Personal Independence Payment (PIP) claimants suffering from arthritis may face a reduction in their financial support by up to £750 under proposed reforms being considered by a Labour government. The Institute for Fiscal Studies (IFS) has released data shedding light on how the recommendations emerging from the Timms Review might be implemented.
The IFS explains, “One method involves directly estimating the additional costs faced by disabled individuals through surveys that ask about goods and services required to perform specific activities targeted by the government.”
This approach entails comparing responses from people with disabilities to those without, attributing differences to disability-related expenses. For instance, in the case of maintaining a clean home, an individual with arthritis might report needing to hire a cleaner, and the associated costs would be counted as part of their additional expenses.
However, the IFS notes the necessity of averaging costs across various disabilities and individuals to reach an overall estimate. The Timms Review is currently conducting a survey to gather data on these additional costs.
There are challenges with this approach. Respondents might not accurately know all the items they would require to carry out certain activities, particularly if those activities are currently avoided. Moreover, there’s ambiguity about the extent to which goods or services are necessary; for example, a person might perform an activity unaided but only with significant discomfort or exertion.
A Department for Work and Pensions spokesperson said, “The Timms Review interim report highlighted that PIP is no longer fit for purpose. The final report, expected this autumn, will guide sustainable reforms.”
The spokesperson added, “These reforms will build on ongoing efforts to improve the welfare system, including increasing face-to-face assessments and extending award review periods. These measures are projected to deliver approximately £2 billion in savings while reducing unnecessary stress on disabled individuals.”