new claims), or from approximately four weeks after the PIP decision (for those transitioning to PIP from Disability Living Allowance following a reassessment of their claim).

There are instances when payment may be suspended, such as when an individual is hospitalised.

Will the proposed reforms halt my PIP before my review is due?

Mims Davies, DWP Minister for Disabled People, Health and Work, has assured individuals that there will be no immediate change to their PIP as a result of the planned reforms. However, reviews will proceed as usual and these could still result in someone's PIP being reduced or stopped in this ongoing process.

The possible changes to benefits were discussed by Ms Davies, who stated: "Modernising Support for Independent Living: The Health and Disability Green Paper looks at different options to reshape the current welfare system so that we can provide better-targeted support to those who need it most. We are considering these options through our 12-week consultation which was published on Monday 29 April and will close on Monday 22 July at 11.59pm.

"There will be no immediate changes to PIP, or to health assessments. All scheduled PIP assessments and payments will proceed as normal, and claimants should continue to engage as usual and provide any necessary information or updates regarding their circumstances.

"We encourage everyone to respond to the consultation which can be found here so that we are able to hear from as many disabled people, people with health conditions, their representatives, and local stakeholders as possible on these important issue".