A major review of the main disability benefit in England and Wales is considering whether claimants could be offered alternative support instead of cash payments in some cases.
Sir Stephen Timms, the minister leading the review, told MPs the government would not be “moving away” from providing cash to disabled people to help them with their extra living costs.
But the minister said the review was looking at whether some claimants of personal independence payments (Pip) could instead be pointed to other kinds of support.
Alternatives to cash payments could include NHS treatments, specialised equipment or employment support.
In initial findings published this week, external, Sir Stephen’s review found Pip was not working for millions of disabled people and needs fundamental change.
Declaring Pip was “not fit for purpose”, the interim report said people applying for the benefit had described the process as “dehumanising” and a barrier to work.
Pip claims, especially for conditions such as anxiety and ADHD, have soared in the years since the Covid pandemic, putting increasing pressure on the public finances.
Around 10 million working-age people (24%) report living with a disability, compared with under 17% in 2013/14.
The cost of Pip is expected to rise to more than £41bn by 2030, up from £15bn in 2020.
The review suggests a sweeping overhaul of the Pip assessment system is needed.
A Department for Work and Pensions spokesperson said the review’s final recommendations are due this autumn and “will lay the foundation for deep, sustainable reform”.
On Thursday the co-chair of the review, Sharon Brennan, told the she and Sir Stephen were considering how they could change the Pip assessment process.
“At the moment, it’s a very blunt process,” Brennan said. “It’s a yes or no answer, do you get cash or not, and we’re not really having conversations with people about what extra support they need to live the lives they want to live.”
She said the review would question whether the different levels of cash support available to Pip claimants “really reflects the real-life impact of disability” in 2026, stressing that increasing “participation in the workforce” would be an important part of any reforms.
Speaking in the House of Commons on Thursday, Sir Stephen said the review “is clear that the provision of cash to meet the additional costs of disability is vital”.
He added: “We will not be moving away from the importance of that, but I think there is a question about whether the process can also point people towards help that may be valuable to them in addition to, or in some cases perhaps instead of, a cash payment.
“There is help and support that people need, and I think the process could help to point people to that.”
He said the system “may be able to point people to the right place in the health service”, adding the review was “looking at all those issues and we will come back with recommendations in our final report”.
The interim report says the needs of disabled people and their extra costs “vary significantly, and the current system does not always recognise these differences or offer appropriate support”.