by Conservative proposals to scrap the cash Personal Independence Payment (PIP) and replace it with a voucher-based system have been confirmed as under “review”, the Labor-run Department for Work and Pensions (DWP) has confirmed Work that there are more than 16,000 people. he responded to a consultation on the changes.
The DWP’s newly appointed Minister for Social Welfare and Disability, Sir Stephen Timms MP, confirmed the big response as Labor considers how it will tackle the ballooning benefits bill. The Department has said it will take its time to review public views on the Tory Green Paper ‘Modernising Support for Independent Living: Health and Disability’, with a view to “assessing our own approach to social security in good time”.
His comments were in response to a question from Labor colleague Cat Smith about when the DWP plans to publish its findings from the consultation which ended on 22 July. The Conservative government’s April proposals, designed to reduce the welfare bill by £12 billion a year, suggest. replacing regular cash payments of up to £737.20 every four weeks for PIP recipients with other forms of support such as vouchers, one-off grants, an income-based system, or choosing facilities from a catalogue.
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In his written response before the end of parliament, Sir Stephen said: “The consultation on the Support Modernization Green Paper came to an end on Monday 22nd July. Over 16,000 responses have been received and we will review those responses.
“The proposals in this Green Paper were developed by the previous government. We will be considering our own approach to social security in due course.”
The business of Parliament will not resume until September 2, meaning that over 3.5 million PIP recipients could wait until then for a statement – at the earliest.
Alternatives to regular cash payments
The Green Paper explains that if the DWP were to consider other ways of supporting people with disabilities and long-term health conditions – rather than providing regular cash payments – it could continue to add to people’s extra costs through other models.
These include:
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Catalogue/shop scheme: in this type of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost. This would probably work better for equipment and facilities rather than services.
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Voucher scheme: in this type of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for both equipment/facilities and services.
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Receipt-based system: this would involve claimants purchasing facilities, appliances, or services themselves, then providing proof of purchase to claim a contribution back 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 people with disabilities start and stay in work.
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One-off grants: these may contribute to specific, significant costs such as home adaptations or expensive equipment. A person may be providing medical evidence of their condition to demonstrate the need for equipment or adaptations.
Ten charities and organizations have written to the Labor Government urging them to scrap the proposals. They warn that the plans will not achieve their stated aim of reducing economic inactivity but will instead “relegate seriously ill and disabled people to a life of poverty and the threat of sanctions”.
Anela Anwar, Chief Executive of anti-poverty charity Z2K, which co-ordinated the letter, said: “The plans to cut vital income and remove protections for those of us who become seriously ill or disabled in the future are misguided and dangerous.
“It was a relief that the previous government gave up the time before the election to implement the plans and we were hopeful that a new government would not push them forward. But we haven’t heard anything so far to put our minds at ease.”
Ms Anwar added: “We call on the new Secretary of State to stop putting the plans at the top of his to-do list. Instead of introducing more severe cuts and sanctions, the new government must look to remove the barriers to economic activity built into the social security system, by addressing the current inadequacy and risk. The seriously ill and disabled should have the security we all need – the job starts now to make this happen.”
You can read the full letter online here.
The Office for Budget Responsibility (OBR) estimates that the proposed changes to the Work Capacity Assessment (WCA) would mean that 424,000 people with serious problems would be denied extra Universal Credit worth more than £400 a month and protected from sanctions. mobility or mental health. The OBR estimates that only three per cent of these people would be expected to move into work in the following four years.
The ten organizations are also calling for any future changes to PIP to be made with disabled people at the center – such as the Scottish Government’s approach to Adult and Child Disability Payment and the new Pension Age Disability Payment to be launched in October.
The consultation on the proposals will close on 22 July, you can complete the six page document online here .
