Disability or Illness Raises Financial Hardship Risk
If you have a long-term health condition or you’re a disabled person in the UK, you might be able to claim a benefit called personal independence payment (Pip). As the name suggests, Pip is designed to help with the additional costs of disability – regardless of employment status.
But the government recently announced changes to the payment , which will make it harder for people to access support.
As a disabled person , I know that it costs more to live with disability or illness. It has been calculated that disabled households need an extra £1,010 per month to maintain the same standard of living as non-disabled households. This gap arises from things like transport costs (because of inaccessible public transport), the need for expensive mobility aids, and water, electric and gas costs at home.
The World Health Organization recommends a minimum indoor temperature of 18°C for healthy people and 20°C for those with chronic conditions. Yet, with soaring energy prices , many disabled people are forced to choose between heating their homes and other disability-related necessities.
Despite these realities, the maximum annual Pip payment is £9,747.40 , well below the additional £12,120 that disabled households typically need annually. Only those qualifying for the highest level of support receive this amount. Most get considerably less.
So, what is the government’s justification for tightening eligibility? Together with changes to universal credit , it claims it will save £5 billion a year by the end of 2030 and get more people, including sick and disabled people, into work. But will it?
Government figures from March 2024 show that 24% of people in the UK aged 16 to 64 are disabled. Within this group, the employment rate is 54.2%. For comparison, non-disabled adults of working age have an employment rate of 82%. Even when disabled people are employed, the disability pay gap is 12.7%. This gap reaches 27.9% for autistic workers and 26.9% for those with epilepsy.
The same figures also show that 42.6% of disabled people are economically inactive. This is sometimes portrayed as people who are capable of working but choose not to. But this does not align with the facts.
The latest figures on Pip claims show that last year the rate of fraud was so low that the Department for Work and Pensions recorded it as 0%.
Anyone like me, who has experienced the lengthy and complicated Pip application process, will find these figures unsurprising. Cutting access to Pip will not push this group into employment but will plunge them deeper into financial hardship.
The Resolution Foundation think tank estimates that up to 1.2 million disabled people could lose between £4,200 and £6,300 per year by 2029-30 due to these changes.
The government is particularly focused on claimants with mental health conditions, especially younger people. As such, it is crucial to acknowledge the dire state of mental health services in the UK.
Eight times as many people wait more than 18 months for mental health treatment compared to physical healthcare.
This crisis is compounded by broader challenges facing young people, who were disproportionately affected by COVID lockdowns. Three in four university students and recent graduates reported lower levels of wellbeing in September 2021 compared to pre-pandemic levels. These same young people face a competitive labour market, alongside soaring rent, energy and food costs.
Nevertheless, supporting disabled people and the long-term sick to access employment is a worthy goal. Government figures suggest 5.6% of disabled people are unemployed. Many of these people want to work. This is also true of many in the economically inactive group who simply cannot.
The record £1 billion employment support measures announced in chancellor Rachel Reeves’ spring statement to help the disabled and long-term sick into work is obviously welcome.
But we have to be realistic. Previous government schemes resulted in fewer than one in five people getting work. This highlights the systemic barriers that disabled people face in work beyond their agency. The new approach raises concerns that people might be pressured into unsuitable jobs simply to reduce unemployment figures.
Even when disabled people find employment, they continue to face discrimination and workplace biases. The legal system places the burden on individuals to challenge unfair treatment and the disability wage gap just exacerbates inequalities.
While remote work has been a game-changer for many disabled workers, the previous government pressured its own workforce of civil servants back into offices. Many business leaders continue to advocate for the same.
Cutting Pip will not necessarily reduce the welfare bill. But it will drive more disabled people into poverty. Those with savings will exhaust them, ultimately qualifying for even more means-tested government assistance.
Others will be priced out of work entirely. Many may end up needing more support from public services like the NHS, as their mental and physical health deteriorates. This means the claim of saving £5 billion a year is also likely flawed.
So, what needs to change? Here are five ideas.
If these failures are not addressed, the consequences will be catastrophic. The government’s approach is making life harder, not easier, for disabled people. It is time for real action, not rhetoric and infantilising talk of “pocket money” . Disabled people deserve better. We all do.
William E. Donald does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.