Brits on benefits could get other forms of support – such as therapy or healthy meals – instead of spending money on it Worksocial security reforms, has emerged.
Since he became Prime Minister, Andy Burnham has vowed to “get really serious” about cutting the country’s rising welfare bill.
But he has ruled out “coarse cuts” to benefits, amid warnings of a new revolt from the Labor left if he pursues a “punitive” approach to cutting social spending.
Sir Stephen Timms is currently carrying out a major review of the Personal Independence Payment (PIP), the main disability benefit in England and Wales.
His interim report, published last month, left open the possibility that other forms of support could replace cash payments in the benefits system.
“People’s needs and additional costs vary significantly, and the current system does not always recognize these differences or provide appropriate support,” the report said. ‘Although the Review knows that PIP helps with independent living, it is unclear whether other forms of support would be more effective.’
The think tank Good Growth Foundation, which has close ties to Labour, has now published new research showing that almost half of claimants would give up £1,000 a year in cash payments in return for services such as therapy and healthy meals.
The think tank is led by Praful Nargund – a skills adviser to Work and Pensions Secretary Pat McFadden – and The times reported that ministers will consider plans to replace financial benefits with other forms of support in some cases.
A poll of 1,000 claimants found that 20 per cent would trade £50 or more a week for at-home support, such as a carer, with physiotherapy or healthy meals (19 per cent) close behind.
People aged 16 to 34 were more likely to choose a service over cash and were more interested in employment-oriented services, the Good Growth Foundation think tank found.
The number of people in England and Wales claiming PIP has now passed four million for the first time, with the number of claimants roughly doubling since 2019.
Spending on PIP – designed to help with daily tasks and extra living costs if someone has a long-term physical or mental health condition or disability – is expected to rise to more than £41 billion by the end of the decade.
The Good Growth Foundation surveyed recipients of health and disability benefits – including PIP – and found that almost half would voluntarily trade part of their benefits for services such as home support, physiotherapy, therapy or skills training.
The research found that 49 percent of benefit claimants would trade at least £20 a week of their benefits for at least one service, while one in three (31 percent) would trade at least £50 – the equivalent of £2,600 a year.
Of all 1,000 applicants surveyed, one in five would trade £50 or more per week for home support such as a carer (20 per cent), with physiotherapy (19 per cent) and home adjustments (18 per cent) close behind.
The 16 to 34 age group were more likely to choose a service over cash and were more interested in employment-oriented services, the think tank found.
It proposed that the Department for Work and Pensions (DWP) should offer ‘a voluntary menu of services in addition to existing cash entitlements, allowing claimants to exchange part of their benefit for support received by the state at better than market value’.
The Good Growth Foundation suggested that such a model could deliver billions of pounds a year in savings.
Possible services that applicants could benefit from surveyed included weekly physiotherapy or personal trainer sessions; delivery of healthy ready-made meals or recipe boxes; regular weekly support with cleaning or shopping; and weekly counseling or cognitive behavioral therapy sessions to help manage conditions such as anxiety, depression or chronic fatigue.
Data from the Department for Work and Pensions (DWP) showed that there were four million claimants entitled to Personal Independence Allowance (PIP) at the end of April.
Louisa Dollimore, strategy director at the Good Growth Foundation, said: ‘Our benefits system must start with the idea that everyone, regardless of their condition, should have the opportunity to live the fullest life possible.
‘And it is the state’s job to unlock that potential. Our research shows that many people want not just cash, but also services that help them get ahead in life.
‘We need to move from a passive system that keeps people where they are, to an active system that invests in where they could be, through therapy, skills, job coaching, home support and the other services people actually want.’
A DWP spokesperson said: ‘The Government is committed to reforming the PIP and has commissioned the Timms Review, produced in collaboration with people with disabilities, to ensure it is fit for the future. Their final report will be published later this year.’
