DWP update on major changes to PIP and Universal Credit

The DWP has issued an update on an upcoming review of PIP (Personal Independence Payment). The study is being headed up by DWP minister Sir Stephen Timms and will look at role of the PIP assessment and the criteria its uses. The benefit helps cover the extra costs of living with a long-term health condition or disability, providing payments of up to £750 each four-week pay period.

Labour had previously set out plans to tighten the eligibility rules for the benefit, but after widespread opposition from MPs, the Government announced it would not make any changes until after the review is completed. The review is also important as the PIP assessment is set to become the sole assessment used to decide how much health-related benefits a person gets.

The Work Capability Assessment commonly used for Universal Credit claimants is set to be scrapped and replaced with the PIP assessment. Liberal Democrat MP Martin Wrigley asked in Parliament what timelines the Government has set for the review.

Mr Timms provided a response. He said: "We are committed to co-producing the review with disabled people, the organisations that represent them, clinicians, experts, members of Parliament and other stakeholders to ensure that a wide range of views and voices are heard.

"We have engaged over the summer to consider the process for the work of the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon. We will share more details on this and how disabled people and other stakeholders will be involved in the review as plans progress."

The minister said the Government is committed to finishing the review by Autumn 2026 and then reporting to Parliament over the changes.

What were the proposed changes to PIP?

In efforts to reduce its welfare spending, Labour set out plans to add a new rule to qualify for the daily living element of PIP. The benefit includes a daily living part and a mobility part, with a lower and higher rate depending on your level of need.

These are the current payment rates for PIP:

Daily living part

• Lower - £73.90
• Higher - £110.40

Mobility part

• Lower - £29.20
• Higher - £77.05.

You currently need to score a total of eight points across the 10 daily living activities you are assessed on, to get the lower daily living part, and at least 12 points to get the higher rate. The plans were to add a rule that you needed to get at least one score of four to get the daily living element.

If you were previously eligible for the higher living part and lost out as a result of the changes, your payments would drop by almost £5,750 a year.