On the day we publish Emergency Stop, a new report analysing the economic and social impact of the Personal Independence Payment regulations, we call on the Government to ‘go back to the drawing board’ on proposals to replace disability living allowance (DLA), after it buried last-minute changes to criteria which will see thousands more disabled people with mobility difficulties lose out than expected.
The unexpected changes, slipped out following a Ministerial statement last month (13 December 2012), mean the criteria for the enhanced mobility rate of the new Personal Independence Payment (PIP), has tightened. The qualification has changed from being able to walk 50 metres to being able to walk 20 metres.
This not only condemns thousands more disabled people to the worry of losing out under the new benefit and the isolation this will bring; it also highlights the lie that the Government’s reforms are targeted to support those in need.
Government protestations about consultation are a nonsense if it takes no notice of what disabled people and their organisations say. Of the 173 consultation responses from organisations on the new PIP, only one suggested the qualifying distance for those who have the most difficulty getting around should perhaps be changed.
And why has there been no parliamentary debate on such a significant policy change? Is it because government has already decided this is about saving money rather than meeting need?
We’re also calling on the Government to incorporate people’s ability to undertake tasks ‘reliably, repeatedly, safely and in a timely manner’ into the regulations for PIP, which will ensure both assessments and appeal hearings consistently take account of factors such as pain, fatigue, breathlessness and other symptoms generated by undertaking tasks.
The ‘Emergency Stop’ report analyses figures supplied by the DWP and Motability, the organisation that supplies lease cars and specialist converted vehicles to disabled people claiming the higher mobility rate of Disability Living Allowance.
The analysis estimates that, under PIP, 428,000 fewer working age disabled people will qualify for the higher PIP rate (which allows access to the Motability scheme) by 2018. This could lead to 160,000 fewer Motability cars on the road.
Oxford Economics’ report ‘Economic and social impact of the Motability Car Scheme’ (2010) identified the Motability scheme’s contribution to the economy through car sales, employment generation and tax receipts. The new report shows that welfare reform plans will lead to a domino effect including the loss of:
- 5,692 jobs (from 21,080 jobs to 15,388 jobs in Motability-related industries)
- £544 million contribution to GDP (from around £2 billion to £1.45 billion)
- £126 million in tax receipts
It also highlights that the cost to the public purse of enabling disabled people to get to medical appointments could alone amount to about £8 million.
It’s not just disabled people who will lose out under the Government’s welfare reform plans. Changing from DLA to PIP means fewer people qualifying for Motability cars to the tune of about 50,000 fewer vehicles a year. Less demand means fewer jobs in the motor industry, a lower contribution to GDP and the exchequer, and a knock on effect on the second hand market, which also contributes to the economy.
In the meantime, disabled people will be less independent, less likely to be able to get or keep a job, more likely to give up self-employment and less able to care for their children or support other family members.
- Disability Living Allowance (DLA) is a benefit that helps individuals meet the additional costs that come from living with a disability and is payable to people in work as well as out of work
- For more information of our concerns about the PIP proposals, see our earlier post at: PIP Emergency – Act Now!
- Details of the Government’s proposals for PIP are available here: http://www.dwp.gov.uk/docs/pip-assessment-thresholds-and-consultation-response.pdf
- Projections of the number of people expected to be eligible for the enhanced mobility rate in May 2018, when migration will be complete, are available here: http://www.dwp.gov.uk/docs/pip-reassessments-and-impacts.pdf (tables 7 & 8)
- Esther McVey’s statement on PIP is available here: http://www.dwp.gov.uk/newsroom/ministers-speeches/2012/13-12-12.shtml
- The Oxford Economics publication, ‘Economic and social impact of the Motability Car Scheme’ (2010), is available for download at http://www.oxfordeconomics.com/my-oxford/projects/129035
- The We are Spartacus campaign group is an internet-based group of disabled and sick people from around the UK which campaigns for welfare benefits and social care services that enable disabled and sick people to live independently and with dignity.