Government plans to change Disability Living Allowance (DLA)

On May 14, 2012, in News, by Lewis Alexander
  • Half a million people could be affected by the plans of Government to change the DLA benefit over to a new structured Personal Independence Payment (PIP).
  • The new system is due to replace the disability benefit later this year. Currently people receive disability living allowance for help and assistance in moving around and it is based on capability not sickness.

The Government has information to hand that suggests that DLA claims have risen at a rate that does not relate to statistics in other areas of daily life monitored closely by government offices.

  • A 30% rise in recent years has been calculated for DLA claimants.
  • The annual cost of benefits in UK is soon to reach £13 billion!

One problem has been continuity of DLA payments without re-assessment, if people were previously awarded DLA; they usually were never questioned or re-assessed again. Some DLA benefit may no longer be justified under the new Personal Independence Payment or PIP system and this could involve a possible half a million people currently claiming DLA or Disability Living Allowance in the UK.

Living with personal debt problems whilst on Disability Living Allowance or DLA can be a struggle in itself and here at Lewis Alexander Financial Management we understand the problems faced.

People usually struggle with cash loans and catalogue debts and unsecured credit agreements with high rate lenders when in personal debt on DLA.

This type of lender will prey on the vulnerable in society and this can end up in people utilising most of the DLA they receive to repay credit and interest.

If you are making multiple payments to credit and loan companies each month and are struggling on benefits such as DLA or Incapacity, you may wish to consider getting advice or help from a financial management company.

Once you study who your money is being paid out to each month, along with a consultant or debt advisor that can assist, you may be able to find a way to reduce your payments and make the money you get stretch further for living costs and daily life.

This should certainly be considered if you find that your DLA payments will not be as much, if at all, once the new Personal Independence Payment or PIP gets introduced.

Speak with a trained personal finance consultant and obtain further advice and help to clear personal debt problems whilst on DLA or benefits.

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