Liz Kendal MP, the Secretary of State for Work and Pensions who was recently appointed, has not yet responded to calls from leading anti-poverty and disability rights groups. They implore her to abandon planned reforms by the Conservative Party on Universal Credit (UC) and Personal Independence Payment (PIP).
Among those groups calling on the Labour government to prioritize cancelling these plans are notable organizations including Joseph Rowntree Foundation, Mind, and Disability Rights UK.
Yet there has been no official communication from the Department for Work and Pensions (DWP) regarding scrapping of this reform with new ministerial team. They might be waiting for a public consultation on them, which ends on 22nd July, before making any absolute decisions.
PIP Proposed Reforms
The Conservatives propose saving around £12 billion per year by the end of the next parliamentary term, according to ‘Modernising Support for Independent Living: The Health and Disability Green Paper’. This includes converting cash payments under PIP into alternative forms such as vouchers or grants, or allowing a choice to support aids from a catalogue.
Another manner to go about this is by changing the rules for qualifying, reassessing how it’s done and handing over responsibility for paying for PIP to the NHS and local councils. At present, over 3.5 million adults in Scotland, England, and Wales get up to £737.20 every four weeks under PIP.
Furthermore, all 173,000 individuals in Scotland who presently receive PIP or Disability Living Allowance (DLA) will not be affected by any suggested alterations. However, they will be transferred to Adult Disability Payment (ADP) before next year.
According to these charities, these reforms would not help reduce economic inactivity as envisaged; rather, they would cause more poverty among the seriously ill and disabled people, putting them at a risk of being sanctioned.
Other Options to Regular Cash Payments
The Green Paper considers various support models beyond regular cash payments:
- Catalogue/Shop Scheme: Disabled individuals could select items from an approved list at reduced or no cost, likely more suitable for equipment and aids rather than services.
- Voucher Scheme: Vouchers could be issued to cover specific costs, applicable for both equipment and services.
- Receipt-Based System: Claimants would purchase aids or services themselves and claim back a portion of the cost upon providing proof of purchase, similar to the Access to Work scheme.
- One-Off Grants: These grants would cover significant expenses such as home adaptations or costly equipment, contingent on medical evidence demonstrating the need.
Anela Anwar, who is the Chief Executive of a charity named Z2K, which fights against poverty, said: “The plans to restrict vital income and remove protections for those of us who become seriously ill or disabled in the future are misguided and dangerous.
“It was a relief that the previous government ran out of time before the election to implement the plans, and we were hopeful that a new government would not take them forward. But we have heard nothing to date that has put our minds at ease.”
Ms Anwar added: “We urge the new Secretary of State to put scrapping the plans at the top of her to-do list. Instead of introducing ever tougher cuts and sanctions, the new government must look to remove the barriers to economic activity that are built into the social security system, through addressing the inadequacy and risk that currently characterise it. Seriously ill and disabled people should have the security we all need — the job starts now to make this a reality.”
The full letter can be read online at z2k.org website.
PIP Change Potential Repercussions
According to OBR sources, 424000 people with severe mental health or mobility issues could lose more than £400 per month under universal credit through proposed changes in WCA and also face increasing punishments. Only 3% of such persons are predicted by OBR to re-enter labour force within four years.
The ten organisations argue that any future change in PIPs should be developed alongside disabled people like it is done in Scotland, where adult and child disability payments and the upcoming Pension Age Disability Payment, set to launch in October, are designed through participation.