DWP PIP can Cut up to £6,300 a year: The UK government’s plans to reform Personal Independence Payment (PIP) could lead to over a million people losing their benefits, according to a new report from the Resolution Foundation.
Under Labour’s new proposal, PIP will no longer be judged just by medical conditions. Instead, eligibility will depend on how much difficulty a person has doing daily tasks, and only people with greater disability needs will qualify.
These changes, which aim to reduce spending, may hit low-income households the hardest.
What Is PIP and How Does It Work?
Personal Independence Payment (PIP) is a benefit for people with long-term health problems or disabilities. It helps with the extra costs of living with a condition and is not linked to employment status.
PIP is divided into two parts:
- Daily Living Component (for tasks like preparing food, bathing, dressing, etc.)
- Mobility Component (for help with moving around)
Each component has two payment rates:
- Standard Rate
- Enhanced Rate
Currently, the standard daily living component pays £72.65 per week, and the enhanced rate pays £110.40 per week.
What’s Changing in PIP Eligibility?
Under Labour’s new reforms, the daily living part of PIP will only be awarded if a person scores at least four points in one or more daily living activities during assessment.
Examples of daily activities include:
- Preparing food
- Getting dressed
- Bathing and washing
- Managing medication
This rule will apply to both new applicants and existing claimants when their awards are reviewed at the end of the fixed term.
The change aims to focus support on those with the most serious needs, but critics say it will remove support from many who still struggle daily.
Who Will Be Affected the Most?
The Resolution Foundation says this change is likely to hit low-income households hardest. Around 70% of all PIP claimants live in the lower half of the UK’s income scale.
They estimate that between 800,000 and 1.2 million people could lose support worth between £4,200 and £6,300 per year by 2029-30, if Labour goes ahead with the plan to save £5 billion from PIP.
Expert Warning: “Short-Term Savings, Long-Term Pain”
Louise Murphy, Senior Economist at the Resolution Foundation, said:
“While some reforms may help more people into work, the real concern is the scale of income loss for people who will receive less or no support—even if they’re unable to work.”
She added that the real winners of this reform would be people without health conditions, while those with disabilities face a huge financial hit.
According to the Foundation, the reforms are driven by the need to cut costs in the short term to meet fiscal rules, not because of a long-term plan to improve support for disabled people.
While Labour’s proposed changes to PIP may sound like a move towards better targeting of support, experts warn it could result in a huge income shock for over a million people, many of whom live in low-income households and already face financial hardship.
If you currently receive PIP or plan to apply, it’s important to understand the new rules, check if you meet the revised criteria, and get advice if you’re concerned about losing your benefits.
FAQ’s
What is the new PIP rule under Labour’s reforms?
Under the new rule, you must score at least four points in one daily living activity to qualify for the daily living component of PIP.
How much is the PIP daily living payment?
The standard rate is £72.65 per week, and the enhanced rate is £110.40 per week.
Who will be most affected by the PIP changes?
Low-income households are expected to be most affected, with up to 1.2 million people losing support of £4,200 to £6,300 per year.
When will the new PIP rules apply?
The changes will apply to new applications and existing claimants at the time of their review.
Why is the Resolution Foundation critical of these changes?
They believe the reforms are focused on short-term cost savings rather than genuine long-term support, risking severe income losses for disabled people.
This government keeps attacking the most vulnerable in our country. People who have worked all their lives and because of no fault of their own struggle daily with genuine health issues.
They could save Billions by not letting Illegal Migrants into our country who haven’t contributed a Penny. But Billions keeps get thrown at them. This needs to stop NOW!!
So I can’t really leave a comment!!
I give up with this sight.
This is yet another blow to people on low income with various health issues mental and physical.Some of these people targeted by this government if they start to worry about there finances being taken away could find themselves unable to cope mentally .I see this leading to more suicides,hospital visits arrests by police due to possible behaviour changes caused by creating extra mental health issues .Finally a note to government,do what you were voted into power for and that is to help the people of this country not make them more vulnerable,I’ll and afraid,Help your people or get out and let someone else do what you should be doing ..Thank you ..
Changes in DWP rules could make life tougher for low-income households. Smart budgeting is now more important than ever. Thanks for the update!