The Department for Work and Pensions (DWP) has issued an update on the controversial PIP reforms that could affect work and income rules for 475,000 claimants. A minister from the DWP has addressed questions about the planned overhaul of Personal Independence Payment (PIP) amid concerns over its effects on the UK's economic landscape.
The benefit, which sees a staggering 70,000 new claims each month and is currently received by approximately 3.5 million individuals, may undergo significant changes due to the soaring costs deemed "unsustainable" by the Department.
In a bid to manage these expenses, the DWP is contemplating the elimination of regular monthly payments, potentially replacing them with vouchers and grants aimed at providing direct support such as therapy and equipment.
This has raised alarm bells for disabled beneficiaries, particularly those who depend on PIP monetary payments to cover transportation costs, including taxis and specially adapted vehicles, which are essential for their employment. The proposed changes have sparked discussions around the rules governing PIP and how they might align with the Government's ongoing employment initiatives.
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SNP MP Drew Hendry, representing Inverness, Nairn, Badenoch and Strathspey, has queried the DWP on how any alterations to PIP might influence the UK job market, reports Birmingham Live.
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Mims Davies, the Minister for Disabled People, Health and Work, in her written reply, stated: "The Department has made no assessment of the potential impact of Personal Independence Payments on trends in the number of claimants in and seeking employment."
"Personal Independence Payment (PIP) is designed to help with the extra costs arising from long-term ill health and disability, and is paid regardless of income and irrespective of whether someone is in work. PIP can also be paid in addition to other benefits the individual may receive, for example Universal Credit or Employment and Support Allowance, and can provide a passport to additional support through premiums or additional amounts."
In an earlier response to Neil Coyle, Labour MP for Bermondsey and Old Southwark, who had also queried about PIP and employment, Ms Davies clarified: "In March 2023, 475,000 people in receipt of PIP in England, Wales, or outside the UK were in employment in the UK, including self-employment. The proportion of people in receipt of PIP who are in employment was published in Modernising Support for Independent Living - The Health and Disability Green Paper."
A consultation is being held on the new Green Paper and will close on Monday, July 22. People with disabilities and long-term health conditions, their representatives and local stakeholders are all being urged to contribute.
The DWP is also tightening up on Universal Credit's separate disability provision - which pays extra money to those with 'limited capability for work' - by strengthening work assessments and the issuing of sick notes to write people off indefinitely.
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