Why Are So Many More People Claiming PIP?
28th June 2024
As the Conservatives plan to slash personal independence payment (PIP) to pay for tax cuts, arguing that far too many people are getting awards for minor illnesses, a think tank has undertaken research to find out the actual causes of the increase in claims for PIP and other disability and incapacity benefits.
250,000 PIP claims in three months
The latest PIP statistics reveal a record number of applications, with a quarter of a million new claims being lodged in the three months to April 2024. This is an increase of almost half since April 2021.
The amount spent on disability and incapacity benefits was fairly constant until 2013-14, but in the next ten years spending on working age incapacity benefits rose by 34% and disability benefits by 89%. In terms of cost, the bill has risen (in 2024-25 prices), from £28 billion to £43 billion.
PIP is not getting easier to claim
In spite of what tabloid press and government ministers may assert, it is not getting easier to qualify for PIP. Success rates for new claims have fallen since PIP was introduced in 2013 and award rates for DLA to PIP forced transfers have not altered over time.
Moreover, the DWP considers that the rate of fraud in relation to PIP is so small that it is assessed at 0% in the 2024 "Fraud and error in the benefits system annual report".
So what has caused the huge rise in claims?
The Resolution Foundation's 38 page report "Under strain. Investigating trends in working-age disability and incapacity benefits" offers some important answers.
Poorer health
Since 2011, improvements in life expectancy have slowed and have now begun going backwards, suggesting that people are getting less healthy.
And the number of people who report that they have a "long-standing illness, disability or impairment which causes substantial difficulty with day-to-day activities" has risen from 5.9 million to 8.9 million in the last decade.
So, it is likely that as the UK population becomes less healthy - and has to wait longer and longer for treatment - more people are becoming eligible for disability and incapacity benefits
Longer awards
In part because of the DWP's inability to carry our reviews on time, the length of time people remain on PIP is much longer than was intended when the benefit was introduced, meaning that the caseload has grown larger.
Falling value of other benefits
The value of basic out-of-work benefits has fallen over time.
A single person claiming JSA was 7.6% worse off in in April 2024 compared to April 2010. At a time of a serious cost of living crisis, this is a powerful incentive to apply for health related benefits.
A single person getting UC will see their award more than double if they are also eligible for the health element. An award of PIP would equally make a dramatic difference to their income.
So people who might not have been prepared to face the unpleasantness of a WCA or PIP assessment in the past may be more willing to do so now.
Rising state pension age
Overall, a growing, ageing population and a rise in the state pension age has led to 25% more people being eligible for incapacity and disability benefits.
But only just over half of the spending on working age disability benefits is due to a higher caseload - the rest is due to award rates being higher.
Removal of the lowest level of support in PIP
DLA has three levels of award for the care component. When PIP was introduced, the lowest level was done away with in the expectation that this would cut costs. In reality, it has had the opposite effect: the average value of awards has gone up.
In fact, 31% of claimants who had been getting the lowest level of DLA care were awarded the standard level of the PIP daily living component when forcibly transferred. Remarkably, 30% got the enhanced component.
In other words, whilst the DWP expected most claimants to lose out because of the removal of the lowest rate, over 60% of claimants are actually better off.
The same thing is happening when young people transfer from Child DLA to PIP, with 63% of claimants receiving a higher award of PIP than they did of DLA.
Proposed Abolition of the WCA
One issue the Resolution Foundation did not deal with is the proposed abolition of the WCA.
The Conservatives have said they intend to abolish the WCA and make receipt of PIP the basis for being eligible for UC health. Many claimants believe this may be driving people to apply for PIP now, because they are afraid they will lose their ESA or UC Health if they do not do so.
Increased awareness of PIP qualifying criteria
Another issue the Resolution Foundation did not cover is the effect of social media.
Readers have reported to us a growing number of social media sites which encourage people to claim PIP and explain who can get it and how to apply. Often the information given is inaccurate or incomplete, but such sites do undoubtedly raise awareness.
In addition, the Disability News Service has highlighted the rise of “clickbait” news stories about PIP, particularly on local newspaper sites. Often these ‘follow a familiar pattern, with headlines telling readers “DWP to pay extra £362 a month for one of these 23 conditions”, “DWP says it'll pay £691 to people with any of 87 common conditions” or “87 common muscle and joint conditions that qualify you for £737 from DWP”’.
Again, the information is often misleading, but it means more people are finding out about PIP.
What do you think?
The Resolution Foundation have carried out a well-researched and carefully supported examination of some of the factors behind the rise in claims for incapacity and disability benefits.
But they are unlikely to have uncovered all the reasons.
Read more at the Benefits and Work web site HERE
