DWP update after concerns PIP claimants face £2,500 pay cut | Personal Finance | Finance
Labour ministers have explained the rules around PIP eligibility after concerns claimants could lose out on entitlement due to a specific rule.
PIP (Personal Independence Payment) provides payments to help cover the extra costs that a claimant incurs due to a long-term health condition or disability.
The benefit includes a daily living part and a mobility part, with a lower and upper rate depending on your level of need.
Conservative MP Charlie Dewhirst asked the Government if it had looked at the impact on claimants of losing out on entitlement to the mobility element, due to a particular 20-metre walking rule used when assessing how much a person should get.
He wanted to know if ministers had considered both the “mental health and financial impact of losing entitlement”. The mobility element currently pays £29.20 or £77.05 a week.
This means if you were on the higher rate and became no longer eligible for any the mobility element, your income would drop by just over £4,000 a year.
The 20-metre rule in question refers to the ‘moving around’ activity, which is one of two activities you are scored on to give you a total number of points to work out your entitlement.
You need a total of at least 8 points to get the lower rate and a total of at least 12 points to get the higher rate.
To get any points for the activity, you need to at least be limited in your movement such that you can stand and then move more than 50 metres but not more than 200 metres, either aided or unaided. In this case, you would get 4 points.
The 20-metre rule comes in with the next category – if you are less mobile, and you can stand and then move unaided more than 20 metres but no more than 50 metres, you would get 8 points, enough on its own to qualify you for the lower rate.
But if you can stand and then move within the same limits, but only using an aid or appliance, you would get 10 points. If your situation is even more restricted, and you can stand and move more than one metre but no more than 20 metres, either aided or unaided, you would get 12 points, entitling you to the upper rate.
You would also get 12 points if you cannot stand at all or move more than one metre, whether aided or unaided.
DWP minister Sir Stephen Timms responded to the question. He summarised the walking distance rule in this way: “For those with physical restrictions, the enhanced rate of the PIP mobility component is for those “unable” or “virtually unable” to walk.
“The 20 metre distance distinguishes between those whose mobility is significantly more limited than others and who face the greater barriers on a day-to-day basis, (those who have the highest need).”
Further explaining the rules, he said that distance is not the only factor when assessing a person for the ‘moving around’ activity, as there is also a ‘reliability’ criteria.
The minister said: “This means individuals who can walk more than 20 metres can still receive the enhanced rate of the mobility component if they cannot do so safely, to an acceptable standard, repeatedly or in a reasonable time.
“Whilst claimants can only reach an enhanced mobility award in activity 12 if they cannot reliably walk more than 20 metres, they may still qualify for a standard award should they satisfy another descriptor scoring a minimum of 8 points.
“Claimants can also reach a standard or enhanced mobility award by scoring 8, or 12 points respectively across activities 11 and 12 combined.”
If you were on the enhanced mobility rate of £77.05 a week, or £4,006.60 a year, and you were reassessed and dropped to the lower rate of £29.20 a week, or £1,518.40 a year, you would lose out on £2,488.20 a year.
Addressing the question directly, he said the DWP had not looked at the mental health impact of losing out on PIP due to the 20-metre distance rule.
Mr Timms said in his reply: “It would be extremely difficult to objectively separate the specific impact of this on mental health from other contributory factors.”
Nonetheless, the Government has launched a review of the PIP assessment, including the descriptors such as the 20-metre rule, with Mr Timms heading up this project.
The minister said: “The first phase of this work has now begun, which includes speaking to stakeholders to gather views on how best to approach the review, and the terms of reference will be published in due course.”