PIP Spending Crisis: Mental Health Claims Triple Since Pandemic
PIP Mental Health Claims Triple Since Pandemic

PIP Spending Crisis: Mental Health Claims Triple Since Pandemic

New Department for Work and Pensions figures have revealed a dramatic surge in Personal Independence Payment spending, with claims for anxiety and depression nearly tripling since the Covid-19 pandemic began. The escalating costs have prompted urgent calls for welfare system reform as the total annual bill is projected to reach a staggering £44.9 billion by 2030.

Soaring Mental Health Claims

Spending on PIP for claimants with anxiety and depression has skyrocketed from £1.6 billion in the 2019/20 financial year to £4.3 billion currently. New claims for these specific mental health conditions are now being processed at an alarming rate of 250 every single day, highlighting a significant shift in benefit dependency patterns since the pandemic.

Overall Application Surge

The total volume of new PIP applications across all conditions has surged to over 1,000 per day, contributing to a dramatic increase in overall benefit costs. According to the newly released DWP figures, pre-pandemic benefit costs stood at £13.7 billion, but have now risen to nearly £26 billion in the 2024/25 financial year.

Neurodiverse Condition Increases

Claims for neurodiverse conditions have seen some of the most dramatic expenditure increases:

  • Autism payments have jumped from £565 million to £1.72 billion in just five years
  • ADHD/ADD claims have risen from £137 million before Covid to £560 million

Physical Ailment Costs

Physical health conditions remain major cost drivers within the PIP system:

  • Arthritis payments have increased from £1.68 billion to £3.02 billion
  • Asthma-related claims have doubled to nearly £167 million
  • Back pain payouts have risen from £869 million to £1.63 billion

Political Response and Criticism

Shadow Work and Pensions Secretary Helen Whately has launched a scathing critique of the current system, claiming it has "completely lost its bearings" by supporting what she describes as "low-level" conditions. She argues that the benefit was originally intended only for the most severely disabled individuals but has been stretched far beyond its original purpose.

Ms Whately outlined Conservative proposals that would:

  1. Restore face-to-face assessments
  2. Fix the broken sick note system
  3. Tighten eligibility for low-level mental health claims
  4. Clamp down on system abuse

Labour's Reform Challenges

Last year, Labour was forced to abandon planned £4.5 billion reforms to PIP eligibility following a backbench revolt. However, the party now says it intends to save £1.9 billion by the end of the decade through increased face-to-face assessments for both PIP and Universal Credit's sickness top-up, known as LCWRA (limited capability for work and work-related activity).

Government Initiatives

The government maintains that spending on PIP has slowed this year and has launched several initiatives to address the growing crisis:

  • The Timms Review aims to ensure benefit sustainability for future generations
  • The Connect to Work programme targets helping 300,000 disabled people return to employment
  • Reforms focus on tightening the bridge between disability benefits and active employment support

As the welfare system faces unprecedented pressure, both major political parties acknowledge the urgent need for sustainable reform while balancing support for genuinely disabled claimants with fiscal responsibility.