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150,000 MORE people set to lose DWP benefits thanks to Labour’s cuts

Steve Topple by Steve Topple
30 March 2025
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The Department for Work and Pensions (DWP) has ignited a wave of fury among chronically ill and disabled people and their unpaid carers as it confirmed sweeping alterations to the Personal Independence Payment (PIP) regulations.

With these changes, a staggering 150,000 people are set to lose their eligibility for Carer’s Allowance and the carer element of DWP Universal Credit, as highlighted by the latest announcements from chancellor Rachel Reeves during her Spring Statement.

DWP: cutting unpaid carers already pathetic benefits

These changes come against a backdrop of significant cuts to chronically ill and disabled people’s benefits, anticipated to affect as many as 3.2 million families by 2030. According to estimates, individuals could see their annual income plummet by an average of £1,720 due to these shifts in policy.

DWP PIP, which is crucial for so many disabled people, is split into two distinct components: daily living and mobility.

Currently, the standard rate for the daily living part of DWP PIP requires claimants to accrue between eight and 11 points, while those eligible for the higher rate must score 12 points or more. However, a new threshold is set to be introduced in November 2026 which will require a minimum score of four points in at least one activity to qualify for the daily living component, although the mobility criteria will remain unchanged.

Helen Walker, chief executive of Carers UK, sharply condemned the decision, describing it as “the first substantial cuts to Carer’s Allowance in decades,” and calling it an unprecedented step in the wrong direction.

Poverty is already entrenched. Labour will make it even worse.

In an interview with Manchester Evening News, she voiced serious concerns over the implications for the many unpaid carers already facing financial hardship.

1.2 million unpaid carers already live in poverty, and 400,000 live in deep poverty in the UK.

She further explained that DWP PIP functions as a “gateway” benefit, meaning that changes will have dire consequences on the entitlements and support available to those who are already in difficult positions.

The DWP itself estimates that 150,000 unpaid carers will lose their entitlements to Carer’s Allowance or the carer’s element of Universal Credit.

Moreover, the financial burden on carers is exacerbated by the revelation that Carer’s Allowance currently provides £81.90 a week to those who care for someone for a minimum of 35 hours per week, but that support is now dwindling. The carer’s allowance of DWP Universal Credit is £198.31 every four weeks.

Another disturbing dimension of these reforms is the potential scrapping of the Work Capability Assessment, previously used to determine the eligibility of individuals for Universal Credit work-related support, with plans to replace it with the DWP PIP assessment.

A concerning reduction in the DWP Universal Credit health element has also been flagged, dropping from £97 a week in 2024/25 to £47 by 2026/27, and remaining at that level until 2029/30 for new claimants.

“This will cause huge anxiety for hard-pressed carers and their families who need every penny they can get to pay their bills,” Walker warned, emphasising the crucial role that 1.2 million unpaid carers play in the UK economy, estimated to be valued at a remarkable £184 billion a year.

The DWP: plunging people into chaos

Walker aptly summarised the situation by stating “they deserve so much more,” highlighting the desperate need for support for those in caregiving roles.

In addition, the DWP’s announcement regarding Blue Badge applications following the upcoming PIP reforms has aroused concern amid fears of stricter eligibility criteria that may further disadvantage disabled individuals already struggling to maintain their independence.

Currently, one of the major qualifications for obtaining a Blue Badge is the reception of DWP PIP, and changes to these rules could impede access to essential benefits for many with mobility challenges.

As these developments unfold, the impact on chronically ill and disabled people and their families continues to loom large – causing untold stress and despair.

Featured image via the Canary

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