When "difficult decisions" regarding the welfare bill are revealed later this year, individuals who receive Personal Independence Payment (PIP) may see a reduction in their benefits. PIP pays up to £737 every four weeks and is meant to cover the additional costs associated with a disability or long-term physical or mental health condition; but, due to "unprecedented" demand, the costs are no longer manageable.
More money than the UK expenditures for education, transport, or law enforcement are spent by the government on benefits for working-age individuals with disabilities or medical conditions, totalling £69 billion. Over the next four years, spending on the Personal Independence Payment alone is expected to rise by more than 50%.
As welfare reforms loom that could restrict payments for the disabled, those who do get PIP may be entitled to extra money and help from other sources, Citizens Advice points out. A wide range of disability-related financial support is on offer from the DWP and other organisations. In addition, PIP isn't means-tested so claimants can also boost income from employment if their condition doesn't prevent them from doing some form of work.
of Universal Credit, can be awarded after GP sick notes have been handed in and a work capability assessment - different to the health assessment for PIP - has been carried out, if the claimant is then found unfit to return to employment.
Under the new payment rates from April, the Universal Credit standard allowance is £311.68 for a single person under 25, and £393.45 if you are aged 25 or over. With the LCWRA payment of £416.19 on top, this amounts to £727.87 or £809.64 respectively.
In future, the LCWRA category is set to be replaced by a Universal Credit Health Element which can only be accessed by those who already receive PIP. So a successful application for PIP could become crucial for this if those plans remain in place under Labour.
Another benefit that could help is Employment and Support Allowance (ESA). While income-related ESA is no longer open to new claims because it's a legacy benefit that's being phased out and replaced by Universal Credit, New Style ESA could be an option if you have paid National Insurance in the past two to three years.
You can claim New Style ESA even if your partner works or you and your partner have savings over £16,000 because - unlike means-tested benefits such as Universal Credit - it has no capital limits. So this could an option if you don't qualify for Universal Credit on the basis of the amount of savings.
New Style ESA is a regular fortnightly payment and also provides you with Class 1 National Insurance credits, which can help towards your State Pension and other contributory benefits in the future.
But be warned that if New Style ESA is claimed as well as Universal Credit, it's counted as income and is deducted from your payment, leaving you no better off overall. New Style ESA is paid at a rate of £90.50 a week if you are in the work-related activity group (where you are expected to prepare for finding a job) and £138.20 a week if you are in the support group (which has no work requirements).
You may qualify for a top-up called a disability premium if you are on PIP and also get Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), or Housing Benefit. Working Tax Credit has a disability element too.
However, all these are being replaced by Universal Credit so no new applications are being accepted and only existing claimants can get the premiums added. If you are receiving one of these benefits with a disability premium and have to move to Universal Credit under the DWP's managed migration, the total amount you receive will initially be kept at the same level by what's called transitional protection.
If you get the mobility element of PIP, you might be eligible for a Blue Badge and a vehicle tax discount or exemption. You may also qualify for a Motability Scheme vehicle if you get the enhanced rate of the mobility component.
In addition, people receiving either the daily living or mobility part of PIP can get a Disabled Persons Railcard and may be able to obtain a discount on their council tax and local bus travel. Council Tax Support criteria vary with each local authority so you would need to check.
If someone helps to look after you, they may be able to get Carer's Allowance or Carer's Credit. You could also get Carer's Allowance on top of your own PIP if you in turn provide care for someone else.
Some other benefit claims can end up reducing your PIP, however. If you get Constant Attendance Allowance you will get less of the daily living part of PIP and if you get War Pensioners' Mobility Supplement you will not get the mobility part of PIP.
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