How will the recently announced PIP reforms impact councils and the advice, support, and guidance that they provide their citizens?
by Guy Giles, Managing Director, Infoshare+
Last week, the UK Government announced its plans to reform health-related benefits in an effort to reduce the welfare bill by £5bn a year by 2030.
Over 4 million people – one in 10 of the working-age population – claim at least one type of health and disability benefit – a figure which is set to increase and cost up to £34.1bn a year by 2030. According to The Resolution Foundation, the proposed changes will leave up to 1.2m people between £4,200 and £6,300 a year worse off.
What I’ll cover in this article:
What are the PIP reforms that are being proposed?
What might the PIP reforms mean for local authorities?
What will local authorities need to consider?
What can councils do to support citizens?
What are the PIP reforms that are being proposed?
Most of the changes surround the Personal Independence Payment (PIP), a key part of the UK welfare system. It is paid whether people are working or not and is to cover the costs associated with living with disabilities or long-term health conditions.
Currently, a score of 8 points in total across all 10 areas of daily living activities is needed to be eligible for PIP. However, the Government is adding the need to meet a minimum of 4 points on one PIP daily living activity (along with the 8 points in total) to receive the daily living element of the benefit. This means that some people currently receiving PIP will lose their entitlement when they are reassessed. This will also have an impact on carers who need to be caring for someone on a disability benefit to qualify for a Carer’s Allowance.
Another proposed change that the Government are consulting on, is raising the age at which people can claim PIP to 22, up from 18.
The Government will also be removing the Work Capability Assessment (WCA). This means financial support for health and disability benefits will be assessed using the PIP evaluation.
These changes are expected to come into effect from April 2026.
What might the PIP reforms mean for local authorities?
Increased demand for welfare advice
In the wake of news about the reforms, people who may be affected will likely be feeling concerned about their future and what the impact will be. Confusion about eligibility, and concerns about financial hardship may lead to an increased demand for welfare advice and support services. As we move towards the reforms coming into effect, local authorities may encounter increased demand for support services as some individuals lose benefits or face reduced income. This could lead to heightened pressure on housing services, social care, and emergency assistance programs. Authorities might also need to address rising poverty levels and associated social issues within their communities.
Funding challenges
Councils often rely on government funding for welfare services. If changes to the benefits system are associated with cuts to this funding or a shift in how resources are allocated, councils could face budgetary pressures, affecting the support they can offer.
Reassessment processes
The reassessment process can often be a source of anxiety and confusion. It often requires significant documentation and a clear understanding of the individual’s needs. Councils may need to enhance their support services to assist recipients in gathering necessary evidence and completing applications confidently.
Appeals and advocacy
If people are unhappy with their PIP decisions, councils may find themselves needing to provide support for appeals. This may include guidance on how to submit an appeal effectively, access to legal resources, or connections with advocacy groups specialising in disability rights.
What will local authorities need to consider?
Impact on vulnerable groups
PIP often serves individuals who are already marginalised. Changes that reduce PIP support can exacerbate health inequalities. Councils must prioritise outreach to vulnerable groups, ensuring they have access to tailored support.
Disproportionate impact on carers
Many carers depend on PIP to support their loved ones. If PIP amounts are reduced or recipients lose their benefits, carers might experience increased financial strain, affecting their capacity to provide care. Councils may need to explore additional resources, like financial planning assistance, to help carers adapt to these changes.
What can councils do to support citizens?
Get ahead
Local councils will need to prepare for an influx of citizens seeking advice on reapplying or appealing decisions. A proactive approach, particularly in supporting vulnerable groups like carers, will be essential. Providing a digital front door where people can get the information they need, can help concerned citizens feel supported without overwhelming staff.
Share information with citizens
The rapid change to PIP eligibility will need clear and timely communication from councils. This includes updating community resources, websites, and social media platforms to inform citizens about changes, deadlines, and available support services. Effective outreach is necessary to ensure that those affected remain informed and have access to assistance.
Collaboration with community organisations
Local councils may want to collaborate with community organisations to enhance their support frameworks during this transition.
Update their welfare advice services
Now is a great opportunity for local authorities to assess the welfare advice, support and guidance that they offer their constituents. Are there more efficient, cost-effective ways of delivering these services? What will need to be updated in light of the PIP changes, and how can they get ahead to ensure they’re effectively advising citizens as soon as they come into effect?
Changes to the PIP benefit can have far-reaching effects on individuals, particularly those who rely on it for daily living. Councils must be proactive in addressing these changes, ensuring that their welfare advice services are equipped to handle the complexities involved. Supporting both PIP recipients and their carers will be essential in mitigating the risks associated with these changes, as well as fostering a more inclusive and supportive community for all citizens.
We provide a range digital front door products to helps local authorities provide accessible, advice, support and guidance. BetterOff is our digital assessment platform that helps people to self-serve and apply online for both local and national benefits. With BetterOff, councils can ensure their citizens are receiving what they’re entitled to and provide proactive solution for citizens concerned about their financial future considering the upcoming welfare reforms.
Get in touch if you would like to learn more about any of our digital front door products.