DWP refuses to rule out cuts to PIP next year

The Department for Work and Pensions (DWP) has refused to rule out spending cuts to personal independence payment (PIP) when it completes a year-long review that is being headed by the disability minister.

Misleading reports in right-wing media last week suggested that updated terms of reference for the review showed ministers had ruled out any cuts to PIP spending.

But the terms of reference suggest exactly the opposite: that spending will not be allowed to be higher than the “projections” published by the Office for Budget Responsibility (OBR) but could be lower.

The terms of reference say: “The purpose of the Review is to ensure that PIP is fair and fit for the future rather than to generate proposals for further savings.

“However, the sustainability of the system is an important consideration and so the Review will operate within the OBR’s projections for future PIP expenditure, to ensure it is there to support generations to come.”

This second sentence has been added since the original terms of reference were published in June.

The following sentence has also been added to the terms of reference since June: “We want to ensure public money is spent as effectively as possible in supporting disabled people to live independent and fulfilling lives.”

This week, DWP refused to clarify what it meant by these two sentences, and whether the review could lead to cuts to PIP spending.

Instead, a DWP spokesperson said: “We want a welfare state that is there for those who need it and supports people into work, while delivering fairness to the taxpayer.

“That’s why we’re launching the Timms Review to make sure PIP is fair and fit for the future.

“We’re shifting our focus from welfare to work, skills and opportunities so more people can move out of poverty and into good, secure jobs as part of the Plan for Change.”

Last week, DWP announced the names of the two disabled people – Dr Clenton Farquharson and Sharon Brennan – who will co-chair the review with Sir Stephen Timms, the minister for social security and disability.

Brennan is a former director of policy and external affairs at National Voices, a coalition of English health and social care charities, and a former member of the Disabled Persons Transport Advisory Committee.

Farquharson is a consultant, associate director at Think Local Act Personal, and a board member of both Disability Rights UK and the Race Equality Foundation.

DWP has also launched a recruitment process for the 12 members of the PIP review’s steering group.

The majority of the steering group will be disabled people or representatives of disabled people’s organisations.

These positions will be paid, with a daily fee of £300 for up to five days a month until autumn 2026.

As the Benefits and Work website pointed out, this is likely to mean the steering group will have only about 55 days to complete its work.

It also pointed out that steering group members will not need to sign a gagging clause, although they will be expected to “maintain the confidentiality of information shared in confidence”.

There was shock and alarm this summer when DWP imposed a gagging order – which was later removed – on members of its new Independent Disability Advisory Panel.

In a parliamentary written statement, Sir Stephen said the PIP review would be the first time the government had undertaken co-production with disabled people “on this scale”.

But the terms of reference make it clear that final decisions on any changes will be made by Labour’s new work and pensions secretary, Pat McFadden.

Meanwhile, Benefits and Work also highlighted a string of errors, concerning statements and misleading claims made by Reform UK in a press conference last week on the party’s plans to slash PIP and target the Motability scheme.

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