Excluding people with anxiety, ADHD or autism from Personal Independence Payments would not produce major financial savings and could make it harder for some people to work or take part in society, the Resolution Foundation has warned.
The thinktank described proposals to make particular mental health and neurodevelopmental conditions ineligible for Pip as “crude changes” aimed at savings targets it considers unrealistic. It said reform should instead focus on how the benefit is assessed and targeted.
Why the debate is growing
The number of Pip claimants has risen rapidly, particularly among young people. The Resolution Foundation said much of the increase has been linked to claims involving mental health conditions, ADHD and autism.
Spending on Pip in England and Wales has increased by 183% in real terms since the benefit was introduced. The bill is expected to reach £28bn this year and £34bn by the end of the decade, based on official forecasts.
Previous attempts by the Labour administration under Keir Starmer to secure £5bn in Pip savings collapsed last year after opposition from backbench MPs. Andy Burnham has said renewed reform efforts would not involve “crude cuts”. Officials are also understood to be considering whether people under 25 should be excluded from the system, although that remains a proposal under consideration.
A condition-based system could miss individual needs
The Resolution Foundation said linking eligibility to particular diagnoses would be simplistic and impractical. Most claimants reported having multiple conditions, it said, often involving a combination of physical, mental and behavioural conditions.
The Department for Work and Pensions says Pip is awarded through a functional assessment of how a condition affects a person’s day-to-day needs. Kemi Badenoch has argued that people with so-called “mild” conditions that are not disabling or likely to create higher daily living costs should not receive Pip.
The disagreement highlights the difference between judging support by diagnosis and judging it by a person’s functional needs. The fact sheet does not establish how any proposed exclusion would operate in practice or how many people it would affect.
What the foundation proposes
The Resolution Foundation said Pip was “failing on several fronts” and called for a major overhaul to contain costs and rebuild public trust. It estimated that better-targeted support could save about £4.4bn a year.
One option identified by the foundation would remove cash support from an estimated one in six working-age Pip claimants—about 670,000 people—who report having no extra costs as a result of their disability.
At the same time, the foundation urged caution because Pip has helped large numbers of disabled and ill people participate in work, caring, training or volunteering that they would otherwise be unable to do. It said a reformed system should continue cash awards for ongoing additional costs while also focusing on participation in society.
What is known—and what is not
The foundation’s warning is an assessment of the likely effects of proposed policy changes, not evidence from a completed policy trial. Its estimate of £4.4bn in annual savings depends on support being better targeted, while the 670,000 figure is an estimate.
The forecast spending figures are also expectations rather than confirmed future totals. The fact sheet does not provide detailed evidence quantifying how exclusions would affect employment, participation or the wider cost of the benefits system.
The Department for Work and Pensions said the Timms Review had made clear that Pip was no longer fit for purpose and that the review’s final recommendations would provide the basis for sustainable reform.
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