Cash handouts should remain the ‘foundation’ of disability benefits and claimants should only have to face a ‘light-touch initial assessment’, a government-ordered assessment has suggested despite growing anger at the cost of welfare.

Suggestions from a review led by social security minister Sir Stephen Timms also said that a revamped personal independence payment (Pip) system should not be means tested either.

They were among draft proposals put forward by Sir Stephen’s expert committee today ahead of the report being published later this autumn that will seek to tackle the wasteful culture.

Separate figures published by the Department for Work & Pensions in June showed the number of people in England and Wales claiming personal independence payments had passed four million for the first time, roughly doubling since 2019.

Spending on Pip stood at £16.3 billion in 2019/20, when adjusted for inflation to today’s prices, and had risen to £27.3 billion by 2024/25. It is currently forecast to rise to £41.5 billion by 2030/31.

But despite the eye-watering sums, today’s announcement only recommended that some claimants get services or other ‘non-cash support’ alongside their free money.

It did call for increasing capacity for face-to-face assessments alongside more ‘digital services for Pip claimants’.    

But it added: ‘There will be a light-touch initial assessment to begin understanding a person’s circumstances and direct them to the most appropriate assessment pathway  – this will be as simple as possible to reduce the administrative burden.’

The draft proposals also suggest carers, family, friends ‘and other people who know the person’ should be allowed to provide evidence of their eligibility on their behalf.

Conservative shadow work and pensions secretary Helen Whately said: ‘Welfare should be a safety net for disabled people. Instead, the system is being abused. But the Timms review will do nothing to tackle that abuse or make savings. 

Suggestions from a review led by social security minister Sir Stephen Timms said personal independence payment (Pip) should be mainly cash and not be means tested

Conservative shadow work and pensions secretary Helen Whately said: ‘Welfare should be a safety net for disabled people. Instead, the system is being abused’

‘This review is a wasted opportunity. There’s no plan to move from cash handouts to support. No action on Motability abuse. 

‘No end to benefits for mild anxiety or ADHD. Nothing on why Pip claims for mental health conditions – especially among young people – have surged.

‘Labour’s answer is to make Pip easier to claim, offer more online assessments, hire more people to wave claims through and water down checks further. It’s extraordinarily out of touch.’   

Sir Stephen, who was appointed to lead the review last year in the wake of a Labour backbench rebellion over welfare cuts, said Pip was ‘widely valued’.

But he added it was ‘no longer fit for purpose’, with some disabled people saying it created ‘barriers to participating fully in work, social and community life’.

Charities have welcomed the draft proposals, with the MS Society saying it was ‘clear’ that the Timms review was ‘listening to and learning from disabled people’.

Among the Timms review’s other recommendations are:

• Reducing the number of ‘unnecessary’ benefit reviews for people with lifelong or degenerative conditions;
• Ending the ‘unnecessary stress’ of rules that see Pip payments suspended for people who spend more than 28 consecutive days in hospital;
•  Improving how Pip accounts for ‘fluctuating conditions’;

The expanding welfare budget, including Pip costs, has become a major issue in Westminster, with the Conservatives arguing for cuts to benefits to pay for defence.

The level of individual payments depends on how a person’s condition affects their ability to perform everyday tasks or get around.

An award can range from £30.30 per week to £194.60 per week for the most affected.

Earlier this week a major new study showed support for benefit handouts is nearing an historic low among the British public.

The British Social Attitudes survey found that those in favour of welfare spending are at nearly their lowest level since the question was first asked nearly 30 years ago.

Despite this, there is little support for cutting spending on disabled people who are unable to work, it showed.

This finding suggests it would be ‘politically risky’ for any government to try to save money by cutting disability benefits.