A staggering 250,000 people applied for Personal Independence Payment (PIP) between January and April 2024, the Department for Work and Pensions has revealed. This equates to an average of more than 80,000 new claims per month.
The spike in PIP applications has led to a flood of questions about the duration of PIP awards and whether the Green Paper on proposed reforms will end payments early before claimants have to be regularly reassessed.
PIP, introduced in April 2013, was set to gradually replace Disability Living Allowance (DLA). A proposed overhaul, which would see the existing system of monthly cash payments replaced by vouchers, is currently under consultation until 22 July.
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In related news, DWP PIP recipients could be required to pay back benefits as investigations reveal a total of £90 million overpayments.
Concerns have also been raised over potential changes to the DWP PIP structure amid fears the Motability scheme could be dismantled, Birmingham Live reports.
The DWP said: “Healthcare in the UK has changed since the Personal Independence Payment (PIP) was introduced in 2013. It was intended to be a more sustainable benefit that would help people with disabilities to live independently by allowing them to help with the additional costs they face.
“However, the number of cases and costs are now increasing. There are now 2.6 million working-age people claiming PIP and DLA, with 33,000 new PIP awards every month, which is more than double what it was before the pandemic. This is expected to cost taxpayers dearly £28 billion per year by 2028/2029, a 110 per cent increase in spending since 2019.”
How long can you receive PIP?
In the latest guidance accompanying the new statistics, the DWP says that when an application for PIP is approved, decisions are made about the type of award and the length of time before an assessment of the claim will be carried out.
The reward type can be:
- an award of a fixed duration with a fixed period before an assessment takes place
- a continuous award without an end date, with the intention of carrying out a light evaluation after 10 years
- a short-term award without review, ending within a small number of years unless a new claim is filed
The types of awards and review periods will be determined on a case-by-case basis, taking into account the claimant’s needs and the likelihood of these needs changing. This includes any planned treatment or therapy, or learning to manage a condition.
For fixed-term awards, the review period generally ranges from a minimum of nine months to a maximum of ten years. Only in exceptional circumstances are review periods of less than nine months set. An award of two years or less is considered short-term.
The latest figures show that in the quarter ending April 2024, 79 percent of claims awarded were short-term (0 to 2 years), 12 percent were long-term (more than 2 years) and 8 percent were ongoing.
From 31 May 2019, updates to the guidance for individuals who would have been reassessed upon reaching state pension age means that many will now receive ongoing awards. This change ensures that claimants can still receive Personal Independence Payment (PIP) after reaching state pension age, although new claims cannot be made after this milestone.
The guidance set out in the PIP manual states: “Most claimants will have their award reviewed regularly, regardless of the duration of the award. This will ensure that everyone continues to receive the most appropriate level of support. Some claimants will receive a receive limited compensation. term awards for a fixed period of up to two years. Limited awards without a review date are given when the claimant’s health condition can reasonably be expected to improve.
Furthermore, “Awards awarded under the special end-of-life rules are valid for three years. The daily living component is paid at the increased rate in all cases. Payment of the mobility component depends on whether the claimant needs assistance to move around and, if so, how much assistance is needed.”
In terms of PIP payouts, when an award is made, decisions on the amount are based on assessments for the daily living and mobility components. There are two payment levels, an enhanced or standard rate for each component.
Depending on the individual’s circumstances, recipients may receive a portion or both, and payouts can range from €290.60 to €737.20 every four weeks.
Statistics show that 36 per cent of all Personal Independence Payment (PIP) claimants will receive the top level of pay from 20 April 2024, with both daily living and mobility components paid at the increased rate. This is in line with the share in the previous quarter.
To qualify for PIP, applicants must have had their health condition or disability for three months and expect it to continue for at least another nine months. Therefore, if a PIP award is made, entitlement begins to run from the date of the claim, or from the date the three month qualifying period is completed (for new claims), or from approximately four weeks after the PIP decision (for those switching from Disability Living Allowance following a reassessment of their claim).
There are cases where payment may be suspended, for example when someone is admitted to hospital.
Will the proposed reforms stop my PIP before my assessment is due?
Mims Davies, DWP Minister for Disability, Health and Work, has assured individuals that there will be no immediate change to their PIP as a result of the planned reforms. However, assessments will continue as normal and could still result in someone’s PIP being reduced or stopped during this ongoing process.
Ms Davies explained the upcoming changes to benefits: “Modernising Independent Living Support: The Health and Disability Green Paper looks at a range of options to reshape the current welfare system so we can deliver better targeted support to those who need it most. We are considering these options through our 12-week consultation process, which was published on Monday 29 April and closes at 11.59pm on Monday 22 July.”
She clarified that there would be no immediate changes to the PIP or related health assessments and advised: “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 about their circumstances.”
In addition, Ms Davies urged participation in the ongoing consultation process: “We encourage everyone to respond to the consultation available here so that we can hear from as many disabled people, people with health conditions, their representatives and local stakeholders as possible on these important issues.”
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