Families struggling with rising household costs are increasingly being directed towards Personal Independence Payments (PIP), a government review has found.
The review by Sir Stephen Timms, the social security minister, found PIP was not working “as intended” and warned the cost of disability benefits could reach £41 billion a year by the end of the decade.
Officials at the Department for Work and Pensions examined the reasons behind the sharp rise in PIP claims, including the growth in claims linked to mental health conditions such as anxiety and ADHD.
They found an increasing number of households were being directed towards PIP after approaching Citizens Advice and other organisations for help with their finances.
The review said: “People may have been seeking additional sources of income to help them meet rising costs, and contact with support bodies, healthcare professionals or benefit advisers may result in being ‘signposted’ towards PIP.”
PIP, which can be worth up to £778 a month, is designed to help people with disabilities or long-term sickness cover extra costs, including home adaptations.
The benefit can be claimed by people who are employed as well as those who are unemployed and, unlike Universal Credit and other benefits, is not means-tested.
Why are more people being directed towards PIP?
The review cited figures from Citizens Advice showing that, last year, almost a quarter of people who contacted the organisation about difficulties paying energy bills or rent were later given advice on how to claim PIP.
The DWP review also included research carried out by Basis Social, which interviewed advisers working for charities alongside medical professionals and social workers.
The research found that “financial pressures will, in some cases, be the trigger for initiating a claim”.
It added that “conversations about PIP were a significant part of their day-to-day workload”.
The research concluded:
“Depending on the needs of the client they can offer informational, practical, and emotional support to their clients throughout their PIP claim journey and are able to signpost to wider support services.
“Thus, seeking general advice on financial hardship may be a starting point for a more specific conversation about PIP.”
How much has the PIP caseload increased?
According to the latest official figures, four million people were claiming PIP in April, reports The Telegraph.
Of those, 3.3 million were of working age and 700,000 were pensioners.
The number of claimants has increased by more than one million since April 2022 and has almost doubled since April 2018, when the caseload stood at 2.1 million people.
The rise in claims has increased the cost to taxpayers from £12.5 billion in 2019/20, the year before the coronavirus pandemic, to an estimated £28.7 billion in 2025/26.
What have Conservatives said about PIP reform?
Helen Whately, the shadow work and pensions secretary, said people should only be encouraged to claim PIP when there is a genuine belief they are entitled to support.
She said: “Anyone encouraging someone to claim PIP should only do so if they genuinely believe they’re entitled to it.
“PIP is not there to help able-bodied people with their bills – it’s there to help cover the extra costs faced by people with serious illnesses and disabilities.
“A system that can be exploited like this is clearly broken. That’s why Conservatives will carry out a root-and-branch review. We’ll replace it with a new sickness benefits system, which uses face-to-face assessments to make sure support goes to those who genuinely need it.”
What has the Government said about changes to PIP?
A DWP spokesman said: “The central conclusion of the Timms Review Interim Report is clear – PIP is no longer fit for purpose. The review’s final recommendations are due this autumn and will lay the foundation for deep, sustainable reform.”
The spokesman added: “This Government is determined to turn the tide on poverty after years of rising hardship. Household incomes have risen 5 per cent in real terms, food bank usage has fallen, and food insecurity is down.
“We’re also tackling the cost of living pressures by increasing the National Minimum Wage, taking money off energy bills and launching the Crisis and Resilience Fund.”
Why does Citizens Advice say people need support accessing PIP?
A Citizens Advice spokesman said people often approached the organisation with several overlapping problems.
They said someone might come for help with a fuel voucher but leave with support addressing the wider causes of their financial hardship, including checking whether they may be eligible for PIP.
The spokesman said:
“PIP is a complex benefit, and our frontline teams help people who have complicated health needs, struggle with digital applications and might otherwise find it difficult to access help they’re eligible for and desperately need.”
They added:
“We regularly speak to people who cannot afford to top up their energy meters because the electricity needed to power a lifeline mobility device, or the extra heating required to manage the side effects of chemotherapy, has left them unable to make ends meet.”
Citizens Advice said waiting until people reached crisis point was “catastrophic for them and costly for the state”.
The organisation said fundamental reform was needed to make PIP “fair, compassionate, and straightforward” for the people who depend on it.