Personal Independence Payment (PIP) claimants suffering from back pain could see their benefits reduced by up to £850 following reforms proposed by the Labour Party government. This is based on new modelling published by the Institute for Fiscal Studies (IFS) which analyses recommendations from the Department for Work and Pensions (DWP) Timms Review.
The IFS explained that one approach to estimating the additional financial costs of disability involves comparing the living standards of people with disabilities to those without. Ideally, this comparison focuses on specific activities necessary for participation in everyday life, as outlined in the IFS study.
In the absence of such detailed measures, material deprivation is commonly used. This metric evaluates whether households can afford essential items such as fresh fruit, vegetables, and adequate home heating. The IFS defined “materially deprived” as anyone unable to afford five or more of these essentials.
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The report emphasised the context of PIP’s introduction over 13 years ago, noting significant shifts in the prevalence and nature of reported disabilities, as well as changes in the economy and the wider benefits system. These trends are reflected in the evolving and expanding caseload of PIP claimants.
Given the growth in both expenditure and claimant numbers, the IFS stressed the importance of ensuring that the system is well-designed. It regarded this period as an opportune moment to review the scheme and to consider necessary reforms.
A Department for Work and Pensions spokesman commented on the review, stating: “The Timms review interim report has demonstrated that PIP is no longer fit for purpose. The recommendations from the final report, expected this autumn, will guide sustainable reform.”
He added, “This work complements our ongoing efforts to improve the welfare system, including increasing face-to-face assessments and extending award review periods. These measures aim to deliver savings of around £2 billion, while reducing unnecessary pressure on disabled individuals.”