The UK Government is set to unveil significant health-focused Personal Independence Payment (PIP) reforms within weeks, as part of a broader effort to address rising disability benefit claims.
With a 58% increase in PIP applications, the Department for Work and Pensions (DWP) is looking to reshape the system to encourage employment among individuals with health conditions.
Government to Unveil Disability Benefits Overhaul
The Health and Disability Green Paper, scheduled for release before the Chancellor’s Spring Statement on March 26, will outline proposals for changes to PIP and other disability benefits, according to DWP Permanent Secretary Sir Peter Schofield.
The review comes amid concerns that the sharp rise in claims does not correlate with a general increase in sickness across the UK population.
At a recent meeting of the House of Commons Work and Pensions Committee, Labour MP Damien Egan raised questions about the discrepancy between the growing number of claimants and health statistics.
According to a House of Lords Economic Affairs Committee study, the increase in benefit claims is not matched by a corresponding rise in the number of people reporting serious health conditions.
In response, Sir Peter acknowledged the complexity of the issue, stating that while health system data does not necessarily show a dramatic rise in illness, the DWP continues to see a steady flow of new PIP applications, with many claimants assessed as eligible.
The Government now aims to determine whether the benefit system is structured to best support those in need while also encouraging workforce participation.
Shift Towards Employment Support for Claimants
A key element of the upcoming reform is expected to focus on helping people with disabilities or health conditions stay in work, rather than moving them onto long-term benefits.
The Government has already launched the Keep Britain Working review group, led by Sir Charlie Mayfield, to explore how employers can assist workers through workplace adjustments.
Sir Peter highlighted the importance of shifting the focus of the system towards capabilities rather than limitations, stating: “How do we encourage people to stay in work when they develop a health condition? How do we encourage people as they navigate the benefits system not to talk about what they cannot do, but to talk about what they can do?”
While the exact details of the Green Paper remain under discussion, the reforms are expected to be subject to a 12-week public consultation following their announcement.
The proposed changes align with the Government’s broader strategy to reduce economic inactivity and support economic growth by reintegrating individuals with disabilities into the workforce.
