Labour-Linked Think Tank Suggests PIP Reform, One in Six Recipients May Not Need Benefits

A prominent think tank with close ties to the Labour party has suggested that one in six recipients of the Personal Independence Payment (PIP) disability benefit may not require continued financial support. The Resolution Foundation released findings indicating that the cost of PIP is escalating at an "unsustainable rate," with projections estimating the annual bill could reach £34.5 billion by 2030.

The foundation's analysis, based on a survey of 2,611 PIP recipients, found that 16 percent reported no additional costs associated with their disability. Among younger recipients, aged 16 to 24, this figure rose to 21 percent, with many reporting little limitation and no extra expenses due to their condition.

These recommendations could influence potential reforms to the PIP system, especially following the upcoming publication of a review by disability minister Sir Stephen Timms, expected after the October 28 budget announcement. The think tank's report suggests that a more refined system, capable of identifying claimants who do not face significant extra costs, could save up to £4.4 billion annually by removing cash payments for approximately 670,000 individuals based on projected caseloads for 2029-30.

The Resolution Foundation proposes that PIP assessments should include questions about whether claimants incur additional expenses due to their condition. For those deemed eligible, the foundation suggests potentially lower ongoing cash awards but with the addition of one-off payments to facilitate home adaptations. The report also advocates for more frequent, though "lower stakes," check-ins by the Department for Work and Pensions to monitor changes in claimants' conditions.

Lindsay Judge, research director at the Resolution Foundation, stated that the current system is failing claimants, with awards not fully reflecting the modern nature of disability and unsustainable spending increases. She added that a system better aligned with people's needs would mean that approximately one in six current PIP recipients who do not face significant limitations or additional costs would no longer qualify for cash support.

A spokesperson for the Department for Work and Pensions commented that PIP is awarded based on a functional assessment of how a condition impacts daily needs. They acknowledged that the Timms Review report highlighted PIP as no longer fit for purpose and indicated that its final recommendations would form the basis for sustainable reform.