According to new UK government welfare reform proposals, more than one million people with mental health disorders might lose Personal Independence Payments (PIP) worth up to £737.20 every four weeks and instead get talking therapies.
Millions Face PIP Benefit Loss in Proposed DWP Reform
Scope, a disability organisation, called the planned changes to PIP "unexpected," whereas the Resolution Foundation warned that any big reform will also harm those with physical disabilities. Prime Minister Rishi Sunak stated on Friday that the current spending on benefits for persons of working age with disabilities or health conditions is £69 billion, which is "more than our entire schools budget; more than our transport budget; more than our policing."
He noted that if nothing changes, PIP spending is expected to increase by more than 50% over the following four years. Nearly 3.5 million people in the UK receive PIP, with 37% (1.3 million) claiming for psychiatric conditions.
PIP provides additional financial assistance to persons with disabilities, long-term illnesses, or physical or mental health conditions who require assistance with everyday duties or mobility.
Following the annual increase earlier this month, an effective application for PIP, or Adult Disability Payment (ADP), for people living in Scotland is now worth between £28.70 and £184.30 per week in additional financial support, and because the benefit is paid every four weeks, this equates to between £114.80 and £737.20 per period.
However, Rishi Sunak expressed concern that this payment in the system is "being misused".
Citing the need to "look again" at the PIP benefit, he stated that since 2019, the total number of people claiming PIP citing anxiety or depression as their main condition has doubled, and that it is "not clear they have the same degree of increased living costs as those with physical conditions."
A consultation has been scheduled to examine modifications to the qualifying requirements, assessment procedure, and forms of support that can be provided, with the suggestion of a "more objective and rigorous" approach needing "greater medical evidence to substantiate a claim."
It will also investigate whether some people with mental illnesses should receive talking therapy or respite care rather than monetary transfers.
Government Faces Backlash Over Proposed DWP Benefit Reforms
Scope's head of strategy, James Taylor, accused the government of trying to "slash disabled people's income by hitting PIP" during a cost-of-living crisis, calling the notion "horrific."
According to the Resolution Foundation think tank, the most significant statement of Mr. Sunak's address was the PIP consultation.
While it acknowledged that reform is unavoidable due to the increase in spending over time, it stated that Mr. Sunak had presented a "problem statement rather than a plan."
The organisation asserted: “While the speech set out the problem rising ill-health is creating for the Treasury, it did not offer a plan for addressing it, nor address any of the many difficulties involved in doing so.
“For example, while the Prime Minister made the case for reform on the basis of rising numbers of people with mental ill-health claiming benefits, any major reforms will also impact those with physical disabilities too.”
According to the foundation, disability reforms affect both family and public finances, and that individuals with disabilities "are among the poorest in society, with one in three adults in the poorest tenth of the population having a disability."
Work and Pensions Secretary Mel Stride said: "I believe our welfare system is about far more than benefit payments; it is about changing lives for the better.
"That is why we’re bringing forward the next generation of welfare reforms. We’ve already overhauled the outdated benefit system by introducing Universal Credit, and now we are building a new welfare settlement for Britain—one where no one gets left behind.
"The welfare reforms announced by the Prime Minister today will modernise the support available for those who need it the most, improve the value of the welfare system for taxpayers, and ensure that people are signed up to support back to work, not signed off."