The Department for Work and Pensions (DWP) has signaled that the forthcoming Timms Review may lead to reductions in Personal Independence Payment (PIP) spending. Speaking to the Commons Work and Pensions Committee this week, DWP minister Pat McFadden stated there is “nothing to stop” the review from proposing reforms aimed at lowering costs associated with PIP.
McFadden explained, “Our terms of reference sent a clear message to the reviewers: do not propose a substantial increase in expenditure. However, measures to reduce costs remain on the table; we simply wanted to avoid recommendations for significantly higher payments.”
Highlighting changes in claimant demographics, McFadden noted, “PIP claimants now include more individuals with conditions such as anxiety, depression, and neurodiverse disorders. This raises an important question for the reviewers: is the benefit structured effectively to address this growing diversity of needs?” He added that he has encouraged reviewers to carefully consider this issue.
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Liberal Democrat committee member John Milne challenged the minister on the narrative around welfare spending, pointing out that welfare expenditure as a share of GDP remains comparable to levels during Margaret Thatcher’s tenure, which was not characterized by expansive welfare policies. Milne urged the government to present a more balanced perspective on welfare statistics to avoid policy overreach driven by exaggerated concerns.
McFadden responded, “Cost is indeed a factor, but it should not be seen negatively. We must be mindful of system costs and recent sharp increases in health and disability benefit expenses.”
This announcement coincides with data revealing that the number of PIP claimants has reached 4 million. According to DWP figures, 4,010,120 individuals in England and Wales were receiving PIP at the end of April — a 2% rise since January and a 12% increase since the last general election. The ruling Conservatives quickly suggested that cash payments to claimants should be reconsidered in favor of treatments or equipment support.
Most claimants (83%) are of working age, and more than a third (37%) receive the maximum weekly payment of £194.60. PIP is designed to assist individuals with long-term physical or mental health conditions in managing daily activities, but the growth in claimants has heightened scrutiny over its funding and future structure.