The UK's Labour party is considering significant reforms to its welfare system, potentially offering claimants services such as therapy or healthy meals instead of direct cash payments. This approach is part of a broader strategy to address the nation's growing welfare bill without resorting to what Labour terms 'crude cuts' to benefits.
The review, led by Stephen Timms, is examining the Personal Independence Payment (PIP), a key disability benefit in England and Wales. An interim report indicated that alternative forms of support might be more effective than current cash disbursements for some claimants. The number of PIP claimants has doubled since 2019, surpassing four million, with spending projected to exceed £41 billion by the end of the decade.
New research from the Good Growth Foundation, a think tank with close ties to the Labour party, suggests a significant portion of benefit claimants would be open to exchanging some of their cash benefits for services. The study of 1,000 claimants found that 49% would trade at least £20 per week for support like home assistance, physiotherapy, therapy, or skills training. One in three would exchange £50 weekly, equivalent to £2,600 annually.
Specifically, 20% of respondents would exchange £50 or more per week for home support such as a carer, while 19% would opt for physiotherapy and 18% for home adaptations. The think tank proposed that the Department for Work and Pensions (DWP) could offer a voluntary menu of services, allowing claimants to exchange part of their benefit for state-procured support at a reduced cost, potentially yielding billions in annual savings.
Louisa Dollimore, director of strategy at the Good Growth Foundation, stated that the benefits system should aim to help individuals live their fullest lives by investing in their potential through services like therapy, skills training, and job coaching. The DWP has acknowledged the need for PIP reform and is awaiting the final report from the Timms review, which is being co-produced with disabled individuals and is due later this year.