Ahead of a potential shake-up that could see vouchers replace cash payments, PIP recipients are being offered eight different payment options.
The Department for Work and Pensions (DWP) has set out proposals to overhaul the current system in its ‘Modernising Independent Living Support: Health and Disability Green Paper’. The DWP said: “We need to make sure we have a system that is sustainable and fair for everyone. PIP was designed to contribute to the additional costs faced by people with disabilities and impairments to enable them to live independently.
“Some claimants will have significant additional costs related to their disability and others will have minimal costs. This Green Paper looks at whether there are ways to improve people’s support in a way that is also fairer to the taxpayer than the current system.” .”
Recipients could receive vouchers, grants and access to shopping catalogs instead of cash awards, which can reach up to £737 a month, under proposed reforms aimed at curbing rising spending on personal independence payments (PIP).
About 3.5 million individuals currently benefit from PIP, of which 2.6 million are of working age. The DWP says it is processing 33,000 new PIP claims every month, more than double the number seen before the pandemic.
Birmingham Live is reporting an “unprecedented” increase in demand, primarily driven by a significant increase in claims from individuals struggling with mental health issues, which now make up the majority of claims, according to Chronicle Live.
Here is the latest information on PIP payments. There are two components to consider, each offering a standard and increased rate. People can get one or two of these, giving eight possible PIP combinations. All are detailed below.
Personal Independence Payment (PIP) rates 2024-2025.
A component for everyday life.
Standard: £72.65 per week (up from £68.10).
Mobility component.
Extended: £75.75 per week (from £71.00).
PIP payment combination.
PIP prices are based on a weekly payment rate but are paid every four weeks. So in months that are five weeks long, you may receive one PIP payment in your account at the beginning of the month and another at the end of the same month.
Based on our calculations, here are all the possible payment amounts you could receive.
1. Standard daily life only.
Pay rate: £72.65 per week.
Monthly amount (every four weeks): £290.60.
Annual amount (based on 52 weeks): £3,777.80.
2. Just improved everyday life.
Pay rate: £108.55 per week.
Monthly amount (every four weeks): £434.20.
Annual amount (at 52 weeks): £5,644.60.
3. Standard mobility only.
Pay rate: £28.70 per week.
Monthly amount (every four weeks): £114.80.
Annual amount (based on 52 weeks): £1,492.40.
4. Only increased mobility.
Pay rate: £75.75 per week.
Monthly amount (every four weeks): £303.
Annual amount (based on 52 weeks): £3,939.
5. Standard daily life plus standard mobility.
Pay rate: £101.35 per week.
Monthly amount (every four weeks): £405.40.
Annual amount (at 52 weeks): £5,270.20.
6. Standard everyday life plus increased mobility.
Weekly rate: £148.40.
Monthly amount (every four weeks): £593.60.
Annual amount (based on 52 weeks): £7,716.80.
7. Better everyday life and standard mobility.
Weekly rate: £137.25.
Monthly amount (every four weeks): £549.
Annual amount (for 52 weeks): £7,137.
8. Better everyday life and increased mobility.
Weekly rate: £184.30.
Monthly amount (every four weeks): £737.20.
Annual amount (based on 52 weeks): £9,583.60.
This simply means that at least £290.60 every four weeks a person can now receive, an increase of £18.20 from the previous amount of £272.40. The maximum will be £737.20 every four weeks, an increase of £46.20 from the current £691.
If you want the latest news in your area straight to your inbox every day, go here subscribe to our free newsletter
The DWP reported: “The UK has used a system of fixed cash transfers since the 1970s, but there are a number of international schemes which focus on the specific additional costs that people have and instead provide more tailored support. For example, in New Zealand, People’s Allowance disability is based on additional costs per person that are verified by a Norwegian doctor.Norwegian Basic Allowance requires people to provide a letter from a general practitioner describing the nature of their condition and the associated additional costs.
“We are looking at options including one-off grants to better help people with significant costs such as home improvements or expensive equipment, as well as providing vouchers to help with specific costs or reimbursing applicants who provide receipts for the purchase of aids, appliances or services. This reflects the fact that some claimants will have significant additional costs related to their disability and others will have minimal or specific costs.’
“While these alternative models help people with the excess costs of their disability or health condition, we know that other forms of support including health care, social care provision and respite care are important to help people realize their full potential and live independently.” they also consider whether some people who receive PIP and have lower or no additional costs may have better outcomes from improved access to treatment and support than from a cash payment.”
You can find out more in our Money Savings Newsletter, which is sent daily with all the updates you need to know about PIP payments, universal credit, benefits, pensions, finance, bills and shopping discounts.
Join Teesside Live’s WhatsApp community and get the best stories and breaking news delivered straight to your phone
Teesside Live is now on WhatsApp and we want you to join our community.
We’ll send you the latest news, top stories, exclusives and more straight to your phone through the app.
You must already have WhatsApp to join our community group. All you have to do is click on this link and select ‘Join Community’.
No one can see who is logged in and no one but the Teesside Live team can send messages.
We also provide members of our community with special offers, promotions and advertisements from us and our partners. If you don’t like our community, you can always check out.
To leave our community, click on the name at the top of the screen and select ‘Leave Group’.
If you are interested, you can read our Privacy Notice.
Click here to join our WhatsApp community.