New DWP update on plans to replace monthly PIP cash payments with vouchers
During the first Work and Pensions Committee meeting under the new Labour Government, Liberal Democrat MP Steve Darling asked the Secretary of State if she would rule out replacing cash Personal Independence Payments (PIP) with vouchers, as proposed by the Conservatives in a consultation paper earlier this year. Liz Kendall‘s response gave the strongest indication yet that taking the choice away from people on disability benefits on how they spend their money was not in their plans for welfare reform.
The Department for Work and Pensions (DWP) boss explained that the previous government “didn’t have a plan, they had a consultation” which received over 1,600 responses. Ms Kendall said she was "very struck, particularly by the comments people made around shifting support to vouchers, where many organisations said their real concern was that it took away people’s autonomy - particularly when services are so stretched and tight”.
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Ms Kendall also said she had read those comments “very, very carefully” and confirmed that the Labour Government will be putting forward its own proposals to “reform sickness and disability benefits ” but it will be based on clear principles of “getting the decision right first time, early intervention, genuine support to help people into work, helping people live full, fulfilling and independent lives”.
However, she added that it 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”.
Last month, the Minister for Social Security and Disabilities, Sir Stephen Timms MP confirmed that the DWP does “not intend to publish a response to the previous government’s consultation”, effectively kicking the prospect of swapping PIP cash for vouchers or grants into the long grass.
Sir Stephen gave the written response to Lib Dems Chief Whip Wendy Chamberlain, who asked if the DWP planned to respond to the consultation, published by the then Conservative government.
In another written statement, the DWP Minister also confirmed that the Department is “exploring potential changes to modernise the PIP service to improve claimants’ experience and trust in our services and decisions”.
Proposed alternatives to PIP cash payments
The previous Conservative government's Green Paper proposed that if DWP were to consider other ways of supporting people with disabilities and long-term health conditions - apart from providing regular cash payments - it could continue to contribute to people’s extra costs through alternative models.
These included:
Catalogue/ shop scheme: in this kind of scheme, there would be an approved list from which disabled people could choose items at reduced or no cost. This would likely work better for equipment and aids rather than for services.
Voucher scheme: in this kind of scheme, disabled people could receive vouchers to contribute towards specific costs. It could work for both equipment/aids and for services.
A receipt-based system: this would involve claimants buying aids, appliances, or services themselves, and then providing proof of their purchase to claim back a contribution towards the cost. This could work in a similar way to Access to Work, which provides grants for equipment, adaptations, and other costs to help disabled people to start and stay in work.
One-off grants: these could contribute towards specific, significant costs such as for home adaptations or expensive equipment. It could involve a person supplying medical evidence of their condition to demonstrate the need for equipment or adaptations.
