The Department for Work and Pensions (DWP) is facing calls to stop all Personal Independence Payment (PIP) payments for low-level mental health conditions as the benefit’s cost is forecast to almost double by 2030.
According to recent projections from the Office for Budget Responsibility (OBR), PIP expenditure is expected to increase from approximately £26 billion in 2024 to around £45 billion by the end of the decade. This surge contributes to the overall welfare spending in Britain, which is approaching £400 billion.
Figures from the DWP indicate that by April this year, four million people in England and Wales were entitled to PIP, with about 3.3 million of those being of working age.
Shadow Work and Pensions Secretary Helen Whately criticised the Labour government, stating: “Britain is hurtling towards a £400 billion welfare bill with Labour asleep at the wheel. The Government has no plans to reverse the rise in welfare and worklessness. Too many people are being parked on sickness benefits, leaving taxpayers to pick up the ever-growing tab.”
She further emphasised that Labour MPs aim to increase taxes to fund higher benefits, while the Conservative Party is conducting a thorough review of the sickness benefits system. This includes plans to cease claims for low-level mental health conditions, reinstate face-to-face assessments, and encourage more people into employment.
A DWP spokesperson referenced the interim Timms review report, noting that PIP “is no longer fit for purpose.” The final recommendations, expected in the autumn, aim to deliver sustainable reforms.
They added that current measures, such as increasing face-to-face assessments and extending award review periods, are intended to save around £2 billion while reducing unnecessary pressures on disabled individuals.