A ground-breaking review of Personal Independence Payments (PIP) in England and Wales has sparked calls for revolutionary change, with the minister leading the inquiry stating that alternative forms of support are being considered. Sir Stephen Timms confirmed that while direct cash payments remain essential, the review is exploring innovative ways to assist claimants, including NHS treatments, specialist equipment, or employment support programmes.
Initial findings from the review have painted a damning picture, concluding that PIP is failing millions of disabled people and requires fundamental reform. The interim report described the benefit as "not fit for purpose", highlighting how applicants often find the process "dehumanising" and a barrier to seeking employment. Since the Covid-19 pandemic, the number of PIP claims, particularly for conditions such as anxiety and ADHD, has surged, putting immense pressure on public finances.
Approximately 10 million working-age individuals in the UK – a staggering 24% of that demographic – live with a disability, up from under 17% in 2013/14. The financial implications are substantial, with PIP's cost set to rise from £15 billion in 2020 to an estimated £41 billion by 2030. The review suggests a radical overhaul of the current assessment system is necessary to address these challenges.
Sharon Brennan, co-chair of the review, stressed the need to move beyond the "blunt process" of determining eligibility for cash, instead engaging with individuals to understand their specific support needs and encouraging participation in the workforce. She questioned whether existing levels of cash support accurately reflect the real-life impact of disability in 2026.
The Department for Work and Pensions (DWP) has confirmed that the review's final recommendations, due this autumn, will form the foundation for deep and sustainable reform. The current system assesses eligibility through a health professional's evaluation of an individual's ability to perform daily tasks, scoring them on a zero to 12 scale. As of April, around four million people were entitled to PIP in England and Wales.
This review was initiated by Prime Minister Sir Keir Starmer following the government's previous attempt to reform welfare. Concerns from Labour MPs about plans to cut disability and sickness-related benefit payments led to a U-turn, ensuring no changes to PIP rules at that time.