A group has outlined which Personal Independence Payments (PIPs) recipients are most likely to retain their benefits amid a significant change proposed by the government. Work and Secretary Liz Kendall has announced a major overhaul to the PIP system that could potentially cut the budget by £5 billion.
However, MPs and charities have voiced concerns that many disabled individuals who rely on these funds for daily life could unjustly lose crucial support. The Green Paper is seen as the Government's earnest effort to address two primary issues: the escalating cost of disability benefits and the high number of people unable to work due to ill health.
The cuts unveiled last month are projected to save over £5 billion annually by 2030. However, experts estimate that around a million people in England and Wales will lose their disability benefits as part of this revamp. Welfare reductions aiming to save roughly £5 billion in 2029/30 were disclosed.
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The Resolution Foundation, an independent British think tank established in 2005, aims to enhance the living standards of low- to middle-income families. Personal Independence Payment (PIP) is a benefit designed for individuals below State Pension age who require assistance with daily activities or mobility due to long-term illness or disability.
The Resolution Foundation has issued a stark warning that alterations to the Personal Independence Payment (PIP) will impact the living standards of hundreds of thousands of disabled individuals. The foundation highlighted that if this single change saves £5 billion, 'then it means between 800,000 and 1.2 million people losing support of either £4,200 (if receiving the standard rate Daily Living element) or £6,300 (if on the enhanced rate Daily Living element) a year by 2029-30'.
Those most likely to bear the brunt of these changes are: "Those losing out will be the people who would currently qualify for the Daily Living element of PIP, but score under four points in each of the 10 headings. For example, this will include people who have lower-level needs across a range of activities (like needing aids or appliances to cook, take nutrition, wash and bathe, and dress and undress) but who are not deemed to be completely unable to complete any of these activities. Meanwhile, people who experience large difficulties across one or more of the PIP activities will be unaffected."
The Foundation has shed light on who's likely to retain their benefits under new criteria, highlighting three specific conditions: "The has not released any evidence on the impact of these changes, but what we can say (based on previously-released data) is that people with conditions including learning difficulties, cerebral palsy and autism are least likely to be affected, since people receiving PIP and with these conditions are most likely to score 21 points or more in the Daily Living part of the PIP assessment, meaning they are very unlikely to have passed the assessment without scoring four or more points in one of the headings."