The Department for Work and Pensions (DWP) is planning a significant change of Personal Independent Payments (PIP), considering implementing a catalogue or voucher system to replace the standard payment schemes.
These important changes are outlined in a green paper, and a consultation has been introduced to collect input from benefit claimants.
DWP Considers Non-Cash Vouchers as Alternatives to PIP Payments in Welfare Consultation
The consultation's initiation reviewed modification to the PIP and Universal Credit frameworks. The DWP suggested in the green paper that routine payments might be swapped for non-cash vouchers, as proposed by the conservative government. This change could considerably affect how benefits are managed.
Currently, people who qualify for PIP from the DWP can get a weekly payment worth up to £184, which totals around £9,580 annually, addressing various health issues and disabilities.
In the Green Paper, the government insisted it intended for 'everyone to have a chance to shape the modernisation of the welfare system. The findings of the consultation, which closes on Tuesday 23 July, will inform future reforms. '
The consultation is not over, and these are the suggestions being reviewed, as reported by Chronicle Live.
Voucher system
The Green Paper indicates that the Department for Work and Pensions (DWP) is considering to implement new payment methods. These methods include a voucher system to provide better assistance to those who need it the most. It also suggests that the DWP is looking at how international institutions handle disability benefits.
Andy Cook, Chief Executive of the Centre for Social Justice, has stated: “With the welfare system now grappling with the combined challenges of economic inactivity, school absence and mental health, this consultation provides a meaningful opportunity to shape the future of Britain's welfare state.”
He went on to say: “We owe it to those most struggling to make sure the benefit system provides the best support to those who need it. And with costs skyrocketing, it is time to bring the welfare system into the post-lockdown age.”
Catalogue/shop Scheme
To better assist disabled people, a catalogue/shop scheme is being considered. This would feature an approved list that disabled people could rely on to pick affordable or entirely free items, which is especially suitable for equipment and aids.
One-off Grants
One-off grants are expected to cover substantial expenses, including home modifications or costly equipments. This could require people to present evidence of their medical status in order to be eligible for such equipments or modifications.
Receipt-based System
A receipt-based system is also under consideration, where claimants would purchase aids themselves and then provide proof of purchase to claim a reimbursement. This could be compared to Access to Work, which offers financial assistance for equipment and other expenses to help disabled people to obtain and maintain employment.
Eligibility
Other forms of assistance might include healthcare services, social care services, and essential respite facilities, all crucial to helping individuals reach their full potential and maintain self-sufficiency.
The guideline states: “We would like to understand whether some people receiving PIP who have lower, or no extra costs, may have better outcomes from improved access to treatment and support than from a cash payment.”
Assessments
The review also examines whether certain groups need more assistance than they currently get, and whether this support should be financial or take other forms such as enhanced access to health services including mental health care or physiotherapy, or increased support from local authorities.