A significant shift in how Personal Independence Payment (PIP) claims are assessed is costing the taxpayer billions of pounds, according to a new report. The Department for Work and Pensions (DWP) has been presented with findings that show tribunal judges are effectively widening the criteria for who qualifies for the vital disability benefit.
The Appeal System: A "Parallel Assessment"
The think tank Policy Exchange published a report stating that the appeals process has created a "parallel assessment system." This system allows claimants to have their cases, in effect, reassessed by judges who interpret the eligibility rules more broadly than initial DWP decision-makers.
Jean-André Prager, the report's author, argued that "the appeals system has become a substitute for good decision-making rather than a check on it." The analysis indicates that if a claim is not approved by the DWP, there is a high chance it will be allowed on appeal by these tribunals.
Rising Claims and Financial Pressure
The report highlights a rapid increase in PIP claims, with more than 1,000 new claims being registered every day. The fastest growth is reportedly among young people and those with mental health conditions.
Former Conservative justice secretary Sir Robert Buckland commented on the financial strain, warning that the system "absorbs a breathtaking amount of public expenditure and is clearly unsustainable." The Policy Exchange suggests that simply tightening one PIP mobility rule and reverting some criteria to pre-pandemic levels could save close to £750 million.
Calls for a System Reset and Government Response
There are now strong calls for the power to interpret eligibility rules to be "returned to the lawmakers" rather than residing with judges. The report advocates for a fundamental reset of the process to ensure consistency and control costs.
In response, a Labour Party Government spokesperson outlined their approach: "We’re fixing the broken welfare system we inherited, including through a package of measures to tackle the backlog of people waiting for a work capability assessment and save nearly £2bn by the end of the decade." They also cited changes to Universal Credit and the upcoming Timms Review, which aims to ensure PIP is "fit and fair for the future."
The debate places the DWP at the centre of a critical challenge: balancing compassionate support for those with genuine needs against the necessity of managing a sustainable welfare budget for the nation.
