The number of people claiming Disability Living Allowance (DLA) and Personal Independence Payment (PIP) in the UK has been rising significantly over the past decade.
This increase has raised questions from economists, MPs, and charities about what’s driving the trend, and whether government policy changes are part of the reason.
A major new analysis by the Institute for Fiscal Studies (IFS) suggests that cuts to other parts of the welfare system have had unintended consequences, pushing more people into health‑related benefits such as PIP.
The think tank estimates that these indirect effects may have increased disability benefit spending by around £900 million between 2010 and 2019, a substantial sum.
Below, we unpack the issues in clear UK English, include extra insights from recent policy debates, and present tables and summaries to help you understand the full picture.
How Do Welfare Cuts Affect PIP Claims?
Even when changes are not directly related to disability, they can influence PIP claims. Key drivers include:
- Cuts to housing benefit and the overall benefit cap, reducing household financial support and pushing some to claim disability benefits.
- Raising the state pension age for women altered claimant eligibility and income flows.
- Stricter job-seeking rules for single parents, prompting some to turn to health-related benefits instead.
In essence, when support is reduced in one area, people may shift to PIP and other disability benefits. These are known as spillover effects, meaning intended savings from cuts are often partially offset by rising costs elsewhere.
Are Health Trends Also Driving the Rise?
Yes. Rising levels of mental health issues, including anxiety and depression, are a major factor in increased disability claims. Many new PIP claims now cite mental health conditions rather than purely physical disabilities.
The combination of declining health, financial pressure, and social stress has created a climate where more people are eligible for, or reliant on, disability benefits than in previous decades.
What Are the Government’s Proposed Reforms to PIP and Disability Benefits?
Recent government proposals aim to:
- Adjust eligibility for the daily living component of PIP.
- Reduce or freeze the health element of Universal Credit for new claimants.
While the government argues these reforms aim to make welfare more sustainable, critics warn that they could leave disabled people worse off, particularly as households already face rising costs for basic living.
Many claimants also rely on wider DWP support payments, including Universal Credit cost-of-living payments, to help with household finances in tough economic times.
Wider Pressures on Disabled Households
Disabled households often face higher essential costs than non-disabled households, including heating, transport, mobility aids, and home adaptations.
Additional DWP support schemes, such as the £10 Christmas Bonus payment, also form part of the broader welfare environment that affects claimants across different benefit types, including PIP recipients.
These extra costs can exceed £1,000 per month. Any reduction in PIP or related support risks worsening financial inequality and health outcomes for already vulnerable groups.
PIP and Welfare in the UK
| Statistic | Trend/Value | Notes |
|---|---|---|
| Rise in disability benefit spending due to welfare cuts | ~£900m (2010–19) | Spillover effects from cuts in other areas |
| Increase in health-related claimants since the pandemic | +45% | Working-age claimants without work requirements |
| Extra monthly costs for disabled households | ~£1,095 | Includes essential living and care costs |
| Estimated people affected by PIP reform changes | ~800,000 | Could lose significant income annually |
What does this mean for Disabled People and Claimants?
- Cuts in one part of the welfare system can push people into claiming other benefits, such as PIP.
- Health, particularly mental health conditions, is now a major factor in why people need disability benefits.
- Policy reforms may reduce payments or tighten eligibility, affecting hundreds of thousands of claimants.
- Disabled households face higher ongoing costs than many people realise, and changes to benefits matter a lot in real terms.
Key Takeaways
- PIP claims have risen partly due to cuts in other welfare benefits.
- Health trends, especially mental health issues, are significant factors.
- Government reforms could reduce entitlements or tighten eligibility, impacting many claimants.
- Disabled households already face higher essential costs, which increases vulnerability.
- Public sentiment reflects concern over the fairness and clarity of welfare changes.
Understanding the rising PIP claims requires looking beyond numbers to the social, economic, and health pressures affecting disabled people today.
