Pip changes to hit poor areas hardest

LIMITING access to financial support for people with debilitating conditions will cause the most economic harm in poorer communities, with the worst-affected constituencies represented by Labour MPs, a study has found.

- JONATHAN BUNN

A seat-by-seat analysis of the potential consequences in England of the UK Government's plan to tighten the eligibility criteria for the personal independence payment (Pip) showed businesses in some places face collective annual losses of more than £20m.

The study, which examined the drop in spending locally as a result of fewer Pip claimants being eligible under the changes, also found that the most deprived areas stand to lose nearly three times more than the wealthiest.

The level of financial support provided is based on how high claimants score based on their level of difficulty performing day-to-day activities.

Changes to Pip assessments are part of a push to reduce the welfare bill and get more people into employment.