So I've been giving this alot of thought with how much attention this has been getting of the past few weeks & months.
The rationale for wanting change seems to be wanting to get more people into work.
My idea is PIP could be improved to encourage this by becoming a means tested benefit, just not in the way your probably expecting.
Currently a higher rate daily living claiment receives £5,740.80 a year.
To encourage working, for each £1 a PIP claiment earnt over their tax-free Personal Allowance of £12,570 they lose £0.15 of their pip entitlement but gain an additional £1 of their tax free allowance.
Assuming basic tax payer at 20% this would leave claimants' better off.
When a claiment was earning £50,842 and
had lost all of their direct pip payments it would amount to an take home of £7,654.40 extra due to the increased tax free allowance making the person £1,914 better off.
The cherrys on top are:
- at no point would a claimant be worse off
- reliance on money being payed by the government is reduced
- every person would be significantly more economically active
- doesn't penilse those unable to work
Now this might cost more than it saves if most PIP claimants are working, but apparently that's not the case according to all the rhetoric.
What do people think of this idea even if it's a pipe dream?
