The Department for Work and Pensions (DWP) has announced a significant shift in how it assesses benefit claimants, with plans to dramatically increase the number of face-to-face assessments for Personal Independence Payment (PIP) and Universal Credit.
Major Shift in Assessment Policy
This move marks a decisive step away from the pandemic-era reliance on remote evaluations. The DWP stated it will "increase face-to-face assessments" after they were largely suspended during the Covid-19 crisis. While the department has confirmed that contracts will still require 80 per cent of assessments to be completed virtually, the proportion conducted in person is set to rise sharply.
For Personal Independence Payment (PIP) assessments, the face-to-face rate will jump from just 6% in 2024, equating to 57,000 cases, to 30% of all assessments. Similarly, the rate for Work Capability Assessments (WCAs), which determine eligibility for the health-related component of Universal Credit, will increase from 13% (74,000) to 30%.
Reforming the System and Tackling Backlogs
Labour's Secretary of State for Work and Pensions, Pat McFadden, framed the changes as part of a broader commitment to overhaul the welfare system. "We’re committed to reforming the welfare system we inherited, which for too long has written off millions as too sick to work," McFadden said.
He explained the dual purpose of the policy: "That is why we are ramping up the number of assessments we do face-to-face and taking action to tackle the inherited backlog of people waiting for a Work Capability Assessment." The government estimates these reforms will generate savings of £1.9 billion, aiming to create a system that "supports those who need it while helping people into work and delivering fairness to the taxpayer."
Longer Award Periods and Separate Reviews
Alongside the assessment changes, the DWP is extending the review period for many PIP claimants. Currently, awards can be reviewed in as little as nine months, though most people see no change. For the majority of claimants aged 25 and over, this will now extend to a minimum of three years for a new claim. If they remain entitled at their next review, the period could rise to five years.
This announcement comes as the Labour government conducts separate, wide-ranging reviews of the welfare state. Sir Stephen Timms is leading a review specifically into PIP to propose further changes. Furthermore, a major investigation into rising economic inactivity among young people, chaired by former health secretary Alan Milburn, has been launched. A panel of experts including former John Lewis boss Charlie Mayfield and ex-Bank of England chief economist Andy Haldane will contribute recommendations.
