DWP plans to change PIP – with vouchers not ruled out | Personal Finance | Finance

Work and Pensions Secretary Liz Kendall has hinted at a shake-up for Personal Independence Payments (PIP), leaving the door ajar for the introduction of a vouchers system. Despite acknowledging “real concern” about such a move, she refrained from the outright dismissal of the previous government’s idea of the controversial voucher scheme.

Speaking before the Work and Pensions Committee on Wednesday, Ms Kendall recognised the significant implications such a policy could have on the “empowerment” and independence of recipients. However the Leicester MP further indicated her plans to bring forward fresh proposals for PIP reform.

The previous Government floated the idea of replacing PIP (Personal Independence Payment) cash payments – which are given regardless of income to support individuals with disabilities in their daily life – with a voucher system. The aim was to rein in the soaring numbers of disability benefit recipients, which are expected to cost £28 billion by 2028/29, making for an alarming 110% rise in outlays since 2019.

However, these proposed shifts sparked controversy due to concerns that they would strip PIP claimants of their independence.

Ms Kendall commented on the issue: “I was very struck particularly by the comments people made around shifting support to vouchers and where many organisations said their real concern was that it took away people’s autonomy and particularly when services are so stretched and tight.

“I will be putting forward our own proposals to reform sickness and disability benefits. This is extremely difficult and I know people really want more detail, but we won’t do that until we’re absolutely ready and have had the proper discussions with people.”

When posed the question whether she would discard the voucher scheme concept entirely, she did not commit either way.