DWP PIP could be cut for millions as 'means testing an option'

DWP PIP could be cut for millions as 'means testing an option' New research from the Institute for Fiscal Studies sets out a series of controversial options for reforming Personal Independence Payment (PIP) Millions could see disability benefits changed under a series of controversial options - including means-testing PIP and targeting payments at those with severe conditions. New research from the Institute for Fiscal Studies sets out how ministers could change the Personal Independence Payment, along with the potential savings and groups that could gain or lose. The analysis comes as the Government faces mounting pressure to control the rapidly rising welfare bill and awaits the findings of the Timms Review, which is examining the future of PIP. The IFS is not advocating any specific proposal, but rather it is laying out options to inform the review and the forthcoming Budget. One of the most dramatic options examined is means-testing PIP by making it part of Universal Credit. The IFS estimates this could initially save up to £8.2billion a year - equivalent to 33% of PIP spending - before taking account of changes in claimant behaviour. But this is presented as an illustration of what the reform could achieve, rather than a recommendation from the IFS. Means-testing would target more support towards disabled people on the lowest incomes. The research found that 62% of PIP claimants on below-average incomes said they could not afford essentials, compared with 34% of PIP claimants on above-average incomes. However, the IFS also points out that disabled people further up the income distribution continue to have lower living standards than non-disabled people. Means-testing PIP could therefore make the benefit less effective at tackling those wider inequalities. Eduin Latimer, senior research economist at the IFS, said: "Before making reforms to PIP, the government needs to decide what PIP is for. "If it is to help disabled people in the greatest need, there is a case for targeting support on those with the most severe disabilities or on the lowest incomes. If it is to reduce inequalities between disabled and non-disabled people more broadly, there is a case for spreading support more widely." He added: "Given that the Timms Review has ruled out spending more than currently forecast, any reforms inevitably mean there will be losers as well as winners." PIP could be linked more closely to severity Another option examined by the IFS is changing the way PIP awards relate to the severity of a person's disability. Under the current points-based system, anyone scoring at least 12 points on a component receives the same enhanced rate, even if their assessed level of disability is considerably higher. The IFS gives a striking example Someone who cannot wash themselves and needs help dressing their upper body can currently receive the same £5,960 a year daily living award as someone who cannot wash or dress themselves, cannot talk and cannot read. The research examines what could happen if awards were more closely linked to the number of points scored. This would not necessarily save money overall. The IFS says the Government could use such a system while keeping total spending unchanged, potentially directing more money towards people with the highest assessed levels of disability. The impact would vary between groups Younger claimants and those with learning disabilities or cerebral palsy tend to have higher assessed levels of disability and could receive more under such a system. Older claimants with conditions such as arthritis or back pain could be more likely to see their awards reduced. The IFS stresses that any such approach would depend on confidence that the assessment process accurately captures the severity of people's disabilities. £5.5billion option for under-30s The research also examines what would happen if ministers restricted PIP for younger claimants. There are currently 689,000 PIP claimants aged under 30, accounting for around 20% of the working-age caseload. The IFS calculates that stopping all under-30s claiming PIP would save £5.5billion a year. But again, this is presented as an example of a possible policy change - not as an IFS recommendation. The researchers point out that many young claimants have severe disabilities. Around half of under-30 PIP claimants qualify for the highest possible award, compared with 34% of claimants aged over 30. Allowing young people with the highest possible awards to retain PIP would reduce the maximum saving to £2.2billion a year. Mental health rules also examined The IFS also considers the possible consequences of reducing or removing PIP eligibility for people whose main condition is a mental health, learning or neurodevelopmental problem. They account for 45% of PIP claimants. But the researchers warn that savings could be lower than expected because most claimants with mental health conditions also have a physical health diagnosis. The IFS says one argument sometimes made for restricting this group is that the effects of mental rather than physical health conditions can be harder to verify, although it stresses this is not true of all conditions. PIP bill has soared The Government asked the Timms Review to examine PIP amid a sharp rise in both claimant numbers and spending. The share of 16 to 64-year-olds claiming PIP has risen from 5.5% in 2019 to 8.2% in 2025. Spending has increased from £14billion in 2019-20 to £25billion in 2025-26, while official forecasts suggest it could reach £34billion by 2030-31. The Timms Review is examining options for changing the system, with recommendations expected this autumn. The IFS says its research is designed to inform that process rather than dictate the outcome. Mark Franks, director of welfare at the Nuffield Foundation, said: "The government faces meaningful choices and trade-offs in reforming PIP, and there are likely to be significant impacts on the lives of some people currently receiving the benefit." He added that there was scope to better target support towards those with the greatest needs, while stressing the importance of tackling barriers faced by disabled people seeking to enter and remain in work. A DWP spokesperson said: "The Timms Review interim report made clear that PIP is no longer fit for purpose. The recommendations from the final report, due in Autumn, will pave the way for sustainable reform. “This comes on top of action we are already taking action to fix the broken welfare system, including by increasing face-to-face assessments and extending award review periods to deliver savings of around £2bn while removing unnecessary pressure on disabled people.”