Change from Disability Living Allowance (DLA) to Personal Independence Payment (PIP) (from April 2014)

What’s staying the same?

Many aspects of PIP are the same, or similar, to DLA:

  • For example, PIP will have two components, a mobility component and a daily living component (although there will only be two rates of each - see below).
  • It won’t be means-tested or taxed and won’t depend on national insurance contributions.
  • It can be claimed in or out of work. It will be a cash payment. It will be payable to adults who claim before they reach 65 and can continue in payment beyond that age.
  • There will still be ‘special rules’ claims for people who are terminally ill.
  • Motability will still be ‘supported’ under PIP.

What’s changing?

There will only be two rates for both components - a standard rate and an enhanced rate. This is different to DLA which has three rates for the care component.

The Government aim to make the claiming process easier with a shorter claim form, and the ability to claim on-line.

The Government also say that it recognises the importance of DLA as a passport to things such as Warm Home grants and the Blue Badge scheme and that they will take this into account when designing PIP.

The Government intends to introduce a habitual residence test to bring PIP in line with other non-contributory benefits instead of the ordinary residence test which applies to DLA.

 

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T: 01935 404050

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