Breaking News – it’s now been confirmed that the DWP PIP Voucher Scheme is no longer going ahead. For the time being anyway.
However, Work & Pensions Secretary Liz Kendall left the door open to the controversial DWP PIP Voucher Scheme being implemented in future. When she was asked directly on the 13th November whether she would rule out introducing vouchers to replace the cash PIP, she declined to address the question directly.
Ms Kendall instead acknowledged there is “real concern” amongst the c.3million people currently receiving Personal Independence Payment (PIP), particularly given the impact it could have on claimants’ “autonomy”.
What is the DWP PIP Voucher Scheme?
The DWP PIP Voucher Scheme was proposed by the previous Conservative government in its Green Paper, which was released in Apr-24. A Green Paper is a ‘consultation document’ produced by Government which is intended to gather feedback on future policy or legislative proposals.
In summary, the Green Paper suggested that for some conditions, a voucher scheme could be introduced to replace regular cash payments. Under such a scheme, disabled people could receive vouchers that contribute towards specific costs. For example, vouchers could be provided that can be used specifically for purchasing health equipment / aids or other condition specific services.
DWP PIP Voucher Scheme Alternatives
A Voucher Scheme to replace PIP wasn’t the only option proposed as an alternative model to replace a cash based system. Other suggestions produced by the Conservatives included:
- One-off grants: a lump sum payment which can be used to cover significant costs for specific items, such as medical equipment or adaptations to a home environment. Claimants could be required to provide medical evidence to support the claim and demonstrate their need for the equipment.
- A receipt based system: claimants would buy the aids, appliances or services themselves, then provide proof of their purchase to claim back a contribution towards the cost.
- Catalogue / Shop scheme: there would be an approved list of suppliers from whom claimants could acquire items (equipment / aids) at reduced or no cost.
The common theme across all these alternative models is twofold; (1) save money by ensuring that PIP claimants are only receiving money towards specific items e.g. proven medical expenses; and (2) prevent anyone from claiming PIP when there isn’t a genuine need.
What Other DWP PIP Changes Were Proposed?
If we refer back to the Green Paper again, future reform is likely to be focused on the following areas:
- The Assessment Process: ensuring financial support is fairly targeted and focused on individuals with only the highest needs.
- Eligibility Criteria: for example, ensuring the three month qualifying period correctly captures people who are going to have genuine long-term health conditions and disabilities.
How Will DWP PIP Change in Future?
In the Ministerial foreword to the Green Paper, Mel Stride (then Secretary of State for Work & Pensions) highlighted the “broader societal changes” since PIP was introduced, particularly the rapid increase in people claiming who have mental health and neurodivergent conditions.
Incredibly, almost a quarter of the adult population (23%) reported having a disability in 2024, compared with 16% in 2013. It is clear that this level of growth in PIP claimants is unsustainable, with one area likely to come under scrutiny being the eligibility criteria for certain mental health and / or neurodivergent conditions.
Ultimately, the UK’s finances are under strain and it is only likely to get worse based on current projections. With the annual cost of PIP spending forecast to increase from £21.6bn in 2024 to £35.3bn in 2029, it’s important the Government ensures PIP continues to be spent effectively and has the maximum impact on claimants who truly need it.
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