Belfast Telegraph

Spending on PIP benefit rises significan­tly: report

Auditor General reveals claimants were paid £838m in 2019-20

- By Rebecca Black

SPENDING on the personal independen­ce payment (PIP) benefit in Northern Ireland last year was significan­tly more than expected, the Auditor General has found.

The PIP benefit was introduced in the region in 2016 as part of welfare reforms to replace disability living allowance (DLA).

Many have complained about the medical assessment process and length of time applicatio­ns take.

A new report by Northern Ireland’s Auditor General Kieran Donnelly has found claimants were paid a total of £838m in 2019-20, against an estimated £539m. The report notes that 2019-20 was the first year where expenditur­e on PIP in NI exceeded that of DLA.

Similar to PIP, DLA expenditur­e was also higher than expected, at £432m compared to an estimate of £401m.

The report concludes that while it is too early to assess if the implementa­tion of PIP will meet all its objectives, it is likely to cost more than DLA.

By May 2020, there were more than 146,000 PIP claims in payment compared to 78,000 DLA claims. More than a third of PIP claimants receive the highest payment rate, compared to 15% of DLA claimants. The maximum PIP award during 2019-20 was £148.85 per week.

The main disabling condition for claimants awarded PIP is mental illness, affecting approximat­ely 61,000 claimants (42% of claims) in May 2020.

Next is musculoske­letal disease, affecting over 46,000 claimants (33% of claims). This is similar to the position in GB where more than 80% of claims are due to mental illness, musculoske­letal disease, neurologic­al disease or respirator­y illnesses.

While payments to PIP claimants are higher than estimated, the report refers to underspend­s in other areas, due largely to the number of claimant appeals being fewer than expected.

From 2016 to March 2020, the Department for Communitie­s incurred £43m of contract administra­tion costs, compared with an estimate of £111m.

Of the money set aside by the Executive to mitigate against claimants losing out as a result of the move to PIP, the department paid out just 60% (£73m) of the allocated £121m during the four years ending March 31, 2020.

Meanwhile, payments to Capita for completing assessment­s totalled £88m for the four years to March 2020, which was lower than the department’s initial estimate of £140m.

This underspend was partly explained as due in part to the renegotiat­ion of the contract.

The report also notes that, earlier in the contract, Capita missed key targets relating to clearance times and the quality of assessment­s, but adds that, more recently, Capita has improved performanc­e in both these areas. Mr Donnelly said while his report has not evaluated the quality of Capita’s work, it concludes the department has generally managed its contract in line with good practice.

 ??  ?? Kieran Donnelly
Kieran Donnelly

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