PIP reform that better matches payments to costs and needs could save money while working better for claimants 15 October 2026 One-in-six (16 per cent) working-age PIP recipients report no additional costs linked to their disability, suggesting that the current system is failing to effectively match support to those it was designed to help. Reform that is more responsive to claimants’ needs could also produce savings, the Resolution Foundation said today (Thursday). The report Hard truths draws on an exclusive new survey of over 2,500 people receiving PIP to show how to fix the problems with the PIP system so that the benefit better meets its core aim of supporting those who have additional costs linked to their disability to live fuller and more active lives. The survey finds that recipients overwhelmingly agree PIP enables them to undertake activities that they could not do without. More than four-in-five (85 per cent) PIP recipients aged 16-64-years said they can participate in at least one economically valuable or wellbeing-enhancing activity thanks to their award. Among 16-24-year-olds this rises to 96 per cent of recipients, indicating that young people find support particularly enabling. But despite its importance, the system is failing on multiple fronts: since 2013, 16 per cent of all disallowed decisions have eventually been overturned in favour of the claimant, while the overall working-age disability benefit budget in England and Wales is growing at an unsustainable rate, from £14.4 billion in 2019 to a projected £34.5 billion by 2030-31 (all in current prices). Previous attempts at PIP reform have often proposed crude changes to hit unrealistic fiscal targets. The report shows that proposals to exclude particular conditions are unlikely to deliver significant savings, with multiple conditions more common than not. Meanwhile less than 1 per cent of PIP recipients report only ADHD, anxiety, or autism. However, savings can be made while honouring the purpose of PIP. One-in-six (16 per cent) working-age PIP recipients report no additional costs and so should not receive cash support. A system that was better able to identify claimants without additional costs could save up to £4.4 billion a year by removing cash payments from around 670,000 claimants (based on the 2029-30 caseload). Younger PIP claimants would be particularly affected by any move to target support more effectively, with one-in-five (21 per cent) of PIP’s current 16-24-year-old caseload reporting little limitation and no additional costs from their disability. The report recommends a wider set of changes to help achieve this and to make PIP work better for claimants: The PIP assessment should still be based on function but also ask claimants directly about their extra costs and what support would help them live more active lives. A new system should provide eligible claimants with a lower ongoing cash award, but claimants could further be awarded a non-recurring ‘capital award’ to help cover one-time costs such as buying aids or making adaptations at home. A new ‘participation award’ should be introduced to help recipients build capacity to participate more fully in society. This will work best as a budget for local areas to commission, provide or refer recipients to relevant services. This could continue to be offered to some claimants as their conditions improve and cash support is no longer necessary, helping to mitigate PIP’s ‘improvement trap’. DWP should introduce more frequent but lower-stakes check-ins with recipients to better capture the reality of fluctuating conditions and reduce the stress created by infrequent but high-stakes assessments. Lindsay Judge, Research Director the Resolution Foundation, said: “PIP is a vital benefit for disabled people that enables them to participate in society and live fuller and more active lives. But the current system is failing on several fronts – claimants don’t trust it, awards don’t fully reflect the nature of disability today, and spending is rising unsustainably. “As well as continuing to provide cash awards to help with ongoing additional costs, a reformed PIP system should focus on supporting disabled people to participate in society. A system more attuned to people’s needs would also mean that around one-in-six current PIP recipients who don’t face significant limitations or additional costs because of their disability would no longer qualify for cash support. “There is no perfect system of disability support, but one that better reflects the fact that people often have multiple and fluctuating conditions must target greater support and engagement where it’s needed, and avoid waste where it’s not.”
