A Department for Work and Pensions (DWP) impact assessment on the introduction of personal independence payment (PIP) suggests that half a million fewer people will be in receipt of PIP by 2016 than would have been in receipt of DLA. The report also claims that the '​reform'​ of disability living allowance (DLA) will cost £​710m to implement and that expenditure will be reduced by £​2.24bn by 2015/16.

The stated policy objectives and intended effects are explained as being to create a more “​enabling benefit”​ ensuring that support is given to those facing the greatest barriers and that expenditure is sustainable.

The forecast caseload for DLA for 2015/16 (age 16-64) rate combination is:

higher mobility, higher care 350,000;
higher mobility, middle care 290,000;
higher mobility, lowest care 270,000;
higher mobility, no care 130,000;
lower mobility, higher care 170,000;
lower mobility, middle care 450,000;
lower mobility, lower care 230,000;
lower mobility, no care 50,000;
no mobility, higher care 10,000;
no mobility, middle care 40,000;
no mobility, lower care 190,000;
total 2,200,000
(Table 2, page 9).

The forecast caseload under the second draft criteria for PIP for 2015/16 (age 16-64) rate combination is:

enhanced mobility, enhanced daily living 340,000;
enhanced mobility, standard daily living 190,000;
enhanced mobility, no daily living 230,000
standard mobility, enhanced daily living 110,000;
standard mobility, standard daily living 250,000;
standard mobility, no daily living 190,000;
no mobility, enhanced daily living 90,000;
no mobility, standard daily living 250,000;
total 1,700,000
(Table 1, page 8)

The number of PIP claimants is therefore forecast to be 500,000 fewer in 2015/16 than would have been the case under DLA.

The number of people expected to be getting the enhanced/higher mobility with no care increases from 130,000 under DLA to 230,000 under PIP.

The number of people receiving the either rate of mobility but no care increases from 180,000 under DLA to 420,000 under PIP.

Those expected to be receiving enhanced and standard daily living/higher and middle care with no mobility increases from 240,000 under DLA to 340,000 under PIP.

A reduction is forecast however in the figures where people are receiving mobility and daily living /care, from 1,760,000 under DLA to 890,000 under PIP.

In respect of Carer’​s Allowance (CA) the DWP does not expect any significant impact on the level of expenditure nor on the number of claimants (pages 10 to 11).

In terms of health impacts, the DWP suggests evidence is limited about changes in income and health, and does not expect “​that reducing one source of support for disabled people with lesser barriers to participation will have an adverse impact on health.”​

The loss of benefit could in fact have “​positive​”​ impacts on health if more disabled people move into work (page 10).

The impact assessment can be found on the DWP website


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