DWP bringing in six PIP changes as 2025 shake-up planned - Birmingham Live

DWP bringing in six PIP changes as 2025 shake-up plannedThe government is planning 'fundamental' reforms to the system for health and disability benefitsNewsDavid Bentley Content Writer

(Money and Events)07:30, 28 Dec 2024Updated 10:06, 28 Dec 2024The DWP is planning a number of changes in 2025 for people on disability benefits (Image: scu) A series of changes will take

effect in 2025 for millions of people claiming Personal Independence Payment (PIP). According to the latest DWP figures from October 2024, 3.66 million people across Britain are in receipt

of PIP to help with the extra costs of a long-term physical or mental health condition or disability.

Another 1.3 million are on its predecessor, Disability Living Allowance, which now only allows new claims for children under 16. In Scotland, PIP and DLA are being gradually replaced by two

devolved benefits, Adult Disability Payment and Child Disability Payment.

‌ Birmingham is the local authority area with the highest number of PIP claimants, with 88,000 people currently receiving payments of up to £737 every four weeks. We also have the largest

number of DLA recipients, currently around 26,000.

‌ READ MORE:

DWP explains Universal Credit and PIP claimants' rights over bank account checksThousands face Universal Credit changes in New Year as DWP confirms 'next steps' Statistics show that around

230,000 people put in a first claim for PIP in the quarter from the start of August to the end of October, indicating that almost 80,000 applications for the benefit are made every month.

Below, we have listed the upcoming changes to PIP for 2025, when a huge shake-up is set to be announced to trim spending and improve the way the system works to cut down on backlogs and

appeals.

Article continues below1. New Year payments moved Following the adjustments made during Christmas week, PIP claimants will also see changes to payment dates because of the New Year bank

holidays. It's important to point out first that anyone whose payment is due on Tuesday, December 31, will get it in their accounts as normal because New Year's Eve is not a bank holiday.

However, those whose PIP (or any other benefit) is due on Wednesday, January 1, will see it go in a day earlier, on December 31. This will affect those whose PIP was previously paid into

their account four weeks earlier on December 4.

Payments will then go back to normal on Thursday, January 2, except in Scotland where the extended New Year celebrations will mean most benefits expected to land that day will also be

brought forward to December 31. This includes PIP claimants who were previously paid on December 5.

‌ Benefit recipients in Scotland will only see their Universal Credit still going in as usual on January 2. All bank credits for DWP and HMRC benefits will then return to their normal cycle

from Friday, January 3.

2. Motability £750 payment scrapped Friday, January 3, will see a £750 payment come to an end for thousands of people looking for additional mobility support so they can get around more

easily. Motability is scrapping the New Vehicle Payment for anyone who has not ordered their car by this date.

The payment was introduced to help with the increased costs of new cars due to global shortages so that disability claimants could put the cash towards the upfront charges for their leased

vehicle. The £100 New Product Payment for scooters and powered wheelchairs is also being axed.

‌ Motability vehicles are available to those on the higher-rate mobility payments of PIP, DLA, ADP and CDP in exchange for some or all of these disability components. Those on the veterans'

benefits Armed Forces Independence Payment and War Pensioners' Mobility Supplement can also qualify. They'll now have to use their benefits or other income to pay any advance costs required

by Motability.

3. Major reform of disability benefits Following the publication of its Get Britain Working white paper, the Labour Government says it plans to announce measures to "overhaul the health and

disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill." The DWP says a consultation will be published in spring 2025

and has assured claimants that it will "put the views and voices of disabled people at the heart of any policy changes that directly affect them."

Under the Conservative government, the DWP published a green paper in April that set out measures to tackle soaring claims for Personal Independence Payment (PIP). The document suggested

several changes, including replacing cash payments with vouchers, grants, or shopping catalogues.

‌ Work and Pensions Secretary Liz Kendall recently said: "I will be putting forward our own proposals to reform sickness and disability benefits. This is extremely difficult and I know

people really want more detail, but we won't do that until we're absolutely ready and have had the proper discussions with people."

When pressed on whether she would scrap the controversial option of replacing PIP payments of up to £737 a month with vouchers, Ms Kendall said: "I was very struck particularly by the

comments people made around shifting support to vouchers and where many organisations said their real concern was that it took away people's autonomy and particularly when services are so

stretched and tight."

DWP spending on PIP is expected to grow by 63 per cent in the next five years from £21.6 billion in 2023/2024 to £35.3 billion in 2028/2029. Each month there are 33,000 more people starting

to receive the benefit, double the rate before the pandemic.

‌4. Increased payment rates from April Benefit payment rates are to rise by 1.7 per cent from April 2025, in line with the September inflation figure. This will increase all the different

payment elements of most DWP benefits, including PIP and DLA.

For those on PIP, the daily living component will rise from £72.65 to £73.90 at the standard rate and from £108.55 to £110.40 at the enhanced rate. The mobility component will go up from

£28.70 to £29.20 at the standard rate and from £75.75 to £77.05 at the enhanced rate.

Claimants may receive either or both of these components, which are typically paid every four weeks. Therefore, the maximum award of £737.20 for the combined total of both enhanced rates

will increase to £749.80.

‌5. PIP claimants' spending looked at A DWP minister has confirmed that a study will be carried out to gather information on what people need their PIP payments to help cover, with its

findings to be announced next summer. It follows MPs' questions about the adequacy of Personal Independence Payment in supporting the extra costs of disability.

Sir Stephen Timms, DWP Minister for Social Security and Disability, said: "Personal Independence Payment (PIP) provides a contribution to the extra costs that may arise from a disability or

health condition. There is no objective way of deciding what an adequate level of PIP should be, as everyone has different requirements reflecting their own circumstances and priorities.

"DWP pays close attention to estimates of the extra costs faced by disabled people, including academic research, analysis by Scope, and DWP's own commissioned research on the Uses of Health

and Disability Benefits from 2019.

‌ "In order to improve the evidence in this area, DWP is now undertaking a new survey of Personal Independence Payment customers to understand more about their disability-related needs. This

project has a methodological advisory group including representatives of disabled people's organisations, disability charities and academic experts. It is expected to produce findings in

Summer 2025."

Representatives of Scope are among those on the panel. The disability equality charity has said that current PIP payments in the UK are not enough to cover costs. David Southgate, policy

manager for Scope, said: "Life costs more if you are disabled. Scope research shows that these costs add up to on average £1,010 a month for disabled people to have the same standard of

living. The low amount that PIP provides doesn't go far enough as it is."

6. Funding to help claimants back into work A £3.5 million funding boost will be shared among 17 NHS areas - including Birmingham and Solihull - to look at new ways of treating

musculoskeletal conditions that are keeping people out of work. There are 2.8 million people who are economically inactive due to long-term illnesses, with muscle and joint pains the second

largest reason given after mental health. For around 646,000 people, musculoskeletal disorders are listed as their primary condition and many receive Universal Credit incapacity payments for

long-term sickness.

‌ Although PIP was not mentioned in the announcement and can be awarded regardless of whether a person works, more than 1.1 million claimants do get the benefit for this type of disability

if it affects their everyday activities and mobility. DWP data for PIP shows the musculoskeletal issues listed on claim forms include various forms of arthritis, along with bad backs,

amputation, and shoulder, neck, hip, and knee problems. Many of these claimants will also be receiving Universal Credit's sickness payment if they are also deemed to be unfit for work.

Minister for Employment Alison McGovern said: "For too long, people locked out of work with health issues have been forgotten about and denied the support they need to get well and get

working. It's stifling our economy and preventing those eager to progress in life from unleashing their full potential.

"This multi-million-pound funding boost means musculoskeletal patients across the country will get the help they need, as we give clinical leaders the resources to innovate, get people off

waiting lists and get Britain working again."

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