“PIP isn’t stretching far enough to cover the costs it’s meant for”: Money Wellness on why PIP reforms matter

Personal independence payment (PIP) helps people with disabilities and long-term health conditions manage the extra costs of everyday life. But is the current system doing enough to understand what people really need?

A new report from the Resolution Foundation, Hard Truths, explores how PIP could change, including how people are assessed and how support is provided.

Drawing on a new survey of more than 2,500 people receiving PIP, the report looks at how the system could better meet its aim of helping people cover the additional costs linked to their disability and live fuller, more active lives.

Here at Money Wellness, we welcome the conversation about making PIP work better.

But we also believe any changes must be carefully considered to make sure people who rely on this support aren't left struggling financially.

Our external relations manager, Rebecca Lamb, shares our thoughts on the report and what its proposals could mean for people receiving PIP.

What could change?

The Resolution Foundation has suggested several ways to improve the PIP system, including:

• A better assessment process: asking about the extra costs people face, not just what they can do day to day.
• Help with one-off expenses: providing separate payments for one-off costs such as mobility aids and home adaptations.
• More regular check-ins: making it easier for people to tell the Department for Work and Pensions (DWP) when their condition changes.
• Better access to support: helping disabled people take part more fully in everyday life and their communities.

We think understanding someone's circumstances means looking beyond a diagnosis or a snapshot of what they can do on a particular day.

As Rebecca explains:

“A test built around whether you can cook a simple meal or wash yourself tells the DWP very little about why you’re struggling or what it costs you.”

Being able to do something doesn't always mean it's easy, affordable or possible every day. We believe assessments should take a more rounded look at people's needs and the additional costs they face.

PIP makes a real difference

The Resolution Foundation's survey found that more than four in five PIP recipients aged 16 - 64 said their award helped them take part in at least one activity that supports their wellbeing or economic participation.

Many people receiving PIP also live with more than one health condition, and their symptoms can change from day to day.

As Rebecca says:

“The answer is far more complicated than the headlines suggest.”

Here at Money Wellness, we believe it's important to remember that everyone's circumstances are different. Support should reflect how a person's condition affects their everyday life, rather than relying on assumptions about what they can or can't do.

Extra costs are a real concern

The report found that 16% of working-age people receiving PIP reported no extra costs linked to their disability.

But we don't think this figure should be taken as proof that those people no longer need support.

“The assessment looks at what you can and can’t do day to day, not at what you spend, so it was never set up to measure extra costs directly," Rebecca explains. 

Someone's condition may change over time, or they may be having a better day when asked about their circumstances.

At the same time, many people are struggling to afford the essentials. The report found that 37% of people who reported extra spending on heating or energy because of their condition could rarely or never afford it.

“So for many people, PIP isn’t stretching far enough to cover the costs it’s meant for,” says Rebecca.

We believe this highlights why assessments need to consider the real financial pressures people face, including the cost of heating, transport and other everyday essentials.

Why help with one-off costs matters

Some disability-related expenses can be expensive, making them difficult to cover from a regular monthly payment.

Mobility aids, specialist equipment and home adaptations can all involve big upfront costs.

The Resolution Foundation proposes a separate, capped payment to help people afford these purchases.

Rebecca supports this idea, explaining how difficult it can be to save for larger expenses when an award is already being used to cover essentials such as heating.

We agree that help with larger, one-off expenses could make a real difference. But we also believe people need the flexibility to use their regular payments where they're needed most.

As Rebecca points out, asking people to provide receipts for every extra expense could create further problems.

“If you can’t afford to turn the heating up, you’ve no bill to show for the extra warmth you need, so on paper your costs look lower than they are,” she says.

We believe regular cash payments should continue to give people flexibility, with additional help available for larger, one-off costs.

Changes must not leave people worse off

While the proposals aim to improve PIP, changes to the assessment process could mean some people lose their payments.

This is a major concern for us at Money Wellness, particularly when many households are already struggling with the cost of living.

Rebecca warns:

“If they lose PIP with nothing in its place, the pressure moves straight on to their energy bills, their rent and their ability to keep up with everything else.”

We believe any changes must be carefully tested to understand how they'll affect people in real life. It's important to improve the system without leaving people unable to afford essential bills or other everyday costs.

Making it easier to get the right support

We also support the idea of making it easier for people to tell the DWP when their condition changes.

More regular check-ins could help people explain when their needs have increased, without having to wait years for a reassessment.

Rebecca would like to see this go further, so people don't have to repeat the same information to different organisations to access help with their bills.

As she explains:

“A “tell us once” system that shares information across services, with your consent, would mean help reaches people earlier, before bills start to build up.”

If your circumstances have changed, keeping a simple diary of good and bad days may also help you explain how your condition affects you.

People must come first

Here at Money Wellness, we believe the PIP system needs to recognise the realities of living with a disability or long-term health condition.

The Resolution Foundation's proposals raise important points about improving assessments, understanding additional costs and helping people access support more easily.

But any reform must be fair, carefully tested and designed around people's real needs. We must not lose sight of the financial impact changes could have on those who rely on PIP to help cover everyday essentials.

If you're struggling with bills or debt, Money Wellness can help you check what support you may be entitled to and explore your options.

You don't have to wait until things feel unmanageable to ask for help.