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What are PIP disability payments and why could they change? What are PIP disability payments and how could they change?
(about 4 hours later)
Changes to a key disability benefit called Personal Independence Payment (PIP) are being considered by the government as it tries to cut welfare spending. Changes to a key disability benefit called Personal Independence Payment (Pip) are being considered by the government as it tries to cut welfare spending.
PIP is paid to people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition. Pip is paid to people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition.
Prime Minister Sir Keir Starmer is facing pressure from some MPs and charities, who say vulnerable people could lose out if the rules for qualifying are tightened or payments changed.Prime Minister Sir Keir Starmer is facing pressure from some MPs and charities, who say vulnerable people could lose out if the rules for qualifying are tightened or payments changed.
Charities and MPs warn Starmer over benefits changesCharities and MPs warn Starmer over benefits changes
How much are PIP payments worth? Live: Plans to reform welfare system and cut benefits bill to be announced
There are two elements to PIP - a daily living component and a mobility component. Claimants may be eligible for one or both. How much are Pip payments worth?
There are two elements to Pip - a daily living component and a mobility component. Claimants may be eligible for one or both.
Daily living covers areas such as requiring help with preparing food, washing, reading and managing your money. The mobility element includes physically moving around or getting out of your home.Daily living covers areas such as requiring help with preparing food, washing, reading and managing your money. The mobility element includes physically moving around or getting out of your home.
For each, there are two categories of payment - standard and, for those with greater needs, enhanced.For each, there are two categories of payment - standard and, for those with greater needs, enhanced.
For daily living:For daily living:
The standard rate is £72.65 per weekThe standard rate is £72.65 per week
The enhanced rate is £108.55 per weekThe enhanced rate is £108.55 per week
For mobility:For mobility:
The standard rate is £28.70 per weekThe standard rate is £28.70 per week
The enhanced rate is £75.75 per weekThe enhanced rate is £75.75 per week
PIP is usually paid every four weeks and is tax-free. Pip is usually paid every four weeks and is tax-free.
It does not change depending on your income and does not count as income affecting other benefits, or the benefit cap. You can get PIP if you are working. It does not change depending on your savings or income and does not count as income affecting other benefits, or the benefit cap. You can get Pip if you are working.
The payment is made for a fixed period of time between one and 10 years, after which it is reviewed. A reassessment could come earlier if your circumstances change.The payment is made for a fixed period of time between one and 10 years, after which it is reviewed. A reassessment could come earlier if your circumstances change.
How many people receive PIP and who qualifies? Pip is paid in England, Wales and Northern Ireland.
More than 3.6 million people currently claim PIP. There is a similar but separate benefit in Scotland called the Adult Disability Payment.
The payments are made in England, Wales and Northern Ireland. In Scotland, there is a similar but separate benefit called the Adult Disability Payment. How many people receive PIP?
Claimants are assessed and scored for how much help is needed for each of a series of daily living and mobility tasks, in a process which has prompted considerable debate and controversy. More than 3.6 million people currently claim Pip.
A score of between eight and 11 leads to payment of the standard rate. The enhanced rate is paid to those with a score of 12 and above. Overall, about 1.3m people now claim disability benefits primarily for mental health or behavioural conditions such as ADHD.
About 1.3m people now claim disability benefits primarily for mental health or behavioural conditions such as ADHD. That is 44% of all working age claimants, according to the independent economic think-tank, the Institute for Fiscal Studies (IFS). That is 44% of all working age claimants, according to the independent economic think-tank, the Institute for Fiscal Studies (IFS).
How might the rules be changed?How might the rules be changed?
When PIP was introduced in 2013, the aim was to save £1.4bn a year by reducing the number of people eligible for payments. There is a push by ministers to encourage people into work.
The eligibility criteria for Pip is set to be tightened significantly, which could mean changing the scoring system for those who qualify.
At the moment, applicants are scored on a points based system based on their ability to carry out everyday tasks and on their mobility.
Those who score 8-11 points receive the standard rate of Pip, and those who score 12 points and over are eligible for the enhanced rate.
The government also wants more frequent reassessments of those claiming the benefit. However, those who are deemed to have the highest levels of a permanent condition or disability may no longer face reassessment.
Initially, it was thought the government might not increase Pip payments in line with inflation for a year - but that idea is thought to have been withdrawn after Labour MPs voiced opposition.
When Pip was introduced in 2013, the aim was to save £1.4bn a year by reducing the number of people eligible for payments.
However, initial savings were modest and the number of claimants has risen.However, initial savings were modest and the number of claimants has risen.
PIP is now the second-largest element of the working-age welfare bill, with spending expected to almost double to £34bn by 2029-30. Pip is now the second-largest element of the working-age welfare bill, with spending expected to almost double to £34bn by 2029-30.
Overall, the government currently spends £65bn a year on health and disability-related benefits. This is projected to increase to £100bn by 2029.Overall, the government currently spends £65bn a year on health and disability-related benefits. This is projected to increase to £100bn by 2029.
As a result, there is a push by ministers to make changes and encourage people into work.
Initially, it was thought they might not increase PIP payments in line with inflation for a year - but that idea is thought to have been withdrawn after Labour MPs voiced opposition.
Another option would be to tighten the criteria, by changing the scoring system for those who qualify.
What about changes to other benefits?What about changes to other benefits?
Although much of the focus is on reforming PIP, the government may also decide to make changes to other benefits. Although much of the focus is on reforming Pip, the government may also decide to make changes to other benefits.
Universal Credit is the largest working-age benefit, paid to 7.5 million people who may, or may not, be in work.Universal Credit is the largest working-age benefit, paid to 7.5 million people who may, or may not, be in work.
Of those, more than three million Universal Credit recipients have no requirement to find work, a number that has risen sharply. At the moment, more than three million Universal Credit recipients have no requirement to find work, a number that has risen sharply.
The government says this is unsustainable and that it wants to help more people into jobs.The government says this is unsustainable and that it wants to help more people into jobs.