Number of people claiming Pip hits record 4.1 million ahead of Labour welfare reform

The number of people claiming the Personal Independence Payment (Pip) has hit a record high of 4.1 million, official figures show.

The rise marks a two per cent increase between May and July from 4.01 million, and comes ahead of government plans to make sweeping changes to the benefit later this year.

Pip is currently under review by social security minister Stephen Timms, whose final report is expected to be presented to the government in the autumn.

Interim findings from the work earlier this year found it is “not fit for purpose,” indicating plans to make major changes to the benefit.

Early recommendations published this month revealed that this could include more face-to-face assessments, alongside vouchers for specific costs rather than the current lump sum cash payments.

Prime minister Andy Burnham has committed to reducing Britain’s welfare bill, with spending on health benefits estimated to be £77.1 billion in 2025/26, up from £36 billion in 2019/20. However, his team has indicated that the government will not pursue “crude cuts” and instead prioritise measures like employment support.

Over the same period, the number of Pip claimants has doubled from around 2 million in 2019/20 to the record 4.1 million recorded this week.

Sir Stephen’s review of the benefit was announced last year after ministers backed down on proposals to tweak its assessment criteria to make it effectively harder to claim.

Around £5bn was set to be slashed welfare spending through the plans, prompting over 100 Labour MPs to threaten to rebel against the government on the measures.

The Department for Work and Pensions (DWP) data also shows that the number of claims for the health-related element of universal credit also rose to 3.6 million in June.

This is up 23 per cent, or 680,000, in the year. However, the department adds that 66 per cent of this increase has arisen from the winding down of legacy benefits which have been replaced by universal credit.

Although changes to Pip were withdrawn in July, major changes to UC health were still pushed through by the government. This halved the rate of the element for new claimants, while those with existing claims or the most severe conditions still receive the previous rate.