The importance of PIP for disabled people has never been clearer

Personal independence payment (PIP) has been in the spotlight recently. This benefit is designed to help people with long-term health conditions or disabilities cover the extra costs of daily life. As of 31 January 2025, there were 3.7 million PIP claimants in England and Wales, according to government data.

Proposed changes to tighten PIP eligibility sparked strong opposition from campaigners, charities and MPs, including many from the governing party. In response, ministers have promised that no changes will be made without a full public consultation, and that current claimants will not lose their support.

As a formal review gets underway, data highlights why PIP is vital in supporting disabled people, especially as they face rising living costs and increasing levels of debt.

Disabled people face higher financial strain

Debt advice provider Money Wellness supports thousands of people each year, including many who are disabled and under growing financial pressure.

Their data shows between February 2023 and January 2024:

• 10% of customers disclosed a physical disability, up from 7% at the start of 2023.
• Of those, 72% had other vulnerabilities, 55% reported mental health concerns and 32% had another illness.

Disabled customers often face steeper financial challenges:

• 80% are in priority arrears, debts that can have serious consequences such as losing your home, having essential services disconnected or facing legal action (vs 74% of non-disabled customers).
• 60% are referred for food vouchers (vs 47%).
• Monthly income is lower at £1,687 (vs £1,733).
• Monthly expenditure is slightly higher at £1,961 (vs £1,950), with extra money required for care and health costs.

Disabled customers are more likely to fall behind on:

• Utilities (51% vs 46%).
• Council tax (39% vs 35%).
• Repaying benefit/tax credit overpayments (30% vs 24%).

Money Wellness’ data also shows that disabled people are more likely to end up with a debt relief order (DRO). Only people with very little disposable income and no real assets to speak of are eligible for a DRO. Among Money Wellness’ customers, 67% who disclose a disability end up with a DRO, compared to 51% who don’t. This may point to the disproportionate financial hardship faced by disabled people.

• DWP taking cash back from benefit claimants it overpaid is ‘just like carer’s allowance scandal’
• MPs vote to make Labour’s ‘reckless’ benefits bill into law – despite disabled people’s fears. Now what?
• The simple reason Nigel Farage has seemingly had a change of heart on benefits

Why PIP matters

To gain deeper insight into the financial challenges faced by disabled people, Money Wellness spoke with two organisations that support people with PIP claims – Turn2Us and Fightback4Justice.

As Anna Stevenson, benefits expert at Turn2Us, explained: “Many of the people who come to us for support describe struggling to cover essential expenses, such as specialist equipment, accessible transport, home adaptations and higher utility bills. These extra costs can quickly add up, leaving people with little or nothing left over each month, and making it much harder to manage unexpected expenses or emergencies.”

Research by Scope backs this up, showing disabled households face average extra costs of £975 per month, even after disability benefits such as PIP are considered. For roughly one in five disabled people these costs rise to more than £1,000 a month.

“Others have described going without essentials or relying on credit to get by, which can lead to a cycle of debt and anxiety. In summary, both our experience at Turn2Us and national statistics show that people with physical disabilities face significant extra costs and financial challenges, which can have a profound impact on their wellbeing and quality of life,” said Stevenson.

As the cost of living continues to rise, Turn2Us is facing growing demand for support, with more people than ever turning to them for help.

“The cost of living crisis has led to a surge in demand for our services, stretching our resources and making it challenging to meet everyone’s needs. We are constantly seeking new funding sources and working to expand our digital tools and outreach,” Stevenson added.

The domino effect of losing PIP

When someone loses PIP, the consequences can be severe, often leading to immediate financial strain, missed essentials and rising anxiety.

Michelle Cardno, a lawyer and founder of Fightback4Justice, warned about the broader impact of losing PIP. She explained that when the benefit is stopped, carer’s allowance can also end, which may affect other forms of support, such as help with rent.

“Things start having a knock-on effect…,” she said. “We find a lot of people lose one and then sometimes lose the other as well.”

Cardno also pointed out that people can end up paying out of pocket for essential equipment such as wheelchairs, either because they don’t know they’re entitled to a free one, or because the standard equipment doesn’t meet their needs.

Human stories behind the statistics

Behind every statistic about disability and debt is a person simply trying to get by.

Fightback4Justice shared the story of a man undergoing chemotherapy who came close to losing his Motability car due to a missed paperwork deadline. People awarded the enhanced rate of the mobility component of PIP, with at least 12 months remaining on their award, are eligible for the Motability Scheme, which allows them to lease a car, powered wheelchair or scooter. After being re-diagnosed with cancer, the man received his PIP review form just two weeks before it was due. Overwhelmed by treatment and the short deadline, he wasn’t able to return it in time.

“We pulled out all the stops… and managed to stop the collection an hour from it being taken.”

Without the car, he would have struggled with lengthy trips on public transport for his treatment.

The power of digital support

While some cases require urgent, hands-on help, others just need clear guidance and the confidence to navigate the system.

Earlier this year, Turn2Us supported Mark, a single dad from the Midlands with a long-term health condition. As his ability to work declined, he worried about supporting his young son. He’d heard of PIP but was worried about the paperwork and “getting it wrong”.

After using the Turn2Us’s digital tools, including their PIP Helper, Mark completed his application with greater confidence, ensuring he included detailed, relevant information. A few months later, Mark received a successful PIP award. He told Turn2Us that without their tools, he would have felt “lost in the system” and might never have applied.

“Mark’s story is just one example of how digital tools can help people to navigate a daunting process and access the support they’re entitled to, especially when the system feels overwhelming and confusing,” said Anna Stevenson.

As the cost of living continues to rise, the importance of PIP, and the support systems around it, has never been clearer. While proposed reforms remain under review, the experiences of disabled people confirm how vital this benefit is in helping them stay afloat, avoid debt and live with dignity. Any future changes must take that reality into account.

Gabrielle Pickard Whitehead is the lead financial content writer at Money Wellness.

Do you have a story to tell or opinions to share about this? Get in touch and tell us more.