PIP making budgeting decisions: how to describe your difficulties
A calm, practical guide to the PIP making budgeting decisions activity (Question 12 on the PIP2 form). Understand what the DWP means by simple and complex budgeting, how to describe your difficulties, and see example notes. This is reference-only and not legal, medical, or benefits advice.
What this activity covers
Activity 10 on the PIP assessment covers your ability to make decisions about money. The DWP splits this into simple and complex budgeting decisions.
Simple budgeting decisions are everyday transactions like buying items in a shop, understanding the cost of something, and working out whether you have been given the right change. Complex budgeting decisions involve managing a household budget, planning ahead financially, paying bills on time, and understanding the consequences of financial choices.
This activity is not just about mathematical ability. It also covers your ability to make sound financial decisions. If your condition causes impulsive spending, inability to plan ahead, or confusion about money, that is relevant. The difficulty must be linked to a health condition, not simply to a lack of financial education.
How the DWP scores this activity
| Descriptor | Points |
|---|---|
| Can manage complex budgeting decisions unaided | 0 |
| Needs prompting or assistance to make complex budgeting decisions | 2 |
| Needs prompting or assistance to make simple budgeting decisions | 4 |
| Cannot make any budgeting decisions at all | 6 |
Writing your notes for this activity
Examples: describing budgeting difficulties
Below are examples of how you might describe your difficulties with this activity. These are for illustration only and should not be copied into your own form. Always describe your own experience.
“I spend money impulsively and have no ability to budget. I buy things online without thinking about whether I can afford them and I have built up significant credit card debt because of this. I forget to pay bills even with reminders, and I have had my electricity cut off twice. My partner now manages all the bills and gives me a set amount each week for spending. Without that I would spend everything in the first few days.”
“I do not understand how much money I have or how much things cost. I cannot work out change and I do not know if I am being given the right amount back. I do not understand bills or bank statements at all. My support worker helps me with all money matters. I have a prepayment meter because I could not manage bill payments. My mum puts money on my electric key for me and gives me cash for shopping because I do not understand my bank card.”
“During manic episodes I spend large amounts of money on things I do not need. I have spent hundreds of pounds in a single day on impulse purchases and taken out loans I could not afford. My partner now has access to my bank account and monitors my spending. When I am in a depressive episode I do not open post or deal with any financial matters at all, and bills go unpaid. I have a County Court Judgement because of debts from a manic episode.”
“I cannot face dealing with any financial matters. I do not open bills because they make me extremely anxious. My partner pays all the bills and manages the budget because if it were left to me nothing would get paid. I have been referred to debt advice twice because of debts that built up when I was living alone. I do not check my bank balance because seeing the numbers causes me to panic.”
Using GuidedPIPs
GuidedPIPs walks you through the making budgeting decisions activity with guided prompts tailored to your conditions. It helps you describe your difficulties step by step, so you do not have to figure out the structure on your own.
You can start for free and decide whether full access is right for you.