The Department for Work and Pensions (DWP) has announced a possible shake-up to Personal Independence Payments (PIP), which could see direct cash payments scrapped in favor of alternatives such as vouchers.
The proposals were unveiled to revamp the existing framework as part of the Modernizing Support for Independent Living: The Green Paper on Health and Disability. PIP recipients will be presented with eight different payment options, BirminghamLive reports.
Under proposed reforms aimed at curbing rising spending on PIP, beneficiaries could receive vouchers, subsidies and access to shopping catalogs instead of current cash prizes. This can amount to €737 per month.
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The DWP said: “We must ensure we have a system that is sustainable and fair for all. PIP is designed to help address the additional costs faced by people with health conditions and disabilities 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.”
Currently, approximately 3.5 million people are PIP beneficiaries, of which 2.6 million are of working age. The DWP reports it is processing 33,000 new PIP claims every month, a number that has more than doubled since before the pandemic.
An “unprecedented” spike in demand for PIP is being fueled by a significant increase in mental health claims, which now make up the majority of applications. Here you will find an overview of the latest PIP rates. The benefit consists of two parts, each with its own standard and 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 (from £68.10)
- Enhanced: £108.55 per week (from £101.75)
Mobility component
- Standard: £28.70 per week (from £26.90)
- Enhanced: £75.75 per week (from £71.00)
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.
Below you will find all possible payment amounts 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
Payment rate: £148.40 per week
Monthly amount (every four weeks): €593.60
Annual amount (based on 52 weeks): €7,716.80
7. Improved daily life plus standard mobility
Payment rate: £137.25 per week
Monthly amount (every four weeks): €549
Annual amount (based on 52 weeks): £7,137
8. Improved daily life plus improved mobility
Payment rate: £184.30 per week
Monthly amount (every four weeks): €737.20
Annual amount (based on 52 weeks): € 9,583.60
This means the minimum payment a person can receive will be £290.60 every four weeks, an increase of £18.20 from the previous £272.40. The maximum is £737.20 per four weeks, an increase of £46.20 from the previous £691.
The DWP said: “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.
“For example, in New Zealand, the disability benefit amount is based on an individual’s additional expenses, which are 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. cost.
“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 claimants who provide vouchers for the purchase of tools, 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.