Disability benefit review considers alternatives to cash payments
A comprehensive review of basic disability benefit in England and Wales is considering whether claimants could be offered alternative support rather than cash payments in some cases.
Sir Stephen Timms, the minister leading the review, told MPs the government would “not walk away” from providing cash to help disabled people with extra living costs.
But the minister said the review was examining whether some people claiming personal independence payment (Pip) could be directed to other types of support instead.
Alternatives to cash payments may include NHS treatments, specialist equipment or employment support.
Inside First findings published this week, externalSir Stephen’s review found that Pip was not working for millions of disabled people and needed radical change.
The interim report, which declared Pip “unfit for purpose”, said people applying for benefits had described the process as “dehumanising” and a barrier to work.
Pip claims, particularly for conditions such as anxiety and ADHD, have soared in the years since the Covid outbreak, placing increasing pressure on public finances.
Approximately 10 million working-age people (24%) report living with a disability; this rate was below 17% in 2013/14.
The cost of Pip is expected to rise from £15 billion in 2020 to over £41 billion in 2030.
The review suggests the Pip evaluation system needs a major overhaul.
A Department for Work and Pensions spokesman said the review’s final recommendations will be released this autumn and “will form the basis of deep, sustainable reform”.
On Thursday the review’s co-chair Sharon Brennan told the BBC that she and Sir Stephen were considering how they could change the Pip assessment process.
“It’s a very uncertain process right now,” said Brennan. “It’s a yes or no answer, do you or don’t you get cash, and we don’t really talk to people about what extra support they need to live the lives they want to live.”
He said the review would question whether the different levels of cash support offered to Pip claimants “truly reflect the real-life impact of disability” in 2026, and stressed that increasing “workforce participation” would be a key part of any reform.
Speaking in the House of Commons on Thursday, Sir Stephen said the review was “clear that it is vital that cash is provided to cover the additional costs of disability”.
He added: “We won’t take away from the importance of this, but I think there’s a question about whether the process can direct people to benefits that might be valuable to them in addition to, or in some cases, in lieu of cash payments.
“There is help and support that people need, and I think the process can help guide people to that.”
He said the system “can direct people to the right place in healthcare”, adding that the review “looks at all of these issues and we will come back with recommendations in our final report”.
The interim report states that the needs and extra costs of disabled people “vary significantly and the current system does not always recognize these differences or offer appropriate support”.
