People receiving Personal Independence Payment (PIP) may be missing out on vital financial support. Despite the obvious benefits of PIP itself, claimants could be entitled to discounts and additional financial assistance, worth thousands of pounds every year. These savings can go unnoticed, potentially leaving vulnerable individuals struggling financially, unaware of the full extent of their entitlements.
PIP, administered by the Department for Work and Pensions (DWP), is a benefit designed to support those with long-term health conditions, disabilities, or mental health challenges. However, beyond the direct payments of PIP, there is a range of additional savings and discounts that can make a significant difference to claimants’ everyday costs.
Council Tax and Vehicle Tax Savings
For those on PIP, one of the most impactful discounts available is a reduction in Council Tax. According to the DWP, individuals with disabilities, or those living with a disabled person, may qualify for a discount or exemption based on the size and value of their home. Depending on eligibility, a claim could result in savings of up to £2,280 per year. Specifically, properties could be reassigned to a lower Council Tax band, or claimants could receive up to a 17% reduction if their home is already in the lowest band.
Similarly, people receiving PIP may also benefit from discounts on vehicle tax. Those with the enhanced mobility component of PIP are entitled to a full exemption from vehicle tax, saving approximately £165 annually. Individuals receiving the standard mobility component may be eligible for a 50% discount. To apply, claimants simply need to submit their PIP award letter and vehicle details to the DVLA, or they can apply via their local Post Office.
Additionally, PIP claimants may be eligible for backdated Working Tax Credit payments if their PIP claim is successful and they were awaiting a decision prior to 5 April 2025. According to HMRC guidelines, if a claimant’s PIP decision leads to an increase in their tax credits, they can receive a lump sum for missed payments.
This backpayment could provide a much-needed financial boost. On the healthcare front, while receiving PIP doesn’t automatically qualify someone for free NHS prescriptions, many claimants may still be entitled if they meet certain criteria. Those receiving additional benefits or with a valid exemption certificate (such as a MedEx or MatEx) can access free prescriptions, helping to reduce healthcare costs for individuals managing ongoing health conditions.
Discounts on Travel, Water Bills, and Prescription Costs
Claimants of the mobility component of PIP can also access substantial travel discounts. The disabled railcard offers one-third off train fares, which can result in annual savings of £126, while many councils offer free or discounted bus passes, saving as much as £200 each year. These reductions help ease the financial burden for those with mobility difficulties, enabling greater independence.
Moreover, those receiving PIP may be eligible for the WaterSure scheme, which caps water bills for those with a medical condition requiring higher water usage, or for large families with children. This initiative could save claimants around £150 annually. Additionally, though PIP claimants are not automatically entitled to free prescriptions, they may qualify for NHS exemptions through other related benefits, further reducing healthcare costs.
These various financial benefits can significantly improve the quality of life for PIP claimants, but according to the latest figures, many fail to take full advantage of them. It’s clear that increasing awareness of these additional supports could provide much-needed relief to thousands of people across the UK.
