Health and Disability Reform

Monday 29th April 2024 Written Statements

[The Secretary of State for Work and Pensions (Mel Stride)]

I wish to inform the House that my Department has today published a Command Paper launching the public consultation entitled “Modernising support for independent living: the health and disability green paper”. The consultation seeks views on options to fundamentally change the personal independence payment.

PIP was introduced in 2013 to provide non-means-tested cash payments to disabled people and people with health conditions, to help them live independent lives. The intention was that PIP would be a contribution to extra costs arising from their disability and a more sustainable, dynamic benefit that would also pay greater attention to mental health than its predecessor, the disability living allowance.

This Government’s priority is to make sure that our welfare system is fair and compassionate—fair on the taxpayer by ensuring that people of working age who can work, do work, and fair on those who are in most need of the state’s help. Welfare at its best is about more than just benefit payments; it is about changing lives for the better. However, our current disability benefit system for adults of working age is not providing support in the way that was intended.

We know that any additional costs arising from a disability or health condition—which PIP is intended to help with—can vary significantly and are unique to the individual’s circumstances. Some people on PIP may have relatively small one-off or ongoing additional costs related to their disability or health condition that are fully covered by their award, while others may find that the current system does not provide enough support to meet their needs. However, the current system operates a one-size-fits-all model and does not channel people towards bespoke support tailored to an individual’s needs. We want to understand whether there are other forms of support that may be more suitable for everyone, including people with mental health conditions.

In the decade since the introduction of PIP, the nature and understanding of health and disability has also changed profoundly, and the clinical case mix has evolved in line with these broader changes; for example, there are many more people applying for disability benefits with mental health and neurodivergent conditions.

Costs and case loads have risen in line with this. In 2019, there was an average of 2,200 new PIP awards a month in England and Wales where the main disabling condition was mixed anxiety and depressive disorders. That has more than doubled to 5,300 a month in 2023. Over the coming 5 years, PIP spending is expected to grow by 63% (£21.6 billion to £35.3 billion, 2023-24 to 2028-29). Each month there are now 33,000 people joining the benefit, around double the rate before the pandemic. The forecast spending on people of working age with a disability or health condition for 2024-25 is £69 billion.

We believe it is the right time to look again at ensuring Government support for people with disabilities and long-term health conditions is focused where it is most needed.

This Green Paper looks at whether there are ways we can improve how we support people in a way that is also fairer to the taxpayer than the current system is. Our approach to transforming the benefits system for disabled people and people with long term health conditions is guided by three important priorities. These are:

Providing the right support to the people who need it most.

Targeting our resources most effectively.

Supporting disabled people to reach their full potential and live independently.

This Green Paper will explore changes we could make to the current PIP system to ensure support is targeted where it is most needed. These options include:

Considering options for amending PIP eligibility within the current functional assessment framework.

Exploring the option of an alternative assessment model focused more on a person’s condition.

Looking at different models that could be used to meet the extra costs disabled people and people with health conditions face.

Exploring greater alignment of the support offered by PIP with existing local services.

Responsibility for health and disability benefits lies with both the UK Government and devolved Administrations. We will continue to work with the devolved Administrations to consider the implications of the proposals in this Green Paper in Scotland, Wales, and Northern Ireland.

We will always be committed to supporting the most vulnerable. We believe that now is the right time to look again at ensuring that Government support for people with disabilities and long-term health conditions is focused where it is most needed.

[HCWS432]