by The newly appointed Social Welfare and Disability Minister at the Department for Work and Pensions (DWP) has given an update on proposals to introduce major changes to PIP.
The Department has admitted that more than 16,000 people have given their views on the proposed revisions to personal independence payments (PIP), reports the Daily Record.
In light of the consultation ‘Modernising support for independent living: the health and disability green paper’, Sir Stephen Timms MP confirmed that the DWP will be analyzing the feedback and “reflecting on our own approach to social security in good time”.
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This statement was made following an inquiry by Labor MP, Cat Smith, regarding the time frame for the DWP to publish its response to 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 alternative forms of assistance to PIP recipients instead of regular cash payments, which can add up to £737.20 every four weeks. For money saving tips, sign up to our Money Newsletter here
Among the proposed changes is the idea of replacing the standard four-weekly PIP payments with a variety of other supports such as vouchers, one-off grants, a system based on actual receipts, or the option to choose assistive devices from a catalog .
In his written response on Monday, Sir Stephen said: “The consultation on the Support Modernization Green Paper closes on Monday 22 July. Over 16,000 responses were received and we will review those responses.”
He also clarified the position on the future of social security measures, saying: “The previous government developed the proposals in this Green Paper. We will be considering our own approach to social security in due course.”
July 30 was the start of the summer break for parliament, which halted debate until September 2. This means that over 3.5 million PIP recipients are waiting for news of possible updates to their benefits.
There has been significant pushback from various charities and organizations in response to the proposed PIP reforms, suggesting that critical feedback from the recent consultation is likely to struggle with the new Labor administration not to forget.
Explore alternatives to traditional cash benefits
The Green Paper examines the Department for Work and Pensions (DWP) exploring other ways to help those with disabilities and chronic health problems other than conventional financial statements. These may be contributing to additional costs in a variety of ways.
Suggested alternative strategies 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 get into work 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.
In light of these developments, ten charities and organizations contacted the Labor government, urging them to abandon the current proposals. They warn that, rather than achieving the aim of reducing economic inactivity, these plans would “condemn 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 ran out of 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 reassure us.”
Adding to her concerns, Ms Anwar said: “We want the new Secretary of State to put scrapping the plans at the top of his to-do list. Instead of introducing tougher cuts and sanctions, the new government needs to look at remove the barriers to economic activity that are part of the social security system, by addressing its current inadequacy and risk, people should have the security we all need. who are sick and disabled – the work begins now to make this happen.” The full letter can be accessed online here.
According to the Office for Budget Responsibility (OBR), 424,000 people with severe mobility or mental health problems could lose access to extra universal credit benefits of more than £400 a month as a result of the proposed modifications to the Assessment of Working Capacity (WCA), together with exemption from. sanctions. The OBR predicts that three per cent of these claimants may find employment within the next four years.
