Latest news with #DisabilityBenefitsConsortium
Yahoo
18-03-2025
- Business
- Yahoo
The key PIP changes and what they mean for your benefit payments
Disabled people will miss out on vital disability benefits after the government announced it would be overhauling the welfare system on Tuesday. Personal independence payments — PIP — will undergo a series of changes that will limit who will be eligible for the payments. The government said the reforms are part of its plan "sets out decisive action to fix the broken benefits system". It added that those with the most severe disabilities will be protected. Read our live coverage of reaction to Labour's cuts to disability benefits here The Disability Benefits Consortium, an umbrella body representing more than 100 charities and organisations, condemned the 'cruel cuts'. and said they would push more disabled people into poverty, and worsen people's health.' PIP eligibility criteria tightened for those claiming daily living support will be tightened Assessment overhaul: Assessments will be now recorded to "establish trust" as part of an overhaul of the assessment system PIP voucher plans scrapped. These had been potentially mooted as part of a government consultation PIP will not be frozen or means-tested, as per previous reports, and will instead rise with inflation Here's a more detailed breakdown of what this could mean for claimants. From November 2026, those claiming the daily living element of PIP will need to score a minimum of four points during their assessment for the benefit in one single activity to qualify for support. Currently, claimants need to score a minimum of eight points across multiple activities to reach the threshold for support. Kendall has said this will only affect the daily living element of PIP, not the mobility element. According to i news, the new thresholds will exclude, among others, many autistic people, those with ADHD and mental health difficulties The charity Sense has called the cut "draconian", and said it is "deeply concerned" about the plans. "Personal independence payment (PIP) was never designed to help people find work," the charity's chief executive James Watson-O'Neill told Yahoo News. "It's about helping disabled people cover the extra costs of living with a disability, which often enables them to stay in employment." The PIP assessment is used to figure out how much financial support someone claiming PIP needs. The process has been a bone of contention for a lot of claimants, who find it undignified, inaccessible, and sometimes inaccurate. In response, the government will review the assessment to make sure "it is fit for purpose", and to "re-establish trust". It will also record assessments to "give people the confidence they're being done properly". In addition, if you claim PIP and universal credit, you will only need to go through one assessment in the future after the government confirmed the work capability assessment (WCA) for universal credit will be scrapped from 2028. Currently, PIP payments are made as direct bank transfers to a person's account. The Conservatives considered changing these payments to vouchers, so that people would have to use them in certain shops as a replacement for cash. At the time, the Disability Poverty Campaign Group branded the vouchers 'dehumanising' and said it would 'use all possible avenues to challenge the implication that disabled people eligible for PIP lack the capacity to manage cash-based income'. The Labour government has refused to rule out whether it will be continuing with those plans, up until this point. Now, it has said it will be scrapping the plans to make these voucher payments. Charities have repeatedly emphasised that PIP is a benefit that helps people with the extra costs of living with a disability, whether they have a job or not. The government has scrapped its plans to freeze or means-test PIP, which means the amount claimants receive will still rise in line with inflation. The amount you receive will also not be linked to how much you earn.
Sky News
18-03-2025
- Business
- Sky News
Government unveils benefit crackdown designed to save £5bn
The eligibility criteria for some disability benefits will be narrowed in a bid to slash £5bn from the welfare bill, Liz Kendal has announced. Speaking in the Commons, the work and pensions secretary said the number of new people claiming personal independence payment (PIP) is "not sustainable". She said the government will not freeze PIP - as reports had previously suggested - but instead make it harder to qualify for the daily living allowance component from November 2026. Personal Independence Payment (PIP) is money for people who have extra care needs or mobility needs as a result of a disability. People who claim it are awarded points depending on their ability to do certain activities, like washing and preparing food, and this influences how much they will receive. Ms Kendall said that from November 2026, people will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP. Currently, the standard rate is given if people score between eight and 11 points overall, while the enhanced rate applies from 12 points. The changes will not affect the mobility component, Ms Kendall said. It's not clear how many people will be impacted as a result. The Office for Budget Responsibility will set out their final assessment of the costings at the spring statement next week. Charities and unions reacted angrily to the announcement, with the Disability Benefits Consortium calling the changes "immoral and devastating". What other measures have been announced? Ms Kendall also announced a review of the PIP assessment, which she said will be done "in close consultation with disabled people, the organisations that represent them and other experts". 1:44 There will also be a consultation on delaying access to the health top up on Universal Credit until someone is aged 22, with the savings to be reinvested into work support and training opportunities. The government will also: Merge jobseeker's allowance and employment and support allowance Scrap the work capability assessment (WCA) for universal credit in 2028 Raise the standard universal credit allowance by £775 in 2029/30 Introduce a "right to try" initiative so people who want to attempt to get back into work won't lose their benefits while they do "This is a significant reform package that is expected to save over £5 billion by 2029", Ms Kendall said. The announcement comes as Chancellor Rachel Reeves struggles to balance the books due to a poor economy and geopolitical events, with further spending cuts expected in her spring statement next week. The cost of long-term sickness and disability benefits for working-age people has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years. Ministers have said there is also a moral case for change, with one in eight young people not in education, training or employment - prompting fears of a "wasted generation". Ms Kendall said that while more people are now living with a disability, the increase in those seeking disability benefits is disproportionate. Claims amongst young people are up 150%, while claims for mental health conditions are up 190% and claims for learning difficulties are up over 400%, she said. Tories 'held our country back' Ms Kendall blamed the Tories for creating a system that is "holding our country back". She acknowledged that some people can never work, but said many sick and disabled people want to "with the right help and support" and they should "have the same chances and choices as everyone else". Please refresh the page for the fullest version.
