Personal Independence Payment

Personal Independence Payment (PIP) is a welfare scheme initiated in the United Kingdom to help working-age adults with the additional expenses of living with a disability or health condition. It is not linked to an individual's ability to work; it is available for both employed and unemployed. It is a tax-free and non-contributory scheme.

The applicants of PIP qualify if they need help with more than half of their chores, like bathing, using the toilet, dressing, preparing or eating food, and communicating. PIP is usually granted for a fixed period, after which the beneficiary must apply again if necessary. The period ranges from two to ten years, subject to review at any time.

• Personal independence payment is an allowance to individuals bearing extra costs due to a prolonged illness, disability, or terminal illness.
• It is offered to assist in daily activities such as bathing, dressing, and eating.
• The PIP allowance is awarded in periods after which the individual can file to renew the allowance. The PWD can choose to review the case at any given point during the period to check for discrepancies.
• The claimants are not taxed for this allowance and are allowed other benefits such as lower entertainment tax, discounted public transport, and road tax.

PIP, as a welfare scheme, aims to bridge the gap between disability to work efficiently and the costs of survival. It is a prerogative that is made available for individuals with an ailment physical and/or mental disability that makes moving around and earning a stable income a challenging task.

The UK Department for Work and Pensions (DWP) outsources the assessment process to two private organizations- Independent Assessment Services in the north and south of England and London; and Capita Business Services Ltd in Central England, Northern Ireland, and Wales.

Once the screening process is completed, the reports are submitted to the DWP. They then accept or reject applications based on the credibility of the claimant’s need for additional support.

If the application is accepted and PIP benefits are awarded, the payment commences and can be subject to review at any given time. However, if the application is rejected, the claimant can request a mandatory reconsideration and appeal the decision.

The two components of PIP are daily living and mobility needs. These rates range between 61-93 pounds. The rates can be paid at a standard or enhanced rate, depending on the claimant’s needs. The entitlement of such rates is based on the assessments of their points system.

Personal independence payment benefits apply to claimants if the following applies to them:

• Over 16 years of age. Below the state pension age if they have not received PIP before.
• Difficulty in carrying out daily activities or moving around.
• Disability or a long-term health condition (Mental or physical health).
• The ailment or condition is expected to last 12 months or more from the initial diagnosis.

Apart from the factors mentioned above, individuals with other benefits or sources of income can apply for PIP. For example, if an individual is a beneficiary of Constant Attendance Allowance, they can still be eligible for PIP. They will be allotted slightly lesser funds; however, they can still use the assistance from the scheme.

 Once the individual clarifies the eligibility criteria, they can commence the process to claim PIP. The following are the steps involved in claiming PIP:

Step 1: The call

 The individual can call the 'new claims' telephone line to put forth basic contact details, date of birth, medical history and record, doctor or health worker's contact, national insurance number, and bank details. If the individual cannot do this independently, they can ask for a caretaker to be added to the call or have them call on the applicant’s behalf in their presence.

The individual can also start their claiming process through the post, which usually takes longer than starting the process on a call.

Step 2: Filling and return the form

On the call, The PWD official will inform the individual about the personal independence payment application form they must fill out and send to the address toward the end of the application. It requires details on how the disability or illness affects their daily activity or mobility and the medical history in detail for the same. The form has to be returned or submitted after filling it within a month.

The applicant can attach relevant documents that support the claim, like care plans, prescriptions, discharge summaries, doctors, or other healthcare workers involved in the process.

Step 3: Assessment

 The applicant can be invited to attend a personal independence payment assessment interview with a healthcare professional if more information is required. The interview can be in person, over the phone, or via video call.

The questions in the assessment will relate to the applicant's condition's effect on their daily activities and the treatments they have received or are due to receive.

Step 4: Decision

The external assessment company then submits a report to the DWP and takes the final call on the acceptance or rejection of the claim. If the claim is accepted, the payment is commenced; if not, the applicant can ask for a reconsideration.

Let us understand the concept of PIP with the help of the examples below:

Example #1

Diana met with a road accident in December 2021, after which she lost her ability to walk without support. As a result, she decided to file to claim PIP. In February 2022, she called the helpline number on the official website and received the electronic form in which she filled out her details. She received her first payment in August 2022. The amount was the equivalent of the amount she would have received from the time she applied for the claim.

Example #2

Over 300 million people have asthma worldwide. But unfortunately, it is a condition that, for many, might not look like a condition that needs assistance or excessive care like other diseases or disabilities. In reality, respiratory disorders can adversely affect daily activities. Therefore, anyone with asthma can apply for a DWP claim and be compensated up to £92.40 weekly.

PIP is a tax-free scheme. Therefore, the claim amount is not affected by the income or savings of the individuals, or even their current employment status does not affect the claim of PIP. Furthermore, alongside PIP, the claimant also gets additional benefits such as road tax discounts, discounted public transport, increased housing benefits, etc.

PIP and Carer's Allowance are schemes set to benefit the disabled and less able to derive benefits to tackle their difficulties. However, the essential functions and other criteria are different for these allowances. Let us understand them better through the table below:

This article has been a guide to what is Personal Independence Payment. We explain its eligibility, how to claim it, & examples, and compare it with carers allowance. You may also find some useful articles here -

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