DWP Overhaul of PIP: Reforms, Reviews, and Impact on Claimants

The UK government, under the Department for Work and Pensions (DWP), is implementing significant changes to Personal Independence Payment (PIP) and other disability benefits. These reforms aim to streamline the system, control rising costs, and encourage work participation among claimants. This article provides a detailed overview of the proposed changes, their potential impact, and the ongoing efforts to manage the process for new and existing claimants.

Proposed Reforms to Sickness and Disability Benefits

The government plans to save £5.4 billion by 2029-30 through reforms to sickness and disability benefits. These savings may be reinvested into back-to-work programs or used to offset government spending. The number of people claiming disability benefits has increased substantially, leading to rising costs, which are projected to exceed £60 billion by 2029.

Proposed reforms include a tiered payment model for PIP, potentially replacing monthly payments with one-off payments or vouchers for specific needs. A commission has suggested an ‘Additional Costs Disability Payment’ system with three payment levels based on support needs, emphasizing lifetime grants and collaborative assessments.

The government is considering requiring long-term sick benefit claimants to actively seek employment, potentially abolishing the ‘limited capability for work’ category under Universal Credit. Support programs like the Work Choice program are being examined. There is debate over replacing cash payments with vouchers, raising concerns about claimants’ autonomy.

Eligibility criteria for PIP are also under review, with potential changes to assessment processes and qualifying periods, particularly for mental health conditions. Reforms to the Work Capability Assessment (WCA) are planned to reflect the rise in home and flexible working, potentially removing the ‘limited capability for work and work-related activity’ category. These changes aim to encourage work participation, but there are concerns about the impact on claimants’ financial well-being. Some previous WCA consultation changes were deemed unlawful by the High Court.

Managing PIP Claims and Award Reviews

The DWP has confirmed that managing the customer journey time for new and existing claimants of PIP is a “priority”. People making a new claim for the disability benefit, worth up to £737 every four weeks, are being dealt with first to ensure they receive the financial support they need “as soon as possible”.

Minister for Social Security and Disabilities, Sir Stephen Timms reassured existing PIP claimants with an outstanding award review, or one coming up, that they will not see a break in payments – as long as they have “returned their information as required”. Sir Stephen also said the DWP “have been seeing continuing high levels of new claims which has impacted our capacity to carry out award reviews as quickly as we would like”.

In a written response, Sir Stephen said: “Managing customer journey times for PIP claimants is a priority for the department and we are working constantly to improve our service.

“Our aim is to make an award decision as quickly as possible, taking into account the need to review all the available evidence including that from the claimant. However, we have been seeing continuing high levels of new claims which has impacted our capacity to carry out award reviews as quickly as we would like.

“In order to deal with this demand, we have been prioritising new claims, to ensure new claimants are paid as soon as possible whilst safeguarding claimants awaiting award reviews, who have returned their information as required, to ensure their payments continue until their review can be completed.”

Support for Existing PIP Claimants

If you are an existing PIP claimant due an award review this year, just make sure you return the form DWP will send out and there will be no break in payments. Your award will automatically continue until an award review can be completed.

Earlier this month, the DWP said it ‘recognises’ the review process for PIP can be “unsettling for some claimants”. Sir Stephen made the comments in response to a written question from Reform UK MP James McMurdock on steps being taken to support existing PIP claimants through the review process.

Sir Stephen explained a number of measures DWP has in place which include offering PIP consultations in different formats to best suit the needs of claimants – by phone, in person or by video call. However, he also said more ‘in-house’ reviews conducted by DWP Case Managers can be completed without the need for a consultation where “sufficient evidence is provided by the claimant”.

He also reassured claimants that payments do not stop and automatically roll-on until a review can be completed, which also includes access to the Motability and Blue Badge Schemes. The DWP Minister also steered people to the GOV.UK website where they can learn more about the review process, before it happens.

Sir Stephen outlined the number of ways DWP is providing support. He explained: “In order to speed up the review process, DWP Case Managers can now undertake PIP reviews in-house, removing the need for a consultation, in cases where sufficient evidence is provided by the claimant. This takes away the stress of a consultation and enables a decision to be made more quickly for the majority of claimants.”

He also said cases “that do need to be reviewed by a Healthcare Professional, different types of assessment types are available depending on claimant circumstances”.

Providers can offer telephony, video or face-to-face assessments or reviews can again be undertaken, in some cases, using information provided without the need for a consultation.

For PIP claimants who have severe mental health or cognitive impairments, the DWP applies an “Additional Support marker to the case which protects the claimant from falling out of payment where they struggle to complete forms or engage in the process”.

Essentially, this means that the case will progress to a review even where a review form cannot be completed.

Commenting on review delays, Sir Stephen said: “We have taken steps to keep claimants informed and updated via text messages. In such cases, we routinely extend awards to ensure continuity of payments, enabling claimants (where appropriate) to retain eligibility for Motability vehicles and Blue Badges.”

Additional Help

If you need more time to complete the review form, contact the PIP enquiry line on 0800 121 4433.

Full details about the PIP review process can be found on GOV.UK here.

What to include on the PIP review form can be found on the Citizens Advice website here.

PIP Claimants in Scotland

There are 80,000 PIP claimants in Scotland due to transfer to Adult Disability Payment (ADP) by Spring 2025. These people will not be due a review from the DWP, one will be conducted after the migration process has been completed.