A report by money saving expert Martin Lewis’ charity warns that Labour’s PIP reforms will have a “catastrophic impact” on people’s finances and mental health, and will drive people out of the workplace.
The Money and Mental Health Policy Institute carried out in-depth interviews with 227 with people with a mental health condition who currently receive PIP. The research shows that:
- A significant number of people with mental health problems expect to lose PIP under the new reforms — and would face a terrifying income shock as a result. 24% of people surveyed say that they will not be eligible for PIP under the new reforms, with another 39% not sure if they’ll be affected. Around a third of the group who expect to lose out receive the ‘enhanced’ rate of PIP due to having high support needs, and face an annual income drop of over £5,750 if they lose this benefit. The rest of this group, who receive the ‘standard’ rate of PIP, will face a still significant income cut of over £3,850 per year.
- Losing PIP would force many people with mental health problems to cut or stop spending on critical support they need to support their wellbeing. 82% of respondents who use PIP to pay for counselling, therapy, personal care or support needs — and who are set to lose this benefit — say they will significantly reduce or stop spending on this altogether if they lose PIP. A research participant said: “I feel incredibly distressed at the prospect of losing additional money that goes towards therapy. The amount I get is not covering all the additional costs that come with mental health difficulties as it is.”
- Losing PIP would also have a huge impact on people’s ability to keep up with day-to-day bills. 85% of survey respondents who use PIP to pay for groceries say they will need to significantly cut or stop spending on this, as do 76% who use PIP to pay for essential household bills.
- The cumulative impact of these changes would be devastating for people’s mental health. A staggering 97% of respondents say the PIP changes would have a “significant negative impact” on their mental health. Some respondents reported that the prospect of losing PIP has resulted in them having panic attacks or feeling suicidal.
- A significant number of people also say that these reforms would force them out of work, or to reduce their hours. Around one in five survey respondents who currently receive PIP are in employment. But 63% of that group say they would need to reduce or give up work if they lost their PIP entitlement. For some, this is due to the impact it would have on their mental health, while others said they would not be able to afford the transport costs of going to work. Another respondent said: “PIP pays for the private therapy… which keeps my mental health at a functioning level most of the time. Without these I doubt I could even manage the permitted work hours (14 hours per week) that I do.”
This report and the Citizens Advice report “Pathways to Poverty” are both compiled by highly respected, non-political organisations that cannot be disregarded as “just another left-wing think tank”. It's definitely one that's worth sharing with your MP.
You can download “Lead shoes instead of a life ring” here.
