There will also be a six month qualifying period and no automatic entitlement for those suffering particular impairments or health conditions.
However the replacement to Disability Living Allowance (DLA) will remain non-means tested and not taxable.
The government confirmed some of the details regarding the formation of PIP in its response to the consultation around reform of DLA.
In the reply the Department for Work and Pensions (DWP) confirmed that PIP can be claimed by disabled people whether they work or not.
There will be two components of Personal Independence Payment; a daily living component and a mobility component, each with a standard and enhanced rate.
And people suffering certain impairments or health conditions will not have an automatic entitlement to the benefit, meaning everyone will have to undergo assessment.
The government said it is not right to judge people purely on the type of health condition or impairment they may have, and it is committed to a more individualised approach to assessing an individual's claim.
It also explained the necessity for extending the qualifying period "to bring the definition of a long-term disability in line with the Equality Act 2010 and align it more closely with the qualifying rules for Attendance Allowance."
As part of welfare reform the DWP is attempting to reduce projected working-age expenditure by 20% in 2015/16.
This means reducing working-age expenditure to 2009/10 levels in real terms - £11.8 billion.
DLA is claimed by 3.2 million people at an annual cost of £12bn.
Currently more than 2 million people get the benefit indefinitely which, the government said, means there is no way of knowing if their condition has changed or if they actually need more help and support.
Maria Miller MP, Minister for Disabled People, explained: "Personal Independence Payment will be a more dynamic benefit that acknowledges that people's conditions change over time and that our understanding of how disability affects people changes too.
"So rather than having 70% of people on indefinite awards, as is currently the case with DLA, we will introduce a new fairer, more transparent and objective assessment, and, in most cases, introduce fixed term awards.
"In doing so, we need to take account of the full range of disabilities and treat people as individuals, not labelling them by impairment type, creating a truly personalised benefit that evolves over time," she added.
The consultation received more than 5500 replies, with almost 5000 of these coming from individuals.
It seems to me that once again I as a disabled person am being picked on. I have severe arthritis which over my lifetime has meant 2 knee replacements and a hip replacement. I have fused kneck bones, arthritis in my spine, fused wrists, severe pain in my other hip and inflamed shoulders, elbows, hands, fingers, ankles and toes. My arthritis is never going to get better and I am going to be in a wheelchair for the rest of my life. Yes I work and I do not "sponge" off the state but my disability costs a fortune in equipment and adaptations. Calling me in for pointless assessment and wasting tax payers money is insane. Wake up people and recognise some of us are not fiddling the system and we try hard to be good citizens, being constantly assessed is depressing and degrading I just want to get on with my life, work hard and look after my family the best I can. Without my DLA I wouldn't be able to work and life would not be worth living, I would be a bigger burden on the state and even more dependant on my family and friends. Nice one!!!
Posted by: Sharon | Apr 05 2011
No automatic entitlement is the most stupid thing I have ever heard why should taxpayers money be wasted on this and think of the stress and anxiety to the ill and disabled who will have to go through this I personally have cancer and part of my brain amputated is the goverment telling me cancer is curable and the piece of my brain will grow back it is insulting to me and the taxpayer who will be footing the bill and the person going through this, how insane is it, sir we asked you back in because your arms and legs may have grown back, many of us try to forget our problems and try to live as close enough to a normal life as we possibly can, to then be called back in and reminded of your problems and then asked to prove them is humiliating, degrading and mentally damaging, yes I still piss and shit into a bag my organs have not grown back I would suggest emptying the contents of these onto the persons desk who doubts your condition, conclusive proof, save your removed limbs and organs to prove the blatently obvious stupid and sickening idea
Posted by: Matt | Apr 04 2011
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