DWP under scrutiny over plan to replace PIP cash payments with vouchers

The DWP has said that proposed changes to Personal Independence Payment (PIP) outlined in a recent consultation have been met with "mixed" and for some, "consistently negative" responses by the pubic

The Department for Work and Pensions (DWP) has received a "mixed" reaction, with some responses being "consistently negative" from the public concerning proposed alterations to the Personal Independence Payment (PIP), as detailed in a recent consultation. Figures from the DWP indicate that there are currently a record number of PIP claimants - over 3.6 million people in Great Britain benefit from up to £737.20 every month.

SNP MP Chris Law posed a question to the DWP about whether the UK Government intends to carry out suggestions from the 'Modernising support for independent living: the health and disability green paper, introduced by the previous Conservative government in April. The consultation that followed put forward various welfare reform ideas, such as switching cash payments of PIP for different kinds of assistance including vouchers, one-time grants, a proof-of-purchase scheme, or selecting aid equipment from a catalogue.

Further suggestions include adjusting PIP eligibility criteria, revamping the assessment procedure, and transferring PIP expenses to the NHS and local councils.

In a formal response given to the Dundee West MP, the Minister for Social Security and Disabilities, Sir Stephen Timms MP, clarified that the consultation gathered upwards of 16,000 contributions within its 12-week lifespan, concluding on July 22.

He elaborated: "This demonstrates the depth of feeling about the previous Government's proposals. I thank the British public, as well as the numerous charities and organisations who responded on behalf of their members, for the time and effort taken to share their thoughts and views.", reports the Daily Record.

"Whilst engaging with responses, I can confirm that responses to the set of proposals on the reform of Personal Independence Payments was mixed and for some proposals consistently negative."

Mr Timms added: "We will be setting out our own plans for social security in due course and will fulfil our continued commitment to work with disabled people so that their views and voices are at the heart of all that we do."

Parliament is currently in recess until Monday, October 7, owing to the party conference season, but this date also coincides with the next scheduled DWP oral questions session in the House of Lords.

In what will be the first appearance of the new ministerial team under Liz Kendall, they will face scrutiny from the opposition benches - a session that could provide millions of PIP claimants with fresh insights into the Green Paper's proposals.

Alternatives to PIP cash payments

The Green Paper itself suggests that if the DWP were to explore different methods of supporting individuals with disabilities and long-term health conditions beyond regular cash payments, it could maintain contributions to their additional costs through various alternative models.

These include:

• Catalogue/ shop scheme: in this kind of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost. This would likely work better for equipment and aids rather than for services.
• Voucher scheme: in this kind of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for both equipment/aids and for services.
• A receipt-based system: this would involve claimants buying aids, appliances, or services themselves, and then providing proof of their purchase to claim back a contribution towards the cost. This could work in a similar way to Access to Work, which provides grants for equipment, adaptations, and other costs to help disabled people to start and stay in work.
• One-off grants: these could contribute towards specific, significant costs such as for home adaptations or expensive equipment. It could involve a person supplying medical evidence of their condition to demonstrate the need for equipment or adaptations.

The Office for Budget Responsibility (OBR) has projected that the proposed alterations to the Work Capability Assessment could result in 424,000 individuals with severe mobility or mental health problems losing out on additional Universal Credit of over £400 a month and protection from sanctions.

According to the OBR's estimates, only three per cent of these individuals would be expected to find employment within the following four years.