PIP: controversial voucher allowance update as DWP reforms threaten UK support claim payments for millions

• Controversial plans to replace PIP cash with vouchers have been scrapped by the UK Government
• The move follows widespread backlash from disability rights groups and the public
• Proposed voucher schemes included pre-paid cards, one-off grants, and reimbursements
• Labour says disabled people should retain choice and control over their support
• Despite the U-turn, major PIP reforms are still planned — with potential financial losses for many

The UK Government has scrapped controversial plans to replace Personal Independence Payment (PIP) cash benefits with vouchers or non-cash alternatives.

The proposal was widely condemned as stripping disabled people of autonomy and dignity, but Labour confirmed a U-turn in April, following fierce opposition from disability rights groups and the wider public.

The original proposal included pre-paid cards for specific disability-related items, one-off grants for home modifications or equipment, and reimbursement schemes requiring submitted receipts.

But these ideas sparked a backlash, and critics argued they would restrict personal freedom and add unnecessary obstacles for disabled people already navigating a complex system.

Work and Pensions Secretary Liz Kendall confirmed the reversal, saying: “This Government will not bring in the Tory proposals for vouchers — because disabled people should have choice and control over their lives.”

But while the voucher scheme is off the table, sweeping reforms to PIP are still moving ahead — and they could leave up to 1.2 million people worse off by 2029, with some losing as much as £6,300 a year.

What’s changing?

Tighter eligibility from 2026: New claimants must demonstrate significant impact in one specific area of daily life, potentially excluding those with fluctuating or multiple moderate conditions.

Scrapping the WCA by 2028: PIP assessments will become the single gateway for extra financial support — a move aimed at simplification but one that risks missing nuances in people’s ability to work.

More face-to-face assessments: These are intended to improve accuracy but may increase stress and wait times for disabled people, particularly those with mental health conditions or mobility issues.

Fewer reassessments for the severely disabled: This long-awaited change has been welcomed, offering some relief to those living with permanent, life-limiting conditions.

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