Is PIP being stopped? What is the Personal Independence Payment, as the government prepares to reveal benefits reforms

Work and Pensions Secretary Liz Kendall will make an announcement today. The government says it is important to take action as the number of people in England and Wales on either sickness or disability benefits has gone up from 2.8m to 4m since 2019.

In total the cost of benefits was £48bn in 2023/4 and is projected to hit £67m in 2029/30.

The changes announced today are rumoured to be thought to save £6bn a year, and proponents have been fierce in insisting that the current set-up leaves too many people depending on benefits, rather than using them as a safety net or springboard from which to find paid work.

However, coming from the Labour Party, which has historically been seen as maximising state support for those in need, it has caused some upset. Cabinet ministers including Deputy Prime Minister Angela Rayner and Energy Secretary Ed Miliband are said to have voiced concerns in private, with many backbench MPs worried that this is a throwback to the language of the Tories’ austerity about “benefit scroungers” and “strivers and skivers”.

Ms Kendall is set to abolish the “work capability assessment” for universal credit, which is used to determine eligibility for incapacity benefit payments for those with illnesses or disability who have limited ability to find a job.

She is also expected to cut the top rate of universal credit incapacity benefit, which The Times said would be partially offset by an increase to the basic rate and £1bn pumped into support schemes to help claimants get into work.

The most controversial element of the package could be changes to the personal independence payment (PIP) – a benefit aimed at helping the disabled with the increased cost of living associated with their conditions.

PIP is not means-tested and is available to people even if they are working. The Government appears to have shifted away from rumoured plans to freeze PIP, meaning a real-terms cut by not increasing the payments in line with inflation, but reports have indicated they will be harder to qualify for in future. That could include more frequent reassessments for both PIP and incapacity benefits to determine whether the payments are maintained.

What is PIP?

The Personal Independence Payment (PIP) is designed to help people who face extra living costs because they live with long-term physical or mental health conditions which make it harder for them to do everyday tasks or get around.

People can get PIP even if they are in work, have savings or are getting other benefits. To be eligible people must be 16 years old or over and their difficulties must be expected to last for at least a year from when they started. People who live in Scotland apply to a different system.

How much money is paid out on PIP?

The maximum amount that one person can get from PIP is £184.30 a week, if they assessed as needing the higher rate for both the “mobility” and the “daily living” part. Over a year that adds up to £9,583.60, and per month it is £798.63.

There is a lower rate on both parts which in total is £101.35 - but not everyone who is eligible for PIP qualifies for both parts.

For daily living the lower rate is £72.65 per week and the higher rate is £108.55 per week. For mobility the lower rate is £28.70 per week and the higher rate is £75.75 per week.

People on PIP are assessed by the Department for Work and Pensions. Citizens Advice says: “If the DWP decision maker decides that your ability to carry out the component is limited, you will get the standard rate. If it’s severely limited, you will get the enhanced rate.”

People must be 16 years old or over and their difficulties must be expected to last for at least a year from when they started. PIP runs in England and Wales, not in Scotland.