A major review of the basic disability benefit in England and Wales is considering whether claimants can be offered alternative support instead of cash payments in some cases.
Sir Stephen Timms, the minister carrying out the review, told MPs the Government would not be “moving away” from providing cash for disabled people to help them with extra living costs.
But the minister said the review was looking at whether some Personal Independence Payment (Pip) claimants could be referred to other types of support instead.
Alternatives to cash payments may include NHS treatment, specialist equipment or employment support.
In initial findings released this weekexternalSir Stephen’s review found that Pip is not helping millions of disabled people and needs fundamental changes.
The interim report, while saying Pip was “not fit for purpose”, said people who applied for benefits described the process as “inhumane” and a barrier to work.
In the years since the Covid pandemic, Pip’s claims, particularly for conditions such as anxiety and ADHD, have risen sharply, putting increasing pressure on public finances.
Around 10 million working-age people (24%) report living with a disability, up from less than 17% in 2013/14.
Pip’s value is expected to rise to more than £41 billion by 2030, up from £15 billion in 2020.
The review suggests a radical overhaul of the PIP assessment system is needed.
A Department for Work and Pensions spokesman said the review’s final recommendations were due this autumn and would “lay the foundation for deep and lasting reform”.
On Thursday, review co-chair Sharon Brennan told the BBC she and Sir Stephen were considering how they could change Pip’s assessment process.
“It’s a very rough process at this point,” Brennan said. “It’s a yes or no answer whether you get paid or not, and we don’t really have conversations with people about what additional support they need to live the life they want to live.”
She said the review would question whether the different levels of cash support available to Pip claimants “truly reflect the real impact of disability” in 2026, stressing that increasing “labor force participation” would be an important part of any reforms.
Speaking in the House of Commons on Thursday, Sir Stephen said the review “clearly provides money to cover additional disability costs is vital”.
He added: “We won’t shy away from the importance of this, but I think there is a question about whether this process can also direct people to help that they might value, in addition to, and in some cases perhaps instead of, a cash payment.
“People need help and support, and I think this process can help point people to that.”
He said the system “can put people in the right place in healthcare”, adding that the review “looks at all of these issues and we will come back with recommendations in our final report”.
The interim report said the needs of disabled people and their additional costs “varied significantly and the current system does not always recognize these differences or offer appropriate support”.