Experts have warned that the Department for Work and Pensions (DWP) could unveil major changes to Personal Independence Payment (PIP) eligibility criteria in efforts to reduce the welfare bill. The benefit is aimed at helping those with extra needs due to long-term health issues, providing up to £737.20 every four weeks.
Liz Kendall, the Work and Pensions Secretary, is set to outline new measures concerning the welfare system on Tuesday (March 18), with financial experts commenting on what potential changes could come. Christopher Massey, principal lecturer in British history, politics, administration and policy at Teesside University, suggests there may well be changes to PIP on the way.
He said: “It appears likely that the Government will press ahead with tightening the eligibility criteria for PIP, rather than freezing the overall amount paid. The Government could ‘cut’ the PIP bill by increasing the thresholds for PIP payments to begin to be paid at the standard or higher rate.”
Currently, PIP applicants are scored on their ability to perform specific tasks, which decides the extent of support they require and consequently, the amount they are entitled to. There is a lower and higher payment rate for both the mobility element and daily living component.
PIP currently has these weekly payment rates:
Mobility element
- Lower rate – £28.70
- Higher rate – £75.75
Daily living element
- Lower rate – £72.65
- Higher rate – £108.55.
When prompted for his thoughts on what PIP reforms should be brought in Mr Massey said: “The PIP system requires reform to achieve better outcomes for government and claimants. In particular, the assessment for PIP needs radical reform to ensure consistency with decision making.”
Speaking more broadly about how to improve the benefits system, the academic said: “The system needs further investment to ensure that those categorised as long-term sick, or disabled, receive regular support and advice, particularly if their circumstances change. The Government has made some positive announcements in this area, but these have been subsumed by the headline cuts to benefits.”
Some experts have suggested that the qualifying criteria for mental health conditions for PIP could be tightened. Rebecca Lamb, external relations manager at Money Wellness, has voiced her concerns about the potential repercussions of such a change
She said: “Support like PIP is often a lifeline, helping people cover essential costs and maintain some level of independence. It’s important to remember that mental health conditions vary greatly, from anxiety to PTSD, and each affects individuals in different ways.
“Removing support for these conditions could lead to significant consequences, including a rise in financial hardship, with more people struggling to pay for basics like rent, food, and bills. It could also push many into debt.”
She advocates for a comprehensive strategy to assist benefit recipients in re-entering the workforce, while clarifying that PIP is not an unemployment benefit but is designed to offset the additional expenses faced by claimants. Ms Lamb said: “This means not only ensuring they have access to fair and flexible job opportunities but also addressing financial barriers like debt and childcare costs.
“Tailored debt advice, budgeting support, and access to training programs can make a huge difference in building financial stability and confidence. Additionally, making sure benefits taper gradually rather than creating a sudden ‘cliff edge’ when starting work can help individuals transition smoothly without immediate financial hardship.”