DWP alert: Major overhaul to PIP in 2025 - full breakdown of disability benefit changes
Jacob Rees Mogg offers his view on Brits claiming sickness benefits
GB NEWS
Major changes to Personal Independence Payment (PIP) are set to come into effect throughout 2025, affecting around 3.6 million people who currently claim the disability benefit in the UK.
The Department for Work and Pensions (DWP) will implement several significant reforms, including payment rate increases, changes to assessment processes, and a new study on how claimants use their payments.
Around 80,000 new applications are made for PIP each month, with approximately 230,000 people filing their first claim between August and October this year.
The changes come as DWP spending on the disability benefit is predicted to grow by 63 per cent over the next five years, rising from £21.6billion in 2023/24 to £35.3billion in 2028/29.
Payment dates for PIP will shift at the start of January 2025, as the DWP does not process payments on bank holidays. Those due to receive payments on January 1 will instead be paid on December 31.
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Changes are coming to PIP GETTYRegular payment schedules will resume from January 2, except in Scotland where New Year payments will also be made on December 31.
A significant change comes on January 3, when the Motability scheme's £750 New Vehicle Payment will be discontinued.
The £100 New Product Payment for scooters and powered wheelchairs will also end on this date. The New Vehicle Payment was originally introduced in 2022 to help with rising costs following the COVID-19 pandemic.
Claimants must complete their vehicle orders by January 3 to benefit from the payment, though collection can take place after this date. From April 2025, PIP payment rates will increase by 1.7 per cent in line with September's inflation figure.
The daily living component's standard rate will rise from £72.65 to £73.90 per week, while the enhanced rate will increase from £108.55 to £110.40. For the mobility component, the standard rate will increase from £28.70 to £29.20 weekly, with the enhanced rate rising from £75.75 to £77.05.
Claimants eligible for both enhanced rates could receive up to £749.80 every four weeks under the new rates. PIP is made up of two components - daily living and mobility - and claimants can receive either or both, depending on their needs.
Each component has two rates - standard and enhanced - based on how their condition affects them.The DWP will conduct a new study into how PIP payments are used by claimants, with findings expected in summer 2025.
Sir Stephen Timms, DWP Minister for Social Security and Disability, said: "There is no objective way of deciding what an adequate level of PIP should be, as everyone has different requirements reflecting their own circumstances and priorities."
The study will include input from disabled people's organisations, disability charities and academic experts. Scope, one of the organisations involved, has highlighted concerns about payment adequacy.
David Southgate, policy manager for Scope, said: "Life costs more if you are disabled. Scope research shows that these costs add up to on average £1,010 a month for disabled people to have the same standard of living."
LATEST DEVELOPMENTS:
The cost of benefits is set to rise to £100bn by 2030GETTY/PALabour has confirmed it will publish its own proposals for reforming disability benefits, moving away from previous Conservative plans that included replacing cash payments with vouchers.
Work and Pensions Secretary Liz Kendall said: "I will be putting forward our own proposals to reform sickness and disability benefits. This is extremely difficult and I know people really want more detail, but we won't do that until we're absolutely ready and have had the proper discussions with people."
A consultation on the reforms is expected in spring 2025. The Government has indicated it wants to overhaul the health and disability benefits system to better support people entering and remaining in work.
Government sources have pushed back against suggestions that PIP could become means tested, though this has not been completely ruled out. The Government has announced £3.5million in funding to be shared across 17 NHS areas to investigate new treatments for musculoskeletal conditions.
These conditions are the second most common reason for economic inactivity after mental health, affecting 646,000 people. While PIP can be claimed regardless of employment status, 1.1 million people currently receive PIP due to musculoskeletal conditions
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