Individuals receiving Personal Independence Payment (PIP) may see reductions in their benefits as the government faces "difficult decisions" on welfare spending later this year. PIP, designed to help with the additional costs associated with a disability or long-term health condition, provides up to £737 every four weeks.
However, due to "unprecedented" demand, the affordability of these payments is being questioned. The UK government currently allocates £69 billion to benefits for working-age individuals with disabilities or health conditions, which exceeds the budgets for schools, transport, or policing. Projections indicate that spending on PIP alone could surge by over 50% in the next four years.
With potential welfare reforms on the horizon that might limit payments to disabled individuals, Citizens Advice highlights that those who qualify for PIP could be eligible for further financial assistance from various sources. PIP is not means-tested, allowing recipients to supplement their income through employment if they are capable of some work.
Universal Credit, a benefit for low-income individuals, is one of the primary options for additional support. It includes a disability provision known as LCWRA (limited capability for work and work-related activity) for those medically unfit to work, reports Birmingham Live.
This extra payment can be awarded after GP sick notes have been submitted and a work capability assessment has been conducted. If the claimant is then deemed unfit to return to work, they receive this on top of the standard Universal Credit allowance.
From April, the standard Universal Credit allowance will be £311.68 for single individuals under 25, and £393.45 for those aged 25 or over. With the addition of the LCWRA payment of £416.19, this totals £727.87 or £809.64 respectively.
In the future, the LCWRA category is expected to be replaced by a Universal Credit Health Element, accessible only to those who already receive PIP. Therefore, a successful PIP application could become essential if these plans remain under Labour.
Employment and Support Allowance (ESA) is another potential benefit. While income-related ESA is no longer open to new claims as it's a legacy benefit being phased out and replaced by Universal Credit, New Style ESA could be an option for those who have paid National Insurance in the past two to three years.
New Style ESA can be claimed even if your partner is employed or if you and your partner have savings over £16,000. This is because, unlike means-tested benefits such as Universal Credit, it doesn't have any capital limits.
Therefore, this could be an option if you're ineligible for Universal Credit due to the amount of savings. New Style ESA is a regular payment made every two weeks and also provides Class 1 National Insurance credits, which can contribute towards your State Pension and other contributory benefits in the future.
However, be aware that if New Style ESA is claimed alongside Universal Credit, it's considered as income and is deducted from your payment, leaving you no better off overall. New Style ESA is paid at a rate of £90.50 a week if you are in the work-related activity group (where you are expected to prepare for finding a job) and £138.20 a week if you are in the support group (which has no work requirements).
If you are on PIP and also receive Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), or Housing Benefit, you may qualify for a top-up known as a disability premium. Working Tax Credit also includes a disability element.
However, all these are being phased out by Universal Credit, meaning no new applications are being accepted and only existing claimants can get the premiums added. If you're currently receiving one of these benefits with a disability premium and have to transition to Universal Credit under the DWP's managed migration, your total amount will initially be maintained at the same level through what's known as transitional protection.
If you're eligible for the mobility component of PIP, you might qualify for a Blue Badge and a vehicle tax discount or exemption. You may also be able to access a Motability Scheme vehicle if you receive the enhanced rate of the mobility component.
Moreover, individuals receiving either the daily living or mobility part of PIP can obtain a Disabled Persons Railcard and may be eligible for a discount on their council tax and local bus travel. Council Tax Support criteria differ across each local authority, so it's advisable to check.
If someone assists in caring for you, they could potentially receive Carer's Allowance or Carer's Credit. You could also receive Carer's Allowance on top of your own PIP if you provide care for another individual.
However, some other benefit claims can result in a reduction of your PIP. For instance, if you receive Constant Attendance Allowance, you'll get less of the daily living part of PIP, and if you receive War Pensioners' Mobility Supplement, you won't get the mobility part of PIP.
