Personal Independence Payment

Personal Independence Payment (abbreviated to PIP and usually pronounced as one word) is a welfare benefit in the United Kingdom that is intended to help adults with the extra costs of living with a long-term health condition or a disability.

It is non-means-tested, non-contributory and tax-free; it is not linked to a person's ability to work and it is available equally to people in or out of work. It is not intended to be a substitute for a person's earnings, unlike Employment and Support Allowance (ESA) or ESA's predecessor, Incapacity Benefit.

Eligibility for PIP is based upon the practical effects of a condition on a person's life, rather than the condition itself. It is not currently available to children who still claim Disability Living Allowance and are invited to claim PIP from their 16th birthday; it can be claimed by adults under the State Pension age, and people already on the benefit will continue to receive it after they retire. PIP and the benefit it replaces are predominantly received by older people, because increasing age is the main risk factor for developing disabling diseases.

Introduction

PIP was introduced by the Welfare Reform Act 2012 and the Social Security (Personal Independence Payment) Regulations 2013 (which have been repeatedly amended). It began to replace Disability Living Allowance (DLA) for new claims from 8 April 2013, by means of an initial pilot in selected areas of north-west and north-east England. A full roll-out across Great Britain was planned for October 2013.[1][2] However, this roll-out was delayed – primarily because the main contractor, Atos, wanted to ensure that the process was as reliable as possible; also, the assessments took much longer than expected, and assessors were hard to recruit - and as a result ministers announced that the roll-out would happen more gradually than originally planned.[3]

Although PIP was expected to cut costs by 20% over the longer term, costs were forecast to rise by £1billion to £15.4billion in 2015-16, partly due to a rise in mental health issues and learning disabilities.[4][5]

New rules were introduced in 2017 and many charities say disabled people will be left without support. The Disability Benefits Consortium (DBC) (comprising charities including Parkinson's UK, the MS Society and Mind) claimed about 160,000 people receiving PIP would be affected by proposed changes. Phil Reynolds of the consortium said, "Across the DBC we have had our helpline and advice services inundated by calls about PIP since it was introduced. Instead of supporting disabled people, the benefits system seems increasingly rigged against them. The whole system needs urgent improvement, in order to accurately assess the support they need. Disabled people cannot afford to wait." Charities that represent mental health and learning disability groups claim the changes do not recognise that the costs connected with those conditions are as severe as for other impairments.[6] the changes were reversed in January 2018 following the decision not to appeal a high court ruling.

Claiming PIP

Claims will usually but not always be started over the phone. Most people claiming PIP are required to undergo assessments to prove their eligibility for the benefit. Payments are varied according to the severity of disability as decided by the tests and relate to ability to carry out daily living activities and level mobility. Claimants are also required to undergo periodic re-assessments to ensure ongoing eligibility for the benefit; depending on the type of disability, a person may be given a short award of up to two years or longer PIP award which would last for up to five or ten years.[1] The PIP Assessment Guide (Updated on 1 May 2016) states: 'It would not be practical for the assessment to take account of the impact of a health condition or impairment on all everyday activities, nor to seek to include all possible areas where extra costs may be generated.'

PIP is not available to children under sixteen and PIP claimants must apply before they reach State Pension age[7] as new PIP claims cannot be made after that age. DLA continues for children, and for existing recipients aged sixty four or over on 8 April 2013; other people currently receiving DLA will be asked to claim PIP instead at some point.[8]

Assessment process

Responsibility for the tests has been outsourced by the DWP to two private companies, Independent Assessment Services (formerly known as Atos Healthcare) in the north of England, London and southern England, and Capita Business Services Ltd in central England, Wales and Northern Ireland. In 2018 37% of the 220,000 face-to-face assessments conducted by Capita were rated by DWP auditors as of an unacceptable standard, to need changes, or demonstrating that the assessor had failed to carry out their role properly. There was also concern at the delay in performing assessments.[9]

The success rate for Mandatory reconsideration in relation to Personal Independence Payments is 15%, but 75% of appeals against made to a tribunal were successful in 2018/19.[10]

Eligibility

To qualify for PIP you must be between 16 and State Pension age and living in Great Britain and also:

  • have had difficulties with daily living or getting around (or both) for at least 3 months
  • expect these difficulties to continue for at least 9 months (unless you’re terminally ill with less than 6 months to live)[11]

Reaction and analysis

In April 2013 Iain Duncan Smith, the sponsor of the Welfare Reform Act, expressed his support for the changes to disability benefits brought about by the new law. He was critical of the older system of disability benefits which awarded an allowance to claimants with no further systematic checks to assess if the claimant's condition had improved or worsened. Iain Duncan Smith stated that, by requiring claimants to undergo periodic assessments, the system could be targeted at those most in need whilst preventing payments being made to people who had recovered from a temporary disability.[12]

The UK disability rights organisation Scope has been critical of PIP and, while it expressed support in principle for assessing claimants more carefully, took the view that the assessment criteria were flawed, would cause undue hardship to disabled people and were too strongly focused on cutting welfare budgets.[13]

Prior to the introduction of PIP, work capability assessments carried out by the private contractor Atos were subjected to critical scrutiny in Parliament following a number of controversial decisions in which disabled individuals were denied benefits and required to look for work, work they could not do due to their disability.[14]

In June 2014 the Public Accounts Committee expressed the view that the implementation of the PIP scheme had been "nothing short of a fiasco", a charge rejected by the Government.[15]

PIP may affect entitlement to disability "blue badge" parking permits[16] and the Motability scheme.[17]

The Multiple Sclerosis Society of Great Britain produced a report about its members experiences of the test in September 2015. 1,780 participated. 42% of those who had a face-to-face assessment said the hidden symptoms of the condition had not been taken into account. More than a third said face-to-face assessments had caused their condition to relapse or deteriorate.[18]

Fraud

One person is known to have complained about pain and received PIP while conducting "strenuous demonstrations".[19]

Daily living component

There are two components of PIP: daily living and mobility needs. Each component can be paid at standard or enhanced rates.[20]

The PIP daily living component is paid at one of two rates: standard or enhanced.[21] Individuals may be entitled to the daily living component if they need help with things like preparing or eating food, dressing and undressing, or making decisions about money.

Daily living component Weekly rate 2020-2021
Standard rate £59.70
Enhanced rate £89.15

Eligibility

To qualify for the daily living part of PIP, you must need help more than half of the time with things like:[11]

  • preparing or eating food
  • washing, bathing and using the toilet
  • dressing and undressing
  • reading and communicating
  • managing your medicines or treatments
  • making decisions about money
  • engaging with other people

Mobility component

The PIP mobility component is also paid at one of two rates: standard or enhanced.[21] Individuals may be entitled to the mobility component if they need help going out or moving around.

Mobility component Weekly rate 2020-21
Standard rate £23.60
Enhanced rate £62.25

The Enhanced rate of the mobility component of PIP can be exchanged for a vehicle or scooter on the Motability Scheme.

Over 50,000 claimants lost their cars because they can walk 20 metres even if they cannot walk 50 metres. Many claimants had the full benefit reinstated on appeal but they lost their cars while they were waiting to appeal and possibly lost their job as well.[22]

In December 2017 the High Court of Justice ruled that restrictions to the mobility component which stated that psychological distress could not be considered in deciding if a person could walk discriminated against people with mental health problems. In January 2018 Esther McVey announced that the government accepted this ruling.[23]

Award duration

PIP is usually awarded for a fixed period, after which the claimant will have to re-apply if necessary. The exception is for the minority of claimants for whom PIP is awarded ongoing as their situation is not expected to improve or get worse.

  • Shorter term awards: Up to two years.
  • Longer term awards: Up to ten years.

All awards, including ongoing awards, are subject to review at any time.[24] Campaigners have expressed concern for patients with progressive, incurable conditions such as rheumatoid arthritis, Parkinson’s disease, multiple sclerosis, motor neurone disease are made to attend reassessments though it is unlikely they will get better and they will probably only get worse. Carol Monaghan said she would challenge four cases of patients with multiple sclerosis being called for reassessment despite their illness worsening. “MS is a progressive condition. They’re never going to be any better than they are at the moment, so they should never be asked to go for a reassessment. Some of these people are still able to walk to a certain extent, so they get themselves in, just about, and then they’re being told, ‘You look fine,’” she said. Phil Reynolds of Parkinson's UK said about a quarter of British people with Parkinson’s lost some or all their benefit after reassessments, but got payments reinstated after appeal. “It’s absolutely crucial that the DWP looks again at the broken PIP assessment to ensure people with long-term conditions get the support they so desperately need, rather than rigging the system against them,” he said. Almost half multiple sclerosis patients claiming PIP must be reassessed inside two years, the MS Society claims. “We’re concerned about the number of people with MS being inappropriately reassessed, especially when we know assessments can cause stress and anxiety, and in some cases exacerbate MS symptoms. With more than 100,000 people living with MS in the UK, the PIP system needs to accurately reflect the realities of living with a fluctuating and progressive condition. Having a disability like MS is hard enough. People should be able to rely on support without fear of having it taken away,” said Laura Wetherly of the MS Society.[25]

Transition from Disability Living Allowance

Adult recipients of Disability Living Allowance will continue to receive it until the Department for Work and Pensions invites them to apply for PIP.[26] DLA continues for children.

Information for support organisations

A toolkit of information for support organisations is available. It contains copies for forms and leaflets, factsheets and guides.

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  • "Personal Independence Payment". GOV.UK. Government of the United Kingdom.
  • "PIP Checker". GOV.UK. Government of the United Kingdom.

References
  1. "Personal Independence Payment (PIP)". Factsheet F60. Disability Rights UK. Retrieved 4 April 2013.
  2. "Personal Independence Payment". Department for Work and Pensions. Retrieved 8 April 2013.
  3. "Disability Welfare Changes Delayed by assessment process". BBC News. 26 October 2013. Retrieved 26 October 2013.
  4. "George Osborne clears path for tax cuts in Budget with £1bn benefits raid".
  5. "Pensions stance creates budgetary mayhem".
  6. Charities' plea over Personal Independence Payments BBC
  7. "Personal Independence Payment (PIP) - eligibility". Retrieved 21 September 2019.
  8. "Personal Independence Payment". Retrieved 20 June 2014.
  9. "Secret PIP files show one in three assessments by Capita had significant flaws". Disability News Service. 11 July 2019. Retrieved 9 September 2019.
  10. "Disability benefits: if at first you don't succeed - appeal". Lexology. 11 December 2019. Retrieved 14 December 2019.
  11. https://www.gov.uk/pip/eligibility
  12. "Last-minute rush to avoid tough new test for disability benefit as Iain Duncan Smith praises reform of 'ridiculous' system". Daily Mail. 8 April 2013. Retrieved 8 April 2013.
  13. "Disability Living Allowance replaced by PIP scheme". BBC News. 8 April 2013. Retrieved 8 April 2013.
  14. "Atos comes under attack in emotional Commons debate". The Guardian. 17 January 2013. Retrieved 8 April 2013.
  15. "Disabled benefit delays a 'fiasco', say MPs". BBC News. 20 June 2014. Retrieved 20 June 2014.
  16. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181539/question-answer.pdf
  17. http://www.motability.co.uk/about-the-scheme/allowances/
  18. "MS: Enough". MS Society. 14 September 2015. Retrieved 14 September 2015.
  19. "Anti-fracking protester claimed disability payments". BBC. 13 June 2019. Retrieved 21 September 2019. Catherine Jackson, 51, pleaded guilty at Blackpool Magistrates Court to dishonestly claiming £5,392 of personal independence payments (PIP). The court she took part in "strenuous demonstrations" in Lancashire after saying she was in constant pain.
  20. https://www.gov.uk/pip/what-youll-get
  21. Personal Independence Payment (PIP): What you'll get. Gov.uk. Retrieved on 19 March 2016.
  22. Thousands have disability vehicles taken away BBC
  23. "January 2018 PIP changes". Mind. January 2018. Retrieved 27 April 2019.
  24. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/180954/pip-briefing-award-durations.pdf
  25. Stop PIP reassessments for patients with progressive diseases, campaigners say The Guardian
  26. Personal Independence Payment (PIP). Gov.uk. Retrieved on 19 March 2016.
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