One million Brits set to lose PIP funds as full extent of DWP welfare cuts revealed

The changes to the eligibility criteria for Personal Independence Payments (PIP) was one of the most significant moves announced by Liz Kendall in the Commons on Tuesday (March 18)

A whopping one million Brits are on the brink of losing their personal independence payments (PIP) after the Government’s latest round of welfare cuts, a think tank has warned.

The overhaul of PIP eligibility, aimed at helping those with disabilities or long-term health issues cover additional living expenses, was among the announcements made on Tuesday.

Ruth Curtice, Chief Executive at the Resolution Foundation, spoke to BBC Radio 4’s Today programme and said: “The Government haven’t given us a number for how many will be affected, and because they’ve made quite a detailed change to the system, we can’t tell exactly who will be affected.”

She didn’t hold back, adding: “I think it would have been good if the Government had told us yesterday, but given what they’ve told us about how much they’re planning, the Resolution Foundation estimate it’s around a million people who are losing their entitlement to PIP completely.”

The proposed shake-up touches on who gets benefits, the cash amount doled out, and the duration for which folks can claim them, she explained.

Curtice continued: “The Government’s made significant changes in all of those areas, but most of the savings we understand are coming from changes to who qualifies.”

She put the £5 billion figure into perspective, saying: “You can think of £5 billion as small or large, depending on your perspective, getting those from a million individuals means that for those individuals, it’s really significant income loss.”

The Resolution Foundation, an independent British think tank, is on a mission to boost the living standards of low to middle income families.

This comes in response to a minister’s statement that individuals suffering from conditions like anxiety will still be eligible for PIP if their well-being is significantly impacted.

Social security minister Sir Stephen Timms was quizzed about whether the announced £5 billion cuts to benefits, which he said would primarily stem from tightening eligibility for PIP, would exclude people with anxiety from claiming it.

“No, it depends what the effect of the condition is on people’s wellbeing, and the indicators are all published and set out,” he explained on Times Radio.

“So if you have difficulties doing certain things, then you get points on the PIP assessment. And the number of points you get determine how much PIP you get.”

Sir Timms admitted that the cost of PIP will continue to climb, but “nothing like as fast as if we didn’t act” and claimed the changes will render the cost “sustainable in the long-term”.

He stated that an impact assessment for the proposals can’t be released yet due to containing “market sensitive data”. It’s slated to be published alongside the Chancellor’s spring statement next week.

The social security minister also disclosed that the Government is mulling over extending disability living allowance to parents following the death of a child they have quit work to care for.

Sir Timms revealed to Sky News: “One thing we are looking at is, and we’re taking legal advice about this at the moment, the possibility of extending Disability Living Allowance for children, the benefit that’s paid when children are very unwell, for a period after the child’s death.”

He highlighted the dual nature of the struggle parents face, saying: “Just to support parents during what otherwise (is) obviously a terribly, terribly difficult time, but also a financially difficult time for them. That’s a possibility that we are looking at at the moment.”

In other news, the way PIP points are tallied is also set for an overhaul. Following Liz Kendall’s speech on Tuesday, documents were released outlining tougher measures for PIP claims, with higher eligibility thresholds.

The government intends to cut off ‘lower needs’ individuals from the daily living component of PIP. Claimants will still be assessed based on their ability to perform various daily living and mobility tasks, with each task scored between 0 and 12 points.

Currently, claimants need to amass at least eight points across all activities to qualify for the daily living component of PIP.

This significant policy shift, as detailed in the Green Paper, will necessitate new legislation, meaning MPs will have to cast their votes to bring it into effect.

If given the green light, this will be applicable to all new claims. For existing claimants, their eligibility will be determined at their next award review.

This could result in people losing their entitlement to the daily living component of PIP and possibly other benefits tied to this.

The government has expressed that it is ‘mindful’ of the potential impact on individuals and is mulling over the best ways to assist those affected.

This might encompass “transitional protection” for those who no longer qualify for PIP and the entitlements associated with their award.

A consultation on the proposed changes has now been initiated and will stay open until the end of June.

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