Disability Living Allowance Reform

The Government is committed to maintaining an extra-costs, non-means-tested disability benefit to support disabled people. Disability Living Allowance (DLA) has become confusing and complex and the Government proposes to introduce a new benefit, Personal Independence Payment (PIP), in 2013/14 when it will begin reassessing the working age (16-64 year olds) caseload. PIP will consider the impact an individual's impairment or health condition has on their daily lives. Support will be prioritised for those who face the greatest day-to-day challenges. PIP will have two components: "Mobility" - based on ability to get around; "Daily Living" - based on ability to carry out other key activities necessary to participate in daily life. The benefit will only be available to those with a long-term health condition or impairment, and individuals will have to qualify for a period of six months and be expected to continue to qualify for a further six months before an award can be made. There will be an objective assessment of individual need, with no automatic entitlement. The assessment is being developed in collaboration with a group of independent specialists in health, social care and disability, including disabled people. The Government is considering how best to take account of use of aids and adaptations, and how they are used and paid for. Awards will be reviewed periodically, but individuals will still be responsible for reporting any changes in circumstances. The feature of DLA entitling the individual to other help and support will be retained.

On 6 December 2010, the Government published Disability Living Allowance reform (Cm 7984, ISBN 9780101798426) which set out its reform proposals and sought people's views. This document outlines the responses received, from both individuals and organisations, and provides further information regarding the replacement of DLA and the introduction of Personal Independence Payment for people of working age (16-64) from 2013/14. The Government will ensure that the new Personal Independence Payment remains a non-mean-tested and non-taxable cash benefit which people can spend in a way that best suits them. The aim, through the introduction of Personal Independence Payment, is to make the benefit fairer, more straightforward to administer, and for it to be easier and clearer to understand. There will be two components of Personal Independence Payment; a daily living component and a mobility component, each with a standard and enhanced rate. The Government is developing the assessment for Personal Independence Payment in collaboration with a group of independent specialists and will consider an individual's ability to carry out key everyday activities. The greatest priority in awarding the benefit will be that it goes to those individuals who are least able to carry them out. The application and administration process will be made as straightforward as possible. The Personal Independence Payment will not be extended to new or existing claims for children from 2013/14. And the proposal to withdraw the DLA mobility component from people in residential care will not now be implemented.

The Government's Welfare Reform Bill includes measures to introduce a new benefit in 2013: the Personal Independence Payment (PIP) will replace Disability Living Allowance (DLA) for working-age claimants, to help meet the additional living costs of disabled people. A new eligibility assessment process will also be brought in. But this report finds that the Government should not introduce Personal Independence Payment (PIP) assessments nationally until it has satisfied itself, in the planned initial roll-out of the new assessment in a limited geographical area, that the assessment is empathetic and accurate. The report highlights a number of areas of concern. The current draft criteria on which the assessment will be based are still too reliant on a "medical model" of disability, and may fail to take sufficient account of the impact of social, practical and environmental factors, such as housing and access to public transport, on disabled people's ability to participate in society and the additional costs they therefore incur. The Committee believes that the Government should listen to the views of disabled people and their representative organisations and conduct a further trial before the criteria are adopted and the new assessment is introduced. Once the initial assessments for PIP have been completed in the first geographical area, the Government should look again at the value of face-to-face assessments for PIP claims where claimants' conditions are severe and unlikely to change. It is also important that DWP gets the contracting process with the private suppliers right.