Labour ministers considered means-testing PIP, but later ruled it out, watchdog’s report shows

Labour ministers considered the possibility of means-testing personal independence payment (PIP) last year, but then ruled out the option, the Department for Work and Pensions (DWP) has admitted.

A decision notice issued by the information commissioner reveals that ministers considered means-testing PIP in the “early days” of the Labour government, which was elected in July 2024.

But the potential policy, which has been under discussion within DWP for at least five years – and almost certainly much longer – was rejected by early this year.

The information came following a freedom of information request by welfare rights expert Finn Keaney, who asked DWP in May for reports produced since Labour came to power in July 2024 that discussed the possibility of making PIP a means-tested benefit.

When DWP responded, it admitted that it “holds information relevant to your request”.

It also admitted that there was “a legitimate public interest in understanding the rationale behind proposed changes to disability benefits, including whether and how the Department has considered the option of means-testing PIP”.

It then added: “The information requested includes early-stage analysis and internal advice that is directly informing live policy development.”

But it refused to release the documents, taking advantage of a Freedom of Information Act exemption that “protects the private space within which Ministers and their policy advisers can develop policies without the risk of premature disclosure”.

Keaney complained to the Information Commissioner’s Office (ICO) about DWP’s refusal to release the documents.

Although the commissioner has now ruled in DWP’s favour, the ICO decision notice makes it clear that means-testing PIP was considered by Labour DWP ministers and then ruled out as a policy option.

DWP told the commissioner that the advice and analysis documents it held were “part of active policy discussions” that influenced the government’s decision-making on PIP and the broader system to support disabled people.

And it said the material included “advice and analysis developed during early policy formulation and was considered alongside other potential options”.

Keaney had previously pointed to the limited opportunity for public scrutiny of many of the government’s plans for welfare reforms, and to the risk that DWP was avoiding “meaningful scrutiny and feedback from those affected”.

He told DWP earlier this year that this meant there was “an increased urgency and importance for the public to have oversight of welfare policy at the earliest stages of its development”, to avoid undermining democracy and restricting the public’s ability to hold the government to account over policy development.

But DWP told the commissioner that the government has now “confirmed its commitment to maintaining PIP as a non-means-tested cash benefit”, and it warned that “publishing advice on policy options not pursued could lead to unnecessary confusion or concern”.

The department also acknowledged the “legitimate public interest in understanding the rationale for changes to disability benefits and how means-testing of PIP has been considered” but said that PIP reform was “highly sensitive and remains under active public and Parliamentary scrutiny”.

Despite DWP admitting that means-testing PIP had been ruled out, the commissioner said that releasing the documents “would have a direct and detrimental impact on the policy development process”.

He said there would be “a significant public interest” in the information because it would “aid the public’s understanding of policy considerations relating to welfare reform” and would provide “interested stakeholders” with an “insight into the analysis of the issues in question”.

But he concluded that “the balance of the public interest” meant the papers should not be released.

The government is currently reviewing the future of PIP, with the review led by Sir Stephen Timms, the minister for social security and disability, and two disabled co-chairs, Dr Clenton Farquharson and Sharon Brennan.

There has been mounting evidence that DWP civil servants have been keen – and possibly still are – to cut spending on disability benefits by means-testing PIP.

Two years ago, Disability News Service (DNS) was told that participants in focus groups had been asked questions about which groups of people “deserve” various benefits and what they think about the idea of means-testing “extra cost” benefits.

Questions about the “extra cost benefit” ended with participants being asked whether it should be means-tested on the grounds of “affordability”, although it was never clear who had funded the focus groups.

Two years earlier, the Conservative government had published its Shaping Future Support green paper, which suggested that ministers could create a “new single benefit” to simplify the disability benefits application and assessment process, which could “provide support for disabled people and people with health conditions on low income and with extra costs”.

Work and pensions secretary Therese Coffey later told DNS at a fringe meeting at the party’s annual conference in October 2021 that merging PIP with universal credit was “on the table”.

Just a month later, DNS reported how a DWP civil servant had told a disability charity that the Conservative government planned to merge PIP with universal credit, although not for at least six years.

Meanwhile, new official statistics show complaints about DWP have rocketed in the last year.

The number of complaints received rose from 5,260 in the quarter ending September 2024 to 8,005 in the quarter ending September 2025, an increase of 52 per cent.

The most striking increase related to universal credit, where complaints increased by 82 per cent compared to the September 2024 quarter (from 2,200 complaints to 4,005).

Complaints about DWP mistakes, delays, and a lack of respect from DWP staff all rose on the previous quarter.

Complaints to the Independent Case Examiner, which act as an appeal process for those not satisfied with the outcome of a DWP complaint, also rose steeply.

For the September 2025 quarter, ICE received 2,645 complaints, an increase of 13 per cent from the previous quarter (2,334 complaints), and an increase of 61 per cent from September 2024 (1,642).