PIP 20m rule will cost the UK Government millions more than it's predicted to save
Significant extra costs to the Government
When people with MS don’t get the support they need, this harms people’s health and makes it harder to work. This leads to significant extra costs to the Government.
The UK Government will save £83.3m over three years as a result of cutting PIP support from people with MS. But this will be outweighed by £92.7m in knock-on costs to UK
The extra costs of the PIP 20m rule
The Department for Work and Pensions (DWP) said that the 20m rule would not have “any significant additional cost implications” for other government departments.
But our research predicts that between 2020 and 2023, as a result of people with MS losing support, the Government will spend:
- £22.3m on increased use of GP, A&E, and counselling services
- £57.4m on lost tax revenue from people with MS and their carers having to reduce hours or leave work
- £11.4m on extra benefit payments (Employment and Support Allowance and Carer’s Allowance) for people who left work
- £1.7m on processing extra appeals and reassessments.
Scrap the PIP 20m rule
This year the UK Government is reviewing their spending for the next few years. This gives us the opportunity to tell them the 20m rule makes no sense and should be scrapped.
Our Director of External Affairs, Genevieve Edwards, said: “We’ve long known about the enormous harm caused when PIP takes vital support away from people with MS. Our new report shows for the first time this harm is rebounding on the Government: the knock-on costs from people losing support are greater than the original cuts. So the Government is squandering millions from the public purse while derailing lives.
“Scrapping this senseless rule would stop this unnecessary waste and help people with MS finally get the support they need. MS can be painful and exhausting, it shouldn’t be made harder by a welfare system that doesn’t make sense.”