PIP cost reduction options outlined

Prime Minister Andy Burnham has been presented with three potential avenues to bring down the cost of Personal Independence Payment (PIP), the UK's main disability benefit. Economist Paul Johnson, from the Institute for Fiscal Studies, outlined the options available to the Labour government in comments reported by the i paper this week.

Mr Burnham and Chancellor John Healey are grappling with the rapidly expanding welfare bill as they await the findings of the Timms Review into PIP, being conducted by cabinet member Sir Stephen Timms. Earlier this year, Mr Timms declared that PIP was "not fit for purpose" and required wholesale reform, though he noted the "current level of spending is not a great concern". However, "what would be a concern would be if it carried on going up forever more", he warned.

Speaking to the i paper, Mr Johnson urged the Government to actively pursue a reduction in expenditure. "I would hope that we end up with the Timms Review and policy following it, which does actually explicitly look to reduce the spending," he stated. He then set out three possibilities: "There are different ways of getting it down. We could just be tighter with the criteria. We could treat mental health issues differently to how we do at the moment. We could just provide a lot more support to get people into work." He added: "But I don't think it is sort of sensible for us to be spending that much more in a completely unplanned way, and then just saying, 'Well, that's fine, we'll carry on as before'."

The suggestions come amid rising costs of PIP, which is currently worth up to £194 a week. According to reports, total claims for mental health-related conditions have more than doubled over the last six years, rising from around 700,000 in 2019 to around 1.5 million now, contributing to a ballooning disability benefits bill. The interim Timms report suggested conditions like anxiety or depression may no longer qualify, or that it would become harder for people with these complaints to meet the threshold.

Reaction from claimants

Mr Johnson's remarks prompted a significant backlash from PIP claimants on social media platform X. One commented: "Another mediocre know-it-all using the most vulnerable in our society to make a name for himself. Hounding people who have so little is what makes a broken Britain." Another added: "What a surprise, a multi-millionaire former company director says that others should bear the brunt!"

The government has not yet responded to Mr Johnson's proposals. The Timms Review, tasked with proposing a future for PIP that gets the benefit bill down, is expected to make recommendations in the coming months.