Loading ...Over three million families will lose an average of £1,720 per year in real terms by 2029-30, as a result of proposed changes to disability and incapacity benefits, the government has estimated.
This includes 370,000 people who will lose their current entitlement to the daily living allowance element of personal independence payment (PIP), said the Department for Work and Pensions (DWP), in an impact assessment published today.
A further 430,000 future claimants, who would have been entitled to the daily living component of PIP under the current rules, would not be found eligible, under the reformed system set out in last week’s welfare reform green paper.
£4,500 average annual cut to PIP
On average, the two groups would lose out on £4,500 a year on average without PIP, which is designed to compensate people of working-age for the additional costs of disability.
To restrict eligibility, the DWP plans to bar people from receiving the daily living component if they do not score at least four points on any one of the 10 assessed activities, a policy that would apply to new applicants from 2026-27 and existing claimants, at the point of review.
To be eligible for the daily living component of PIP, you must score at least eight points across all 10 activities, which include preparing food, washing and bathing, dressing and undressing and communicating verbally.
Carers face benefit cuts too
The tightening of eligibility will also affect unpaid carers, as PIP is one of a set of disability benefits that a person has to claim in order for their carer to be able to obtain carer’s allowance or the carer element of universal credit (UC). The DWP said 150,000 would not receive one of these benefits as a result of its changes to PIP.
The department also set out the impact of its proposed measures to reduce the value of incapacity benefits.
This includes freezing the health element of universal credit at £97 per week until 2029-30 for existing claimants and halving the rate to £50 per week for new claimants, from 2026-27. In today’s spring statement, the government said that the £50 per week rate for new claimants would also be frozen until 2029-30.
Losses from incapacity benefit reductions
In its impact assessment, published alongside the spring statement, the DWP said 2.25m current recipients of the health element of UC would lose £500 per year as a result of the freeze in the rate.
A further 730,000 future recipients of the UC health element would lose out on an average of £3,000 per year due to the halving of the rate for new claimants.
However, the department added that 370,000 people would now be eligible for the UC health element, gaining £2,600 per year, as a result of its decision not to go ahead with the previous government’s plan to tighten the work capability assessment, which determines eligibility.
Losses outweigh gains from policy
Overall, it said 3.8m families would benefit from its reforms, including through its plans to increase the standard allowance of UC by more than inflation from 2026-27.
However, the projected gain for these families – £420 a year in real terms by 2029-30 – is considerably less than the £1,720 that the 3.2m families who will lose out are set to see their incomes reduced by.
Also, while just under half of the families due to benefit have a disabled person in their household, 96% of those set to lose out do, with the latter group accounting for an estimated 20% of all households with a disabled member.
Quarter of a million more in poverty
Based on its estimates, it calculated an extra 250,000 people – including 50,000 children – would be in relative poverty after taking account of housing costs in 2029-30 as a result of the measures.
It stressed that the assessment did not take account of the potential impact of its plan to increase spending on employment support for disabled people by £1bn a year by 2029-30.
It also did not take into account government plans to pay an additional premium on the health element of UC for those with severe, life-long health conditions, who would never be expected to work.
Rationale for benefits cuts
The government’s justifications for the cuts are to address the significant increases in the numbers claiming disability and incapacity benefits since 2019 – along with the resulting costs – and get more disabled people into work.
According to think-tank the Institute for Fiscal Studies (IFS), spending in Great Britain on these benefits grew from £36bn to £48bn in real-terms from 2019-20 to 2023-24 and are projected to hit £63bn in 2028-29 (in 2024-25 prices).
On the back of its proposed changes, spending on both disability and incapacity benefits will rise, but more slowly. By 2029-30, spending on PIP and disability living allowance (DLA) for working-age adults would reach £31bn, compared with £34.5bn without the reforms, said the DWP.
Measures ‘will make people more ill and less able to work’
However, charities and campaign groups renewed their severe criticisms of the measures in response to the impact assessment.
“Restricting eligibility for PIP and freezing the health element of universal credit will do nothing to help people get into work,” said Centre for Mental Health chief executive Andy Bell.
“They are more likely to make people more ill, more isolated, and less able to work. For many people living with long-term mental health problems, PIP is what enables them to carry on working.”
“MPs need to consider the consequences of plunging their disabled constituents into poverty, with little prospect of plans on employment support meaningfully mitigating this disastrous situation,” said Mencap chief executive Jon Sparkes.
Carers ‘deserve so much more’
In relation to the impact on carers, Carers UK cited research that found that 9% of carers – about 400,000 people across the UK – were in “deep poverty”, meaning their level of resources placed them 50% below the poverty line. This compared with 6% of the non-carer population.
Chief executive Helen Walker said many more carers were now in danger of further financial hardship and poverty, adding: “They deserve so much more. The repercussions of today’s changes will be felt deeply by those who for too long, have been our last line of defence – providing vital support which simply can’t be found elsewhere.”
The British Association of Social Workers (BASW) also joined the criticism, dubbing the cuts “unacceptable”.
“Any moves to balance the books must not damage living standards or make our communities and public services poorer,” said chief executive Ruth Allen. “This will add to demand for adult and children’s social work and other care services, as well as stretching community and charitable support systems.”
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The problem is so bad due to people with depression being allowed to obtain PIP. I am not referring to the many thousands with genuine mental health issues. My nephew went to the Job Centre a few months ago and explained he was too depressed to work. He was given forms to claim PIP by the staff. Promptly completed the forms and is now in receipt of the high daily care award! Surely it is a nonsense that people can be awarded high rate PIP because they are not able to wash or feed themselves, simply because they say so! This is the root of the problem and it is making life he’ll for the genuine recipients.
I am a carer, I cover more than the minimum 35 hours required for carers allowance. I am on standby 24/7. In case of emergency. I don’t get breaks or holidays. I have to travel every day to help.2 years ago I was caring for my mother too. You can only claim for 1 person. With UC I cannot sustain living on under £600 per month. I have retirement looming up in a few years of which I am well underfunded.
I am sorting my finances, I need a part time flexible job to pick up the slack. There are people worse off than me.
I get you and understand where your coming from. I am in the same boat as you. We carers caring for two people is more than 35hours per week and as you say on standby. There’s no one there to pick us up when we fall ill. I have not had one holiday in 15 years. I look after a mother that has severe arthritis and rheumatis and alzheimer’s dementia. And a younger sister who has learning disabilities. I have mty own health problems. Am a chronic genetic born insomniac and have foid allergies.
I am 70 , I retired at 67 and look after my son 24/ 7 ,he has lived with me for15 years , DWP class me as his carer, however
because I recieve the state pension ,which i worked for 50 years so I have earned this , I cannot get carers allowance because of the state pension ,which is a disgrace.
I am 70 should have retired at 60 ,wasnt aware the age had been increase ,I am worn out , physically and mentally but I have to go on looking after him which of course I will do for as long as I can but give me some financial help , I have never taken money from the state but when I need it ,the help is not there , my son has an array of mental health conditions, agoraphobia, personality disorder ,anxiety ,there is no CPN for him ,no councilling , I do that for him ,there is no help for him only a mothers love and the promise that I will help him for as long as I can .
Hi I am a full time carer for my daughter who has unpredictable seizures were she gets no warning so I have to be alart at all times as some are extremely violent I am tiny against my daughter as she is big built I’m warn out I’m 65 soon and again will lose out my pension and if I’m still here when I can to be told I will not get careras allowance and no other help great home carers are extremely under paid as it is being at home 24/7 is very isolating for me with no help from anyone let alone no time off its a disgrace who the government is treating there own while thay don’t give a dam this country is now ruined for all
The smiling assassins will do whatever it takes to hurt the ordinary people this Rachel reeves earns £150.000 thousand pound a year she and her likes have no idea of ordinary people live us the people need to be telling our country that we should all stick together and get rid of these thieving gits who dont even pay for their food or meals and get free drink and have their second mortgages paid for out of the public money that should b going to the poorest of us…we cant just complain we need a peoples revolution to say NO NO NO enoughs enough I thought the Torys were bad…….no one had any idea of what these dictators and smiling assassins would do to punish the very people who wanted the labour to do what they promised….sorry but we the people have the last say if we dare to take it but we should all be together in this otherwise it will not work…..if we dont all stick together than we will have to put up with these Elite doing whatever they like to us…sorry for the war and peace,,,this Woman who dosent know how to suffer will regret what she has done to us all because what she is actually doing is going to cause more robberies Muggings and Crime like we have never ever seen, desperate people do desperate things I remember The kid Starver saying anyone who dosent agree with me will be sacked that it the most honest thing this man has ever said another Dictator in the Making..god help us all if we dont all stand together and Say NO i know i have already said this but it needs to be said again
I have said before and will say again not all disabilities are visible i myself have several issues I don’t sleep due to a form of ptsd and in saying that I mean no disrespect to anyone I receive dla care and mobility I use mobility for a car without it i would be housebound my point is how many disabled rely on mobility cars for work and just to get out if they take that away they will make disabled unable to get to and from work then there will be the drop in motorbility cars which in turn may effect the car industry and then the amount of tax the government gets from fuel duty i don’t think the government is looking at the bigger picture the knock on effects that could happen in their greed they are likely to increase unemployment and put a bigger burden on health professionals due to mental health because being housebound is stressful i was housebound for 6 months a few years ago it was great to start with it was peaceful but then it gets stressful can’t shop cant visit friends or family cant even get to doctors have to ask others to pick up my meds so I can sympathise with people yes I’m one of those that goes without when I want something but not everyone can survive on 1 meal a day it’s enough for me and my son also my carer but some need 3 meals a day and it’s a basic right that they should be able to afford it it’s just wrong what the government is doing i know what they should be doing but I like my freedom too much to say
God bless everyone
These people need help more money not less this government ste a nightmare someone should take their salary away
They need to vote ❎ them out of parliament. They are robbing disabled people who are entitled to hv their benefits. They are worse than the tories were. Get voting and vote them out ASAP.
I’m a carer for my 66 year old wife who as Alzheimer’s. this is full on 24/7 care day night .not only struggling with the Alzheimer’s she also has servere bowel and bladder problems. meaning if we go anywhere iv got to take spair pants and pads cleaning wipes some cases clean clothes. this could be just for a doctor’s appointment. the same on that alone. would put anyone of going anywhere. at the moment we have a car from motorbility wich is a life saver .if we didn’t have the car it would be totally impossible to take my wife anywhere. meaning if she as accident with bowels while in car it’s not so inbarasing for her .and I can pull over wear convenient to change her .dont get me wrong she still feels ashamed. for me to take her for hospital appointments would take us in car 25mins each way .if we got our benefit cut and lost the car ther is no way my wife could manage to catch 3 buses to appointment and 3 buses back no toilets anywhere and what would make a hour journey in car would be 5 to 6 hours on a bus .plus the embarrassment of not been able to do anything with a bus full of people if she as bowel accident. because my wife as just reach pension age I now have to claim universal credit and with my wifes pension and my 315 pounds a month carers I get the universal credit take it all of my claim including my carers. after all deductions and having part of my rent paid to my council. the amount I get every month is o nothing. for to put my wife into fulltime care would cost the government around 2000 pounds a week wear I’m doing it 24/7 day night also having to give my own life up as I carnt do nothing now as all my time is been a carer. so I’m already saving the government 1000s each week .but the universal credit still take the 315 pounds a month carers allowance of my claim. I find that disgusting. iv gave my entire life up to give my wife fulltime care and to have the little carers allowance stopped of my uc claim is wrong .iv got to pay a top up to our rent wich before my wife got pension we paid nothing iv also got council tax to pay for wich also got paid before my wife reached pension age. I’m not a scrounger and wish our lifes was different. and truly think the amount we get now is unfair carers allowance should be mine and not stopped of my uc claim. I myself have emphysema mental health problems and sometimes really struggle as it’s so hard .the government are without doubt wrong and some desable people deserve more not less
Rachel Reeves has got a massive rock where her heart should be. How she can exist knowing what she has done is unthinkable. I just wish that someone, anyone would kick her out as the chancellor and put someone else in her place that knows how to treat people with respect and kindness.
Pip is not a benefit it’s to help with travel to hospitals etc it should not be allowed even the high court said no
FOR GOD SAKE THEY HAVE AFFECTED
FARMERS
WASP LADIES
POST OFFICE
PENSIONERS FUEL ALLOWANCE
BUSINESSES
AND NOW THE DISABLED HOW LOW CAN THEY GET !!!!
A PETITION IS NEEDED LETS TRY TO GET THEM OUT
I appreciate the insights shared in the article regarding the potential impact of upcoming changes to disability and incapacity benefits on over three million families. The statistics presented highlight a pressing concern that many may not fully comprehend, especially regarding how these changes could exacerbate existing inequalities. An important aspect to further discuss is the intersection of these benefit changes with mental health support services. Families facing the loss of disability benefits may also find themselves struggling with increased stress and anxiety, which can lead to a decline in their overall well-being. This could be particularly relevant for individuals with mental health conditions, who may depend on these benefits not only for financial support but also for access to necessary treatments. Moreover, these changes may invoke legal ramifications, similar to those outlined in another context regarding improper service on government entities. It raises questions about how families can advocate for themselves amidst bureaucratic challenges and what legal measures they might explore to ensure their rights are protected, as discussed in this article about the legal consequences of improper service. Considering the implications of these benefit changes and the associated legal nuances, how do you think families can best prepare to navigate this complex landscape?