PIP applicants are being presented with eight alternative payment options in advance of a potential reform that will replace direct cash payments with vouchers. In its Modernising Support for Independent Living: The Health and Disability Green Paper, the Department for Work and Pensions outlines measures to modernise the existing system.
"We need to make sure we have a system that is sustainable and fair for everyone," the DWP stated. PIP was created to help with the additional expenses that those with disabilities and medical problems must pay in order to live independently. Certain claimants will incur significant additional costs due to their disability, while others won't incur any significant charges. This Green Paper examines potential avenues for enhancing our
The proposed crackdown to cut the spiralling costs of Personal Independence Payment (PIP) could see vouchers, grants and shopping catalogues offered to those with disabilities and long-term health conditions instead of cash awards of up to £737 a month.
Around 3.5 million people receive PIP, including 2.6 million who are of working age. The DWP says it approves 33,000 new claims for PIP every month, more than double the rate before the pandemic. The "unprecedented" demand is fuelled by a rise in applications from people with mental health issues, which accounts for the majority of claims.
These are all the current PIP payments. There are two different components, each with a higher and lower rate. People can get any one or two of those, giving eight possible PIP combinations. All are detailed below.
Daily Living Component
Standard: £72.65 a week (from £68.10)
Enhanced: £108.55 a week (from £101.75)
Mobility Component
Standard: £28.70 a week (from £26.90)
Enhanced: £75.75 a week (from £71.00)
PIP awards are based on a weekly payment rate but are paid out every four weeks. So in months that span five weeks, you could get one PIP payment in your account at the start of the month and another at the end of the same month. Based on our calculations, here are all the possible payment amounts you could receive.
1. Standard daily living only
Payment rate: £72.65 a week
Monthly amount (every four weeks): £290.60
Annual amount (based on 52 weeks): £3,777.80
2. Enhanced daily living only
Payment rate: £108.55 a week
Monthly amount (every four weeks): £434.20
Annual amount (based on 52 weeks): £5,644.60
3. Standard mobility only
Payment rate: £28.70 a week
Monthly amount (every four weeks): £114.80
Annual amount (based on 52 weeks): £1,492.40
4. Enhanced mobility only
Payment rate: £75.75 a week
Monthly amount (every four weeks): £303
Annual amount (based on 52 weeks): £3,939
5. Standard daily living plus standard mobility
Payment rate: £101.35 a week
Monthly amount (every four weeks): £405.40
Annual amount (based on 52 weeks): £5,270.20
6. Standard daily living plus enhanced mobility
Payment rate: £148.40 a week
Monthly amount (every four weeks): £593.60
Annual amount (based on 52 weeks): £7,716.80
7. Enhanced daily living plus standard mobility
Payment rate: £137.25 a week
Monthly amount (every four weeks): £549
Annual amount (based on 52 weeks): £7,137
8. Enhanced daily living plus enhanced mobility
Payment rate: £184.30 a week
Monthly amount (every four weeks): £737.20
Annual amount (based on 52 weeks): £9,583.60
This means the minimum payment a person can receive will be £290.60 every four weeks, an increase of £18.20 from the existing £272.40. The maximum will be £737.20 every four weeks, an increase of £46.20 from the existing £691.
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