Felis Catus
Senior Member (Voting Rights)
I've been meaning to post about the report from the Institute for Fiscal Studies - "Options for reforming personal independence payment" - funded by the Nuffield Foundation, but I've been too unwell to do it justice. So I haven't read it but I've read the press release titled "People with very different severities of disability currently get the same amount of PIP". Some quotes (their bold):
For example, someone who cannot wash themselves and needs assistance dressing their upper body would currently get the same level of support for daily living – £5,960 a year – as someone who cannot wash themselves, cannot dress themselves at all, cannot talk and cannot read.
The government could more closely link PIP awards to the level of assessed disability, thereby targeting support towards those with the most severe conditions.
Findings from the options we consider include:
- Means-testing PIP, by making it part of universal credit, would deliver an initial saving of up to £8.2 billion (33% of PIP spending) before any changes in the behaviour of applicants in response. This would more closely target resources towards those with the lowest living standards – 62% of PIP claimants on below-average incomes report not being able to afford essentials, compared with 34% of PIP claimants on above-average income. However, there are also gaps in living standards between disabled and non-disabled people higher up the income distribution. Means-testing PIP would make it less effective at closing these gaps.
- 45% of PIP claimants have a mental, learning or neurodevelopmental issue as their ‘main’ condition. A commonly discussed option is to reduce or remove eligibility for this group. One argument is that it is harder to verify the effects of mental rather than physical health conditions – although this is not true for all conditions. Savings would be lower than often expected because most claimants with mental health conditions also have a physical health diagnosis.
- The government may want to restrict access to PIP for younger claimants if, for example, it thinks they might be better helped by more employment support and training opportunities. Stopping all under-30s claiming PIP would save £5.5 billion a year, but many of those affected have severe disabilities. There are 689,000 PIP claimants under 30 (20% of working-age caseload), approximately half of whom qualify for the highest possible award, compared with only 34% of claimants over 30. Allowing young people with the highest possible awards, and so the most severe conditions, to keep PIP would reduce the saving to at most £2.2 billion a year.
It's hard to see any winners among the claimants. I very much doubt that those most severely affected will get more than they're already getting. Nevertheless, regardless of the outcome, I'm sure they'll be used in speeches and interviews as a bright example of disability being recognised, acknowledged and the costs of it adequately compensated.Eduin Latimer, Senior Research Economist at the Institute for Fiscal Studies, said:
‘Before making reforms to PIP, the government needs to decide what PIP is for. If it is to help disabled people in the greatest need, there is a case for targeting support on those with the most severe disabilities or on the lowest incomes. If it is to reduce inequalities between disabled and non-disabled people more broadly, there is a case for spreading support more widely. Given that the Timms Review has ruled out spending more than currently forecast, any reforms inevitably mean there will be losers as well as winners.’