Ahead of a potential shake-up that could see cash payments replaced by vouchers, PIP recipients are being presented with eight different payment options.
The Department for Work and Pensions (DWP) has unveiled proposals to overhaul the existing system in its ‘Modernizing Support for Independent Living: The Green Paper on Health and Disability’. The DWP said: “We must ensure we have a system that is sustainable and fair for all. PIP is designed to help meet the additional costs that people with health problems and disabilities face in enabling independent living.
“Some claimants will have significant additional costs associated with their disability and others will have minimal costs. This Green Paper looks at whether there are ways we can improve the way we support people, in a way that is also fairer to the taxpayer than the current system.”
Under proposed reforms aimed at curbing rising Personal Independence Payment (PIP) spending, beneficiaries could receive vouchers, grants and access to store catalogs in lieu of cash rewards that could amount to up to £737 monthly.
Currently, around 3.5 million people receive PIP, of which 2.6 million are of working age. The DWP reports it is processing 33,000 new PIP claims every month, which is more than twice as many as before the pandemic.
Birmingham Live is reporting an “unprecedented” rise in demand, mainly fueled by a significant increase in claims from people struggling with mental health issues, which now make up the majority of claims, Chronicle Live reports.
Here you will find the latest news about PIP payments. There are two components to consider, each offering a standard rate and an increased rate. People can get one or two, giving eight possible PIP combinations. They are all described in detail below.
Personal Independence Payment (PIP) rates 2024-2025.
Daily life component.
Standard: £72.65 per week (was £68.10).
Mobility component.
Improved: £75.75 per week (from £71.00).
PIP payment combinations.
PIP rewards are based on a weekly pay rate, but are paid out every four weeks. So in five-week months, you can receive one PIP payment into your account at the beginning of the month and another at the end of the same month.
Based on our calculations, you will find here all possible payment amounts that you can receive.
1. Standard daily life only.
Payment rate: £72.65 per week.
Monthly amount (every four weeks): € 290.60.
Annual amount (based on 52 weeks): € 3,777.80.
2. Only an improved daily life.
Payment rate: £108.55 per week.
Monthly amount (every four weeks): €434.20.
Annual amount (based on 52 weeks): €5,644.60.
3. Standard mobility only.
Payment rate: £28.70 per week.
Monthly amount (every four weeks): € 114.80.
Annual amount (based on 52 weeks): € 1,492.40.
4. Only improved mobility.
Payment rate: €75.75 per week.
Monthly amount (every four weeks): £303.
Annual fee (based on 52 weeks): £3,939.
5. Standard daily life plus standard mobility.
Payment rate: £101.35 per week.
Monthly amount (every four weeks): €405.40.
Annual amount (based on 52 weeks): €5,270.20.
6. Standard daily living plus improved mobility.
Weekly payment rate: £148.40.
Monthly amount (every four weeks): €593.60.
Annual amount (based on 52 weeks): €7,716.80.
7. Improved daily living plus standard mobility.
Weekly payment rate: £137.25.
Monthly amount (every four weeks): €549.
Annual amount (based on 52 weeks): £7,137.
8. Improved daily life plus improved mobility.
Weekly payment rate: £184.30.
Monthly amount (every four weeks): €737.20.
Annual amount (based on 52 weeks): € 9,583.60.
This simply means that the least anyone can now receive is €290.60 every four weeks, an increase of €18.20 from the previous amount of €272.40. The maximum is £737.20 per four weeks, an increase of £46.20 from the current £691.
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The DWP announced: “The UK has used a fixed money transfer system since the 1970s, but there are a number of international systems that look at the specific additional costs people have and provide more tailored support instead. In New Zealand, for example, the amount of disability benefits is based on a person’s additional expenses, which have been verified by a doctor. Norway’s basic benefit requires people to provide a letter from a GP describing the nature of their condition and the associated additional costs.
“We are considering options including one-off grants to better help people with significant costs, such as home modifications or expensive equipment, as well as providing vouchers to contribute to specific costs, or reimbursing applicants who provide vouchers for the purchase of aids, devices or services. This reflects the fact that some claimants will have significant additional costs associated with their disability, while others will have minimal or specific costs.”
“While these alternative models help people with the additional costs of their disability or health condition, we know that other forms of support, including health care, social services and respite, are also important in helping people realize their full potential and live independently. also consider whether some people receiving PIP who have lower or no additional costs may achieve better outcomes through better access to treatment and support rather than an out-of-pocket payment.
Find out more in our Money Saving Newsletter, sent daily with all the updates you need to know on PIP payments, Universal Credit, benefits, pensions, finance, bills and shopping discounts.
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