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Home » 150,000 people will have benefit payments cut by DWP under PIP changes
Money

150,000 people will have benefit payments cut by DWP under PIP changes

By staff13 May 2025No Comments3 Mins Read

The Department for Work and Pensions (DWP) has put forward changes to PIP that will apply from November 2026

Couple sorting finances
PIP changes will have wider implications for other benefits(Image: Getty Images)

More than 150,000 people will see their benefit payments cut following a major shake-up of how Personal Independence Payments (PIP) is awarded.

The Department for Work and Pensions (DWP) has put forward changes to PIP that will apply from November 2026. PIP is a disability benefit that is awarded to people who need help with everyday tasks due to an illness, disability or mental health condition.

There are two parts to PIP – the daily living rate and the mobility rate – and you can be entitled to just one, or both of these elements. PIP claimants are assessed using a points system.

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The daily living rate is £73.90 a week if you’re awarded the standard rate, while the higher rate is £110.40 a week. There is also the mobility rate, which is £29.20 a week for the standard rate, and £77.05 a week for the higher rate.

To get the standard rate of the daily living part of PIP, you currently need between eight and 11 points. If you score 12 points or more, you are eligible for the higher daily living rate.

But under changes being considered by Labour, from November 2026, you would also need a minimum of four points in at least one activity to get the daily living part of PIP. The point system for the mobility part of PIP is not changing.

The DWP estimates that 800,000 people won’t receive the daily living rate of PIP by 2029/30. It has also confirmed 150,000 will be missing out on Carer’s Allowance or the Universal Credit carer’s element by 2029/30 too.

You have to be caring for someone who receives the daily living part of PIP to get these caring elements. Carer’s Allowance is worth £83.30 a week.

The earning limits, which sets how much someone claiming Carer’s Allowance can earn in income, is £196 a week. Carer’s Allowance is paid to those providing at least 35 hours of care to someone who receives one from a list of qualifying benefits:

  • Personal Independence Payment – daily living component
  • Disability Living Allowance – the middle or highest care rate
  • Scottish Adult Disability Living Allowance – the middle or highest care rate
  • Attendance Allowance
  • Pension Age Disability Payment
  • Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
  • Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
  • Armed Forces Independence Payment
  • Child Disability Payment – the middle or highest care rate
  • Adult Disability Payment – daily living component at the standard or enhanced rate
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