Ministers are discussing how to encourage disability claimants to swap cash payments for other forms of support amid concerns not enough would sign up voluntarily for the expected change.
The Government is expected to move towards a system in which some disabled people could receive “in kind” support rather than cash benefits, according to people familiar with the plans.
Sir Stephen Timms, the author of the wide-ranging review into disability benefit which is expected to recommend the change, appeared to rule out claimants being forced to swap cash for other help, as previously revealed by The i Paper.
He told Disability News: “There may be circumstances in which it will be better for people claiming PIP (Personal Independence Payments) to request the funding goes into a service of some kind rather than them receiving the cash.”
But he emphasised: “This is what is being suggested on a completely voluntary basis, completely voluntary.”
The i Paper understands discussions in government have taken place on how best to incentivise claimants to switch to therapy or support in lieu of cash payments, with a mandatory rule being discussed, but apparently now ruled out.
The proposal is among a number of emerging recommendations from an expert committee largely made up of disabled people, which are expected to form the basis of Timms’s review of Pip – which helps disabled people cope with day-to-day living.
It comes as Labour grandee Alan Milburn and Pat McFadden, the Department for Work and Pensions (DWP) secretary, are preparing to reform the welfare system by cutting access to benefits while issuing a host of employment support.
Benefit sanctions
It is understood that young people who fail to take up intensive support to help them into work will face benefits sanctions.
A central option under consideration is removing the Universal Credit health element for under 25s and replacing it with intensive work report – including for existing claimants, according to newspaper reports.
The Guardian reported that the reforms under debate were much bigger than previously thought, with ministers considering reducing or withdrawing entitlements for young people. Those with the most severe and debilitating disabilities would be protected from the cuts.
The reform recommendations are expected to be published in Milburn’s report into young people not in employment, education, or training – also known as “Neet” – which is likely to be published shortly after the Budget on 28 October, with discussions ongoing about its exact release date.
While Milburn’s reforms are expected to bring down the welfare bill, the Timms panel – co-chaired by disability campaigner Sharon Brennan and Dr Clenton Farquharson – is not expected to identify cuts.
Pip, the main disability benefit which is now claimed by 4 million people, is awarded according to a points-based system that takes into account how an applicant’s health condition affects their ability to perform daily tasks.
Timms previously told the Commons the Government will not be “moving away” from the importance of monetary support, but that the review is looking at whether the welfare system can direct people towards help “in addition to or, in some cases, perhaps instead of a cash payment”.
While some of the changes being discussed could technically be changed via secondary legislation, it is understood the wider response to the reports is likely to require primary legislation because the changes will be more far-reaching.
In Andy Burnham’s keynote conference speech, he outlined the Government’s approach for a “fundamental rethink of the welfare system” to create savings to invest in work placements, apprenticeships and mental health support for young people.
“We will require young people to take up the help presented to them – guaranteeing in-work support and not leaving those out of work losing confidence and connection,” he said.
The Prime Minister insisted savings will not be made via “crude cuts” but by “investing in people in their success, supporting them to get where they want to be, rather than paying for failure”.
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