A new benefit that would replace the Personal Independence Payment (PIP) for millions of people in the UK has been proposed by a panel of independent experts.
Claimed by 3.7 million people, PIP is one of the main health or disability-related benefits that can be accessed in the UK. It is designed to help with extra living costs for those who have a long-term physical or mental illness that affects their ability to do everyday tasks or get around.
The benefit was at the centre of Labour’s proposed £4bn in welfare cuts earlier this year, until fierce criticism and a backbench rebellion forced ministers to partly relent on the plans.
Proposed by the Commission for Social Security, the ‘Additional Costs Disability Payment’ would offer a radical alternative to the current system, which has long drawn criticism from campaigners for being long-winded and inaccessible.It would offer a “constructive, workable alternative” to PIP, its report claims, overhauling the current “deeply flawed” system.
Following the government’s U-turn – which will still introduce a cut to the health-related element of Universal Credit from next year – PIP is now being reviewed by disability minister Sir Stephen Timms.
The government says the purpose of this review is not to make savings, but to ensure PIP is fair and sustainable going forward. It details that the review, expected to report in Autumn 2026, will be co-produced with disabled people and organisations that represent them.
Similar to the current rules, the Commission’s proposals would see PIP assessments take into account how a person’s health condition affects their daily life. However, it would also factor in the additional costs that this incurs to ensure these are fully covered.
Another change would see the “stressful” points-based assessment replaced with a more tailored process, with assessors required to have a good understanding of the social barriers caused by disability.
Support and advocacy would also be provided throughout the process, with the applicant consulted on the final decision. Children and people of state pension age also become eligible under the changes.
Pointing to criticisms that Labour’s drive reform PIP was largely not open to consultation, the Commission adds that its proposal has been drawn up in consultation with 5,000 disabled people. This demonstrates effective co-production, it says, rather than “lip service.”
Rosa Morris, Commission on Social Security Project Worker, said: “We’re incredibly proud of this proposal, which has benefitted from over 5,000 people’s insights and contributions during our consultation earlier this year. It demonstrates that co-production of social security policy is possible.
“The upcoming Timms Review and wider government must listen to calls from disabled people and their organisations and commit to genuine co-production.
“For disabled people, we hope this proposal offers new hope, and something positive to campaign for, after 15 years of brutal cuts and determined resistance.”
A DWP spokesperson said: “Through the Timms Review we are looking at the PIP assessment as a whole to make sure it is fit and fair for the future, and crucially it is being co-produced by disabled people and the organisations that represent them.
“More widely, we’re reforming the welfare system by tackling the perverse incentives that encourage ill health, while shifting our focus from welfare to work, skills and opportunities. This will help more people move into work and out of poverty, as part of our Plan for Change.”
