Work has begun on plans to replace Personal Independence Payment (PIP) with a new benefit designed to improve fairness and dignity in the UK’s disability support system.
The Commission on Social Security has launched a consultation to introduce the Additional Costs Disability Payment, a new benefit proposal aimed at replacing PIP. This consultation is open to the public through online surveys and focus groups, allowing people with experience of the system to share their views.
The Trust for London funds the Commission, which is led by experts with lived experience of the UK social security system. The group has been working on welfare reform proposals since 2018, and after a pause in 2023/24, it is now moving forward with a revised plan.
What Is Changing?
PIP, currently claimed by 3.6 million people, is a non-means-tested benefit designed to help those with long-term health conditions or disabilities manage extra living costs.
At present, PIP is split into two components:
- Daily living
- Mobility
Each component has two payment levels, leading to four possible weekly rates:
| Current PIP Weekly Rates |
|---|
| £28.70 (Lower Rate) |
| £76.40 (Higher Rate) |
| £68.10 (Lower Rate) |
| £184.30 (Higher Rate) |
The proposed replacement system would simplify payments into three levels:
| Proposed Additional Costs Disability Payment Rates |
|---|
| £83.70 – For claimants needing minimal support |
| £152.15 – For those needing more support |
| £230.77 – For claimants with the highest needs |
These changes would expand eligibility criteria to better reflect different types of support needs, including:
- Personal care
- Household tasks
- Social engagement
- Mobility assistance
Another major reform proposal is ending routine reassessments for those with lifelong conditions, ensuring long-term support without constant reviews.
How Will Assessments Change?
Under the new system, disability assessments would work differently:
- Claimants and assessors would collaborate to determine needs rather than focusing on eligibility restrictions.
- Decisions would be based on a holistic review of support needs rather than strict scoring criteria.
- PIP awards could be made for life where appropriate, reducing unnecessary reassessments.
These recommendations align with calls from disability rights organisations for a more supportive and dignified approach to benefits.
Why Is PIP Being Replaced?
The DWP has acknowledged that the current system needs reform. A Green Paper, set to be published in Spring 2025, will outline the Labour Government’s proposals to restructure disability benefits.
Meanwhile, the DWP is continuing with previously announced reforms to PIP eligibility, payment structures, and assessments. These changes aim to save £3 billion in welfare costs, continuing plans started under the previous Conservative administration.
How to Take Part in the Consultation
The Commission on Social Security has encouraged disabled people and advocacy groups to participate in the consultation by:
- Filling out an online survey
- Joining focus groups
The results will shape the proposals that the Commission puts forward to the DWP later this year.
Ken Butler from Disability Rights UK has urged people to take part, stating:
“The consultation is a crucial step toward securing fair, dignified, and holistic support for disabled people, ensuring it reflects their needs and realities.”
The Commission is also considering wider systemic changes, such as the creation of a National Independent Living Service, to provide better long-term support.
DWP’s Response
A DWP spokesperson confirmed that welfare reform remains a priority, stating:
“We have been clear that the current welfare system needs reform, so it is fairer on the taxpayer while ensuring people get the support they need to move into work.”
The department is expected to announce further changes within weeks, working closely with disabled people, disability organisations, and those with health conditions to shape new policies.
Key Takeaways
- PIP may be replaced by the Additional Costs Disability Payment under new reform proposals.
- Payment levels would change to a simplified three-tier system.
- Eligibility criteria would expand to consider more support needs.
- Assessments would shift focus from proving disability to identifying support needs.
- The DWP will release a Green Paper in Spring 2025 with detailed reform plans.
- The public consultation is open now, and the results will influence final proposals.
The planned PIP replacement could significantly change how disability benefits are assessed and paid in the UK. While details are still being finalised, the consultation offers a chance for disabled individuals and advocacy groups to shape the future of social security.
With the DWP set to release its own Green Paper soon, it is clear that major changes to disability benefits are on the horizon.
For those affected, taking part in the consultation and staying informed about upcoming reforms is essential.
Source: Link
FAQ’s
Is PIP being replaced?
The Commission on Social Security has proposed replacing PIP with the Additional Costs Disability Payment, designed to provide fairer and more dignified support.
What are the new proposed payment rates for PIP replacement?
The new system would introduce three rates: £83.70 for minimal support, £152.15 for higher support needs, and £230.77 for significant support needs.
How will assessments change under the new system?
Assessments will focus on identifying support needs rather than proving disability, and long-term claimants may no longer face regular reassessments.
When will the DWP announce its disability benefit reforms?
The DWP is expected to release a Green Paper in Spring 2025 outlining the government’s proposals for reforming disability benefits.
How can I take part in the consultation on PIP replacement?
You can participate in the consultation through online surveys and focus groups hosted by the Commission on Social Security.
