DWP payment PIP will not become means-tested

The DWP has responded to concerns PIP could become means-tested as the benefits system is set to be changed.

Ministers have published a Health and Disability White Paper which outlines plans to reform how Universal Credit works.

The limited capability for work and work-related activity element are set to be removed and replaced with a health element.

At present, a person has to undergo a Work Capability Assessment (WCA) to establish they have limited capability for work or limited capability to prepare for work, and then to access extra support through Universal Credit.

The WCA is to be scrapped with individuals to instead be assessed using the assessment they undergo to determine the level of PIP payments they need, which will determine if they get the new health element.

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The reforms are intended to improve the system and make it easier for people on benefits to get back into work.

But MPs have raised concerns about what other changes could be brought in as a result and if PIP could become means-tested.

PIP is not currently means-tested meaning a person’s payments are not affected by their income or savings, with the support they get determined by how their condition affects their daily life and ability to move around, but Universal Credit payments are means-tested.

Disabilities minister Tom Pursglove said that “PIP will not be means-tested” and will stay separate from Universal Credit.

He said in a written response to a Parliamentary question about the proposals: “We heard the views of more than 4,500 people and organisations and discussed our proposals at over 40 public events.

“In the consultation, people with long-term or chronic health conditions said that they should be assessed less frequently and that the PIP assessment and Work Capability Assessment (WCA) overlapped, leading to additional stress.

“We know that a large number of people who receive a health or disability benefit currently need to complete two applications and undergo two assessments to receive additional support for their disability or health condition.”

The minister said the consultation showed people found these assessments “contained unnecessary duplication and that they caused anxiety and distress.”

He said this was partly due to a concern that work or work-related activity could result in a repeat assessment with a person losing out on their benefits.

Mr Pursglove said: “These issues and barriers cannot be fully resolved by making small changes to the health and disability benefits system, but instead require fundamental changes to the design of the system.”

PIP claimants can get up to £691 a month through the benefit if they get the two higher amounts for the payments.

These are the current payment rates:

Daily living component

  • Lower – £68.10
  • Higher – £101.75.

Mobility component

  • Lower – £26.90
  • Higher – 71.

A person has to be affected by their condition in carrying out daily tasks and in getting around.

An individual also has to expect their condition to affect them for at least 12 months from when it started to qualify for the support.

PIP has been replaced in Scotland by the Adult Disability Payment which pays the same rates and has the same eligibility.

The devolved benefit is administered by Social Security Scotland.

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