The Department for Work and Pensions (DWP) announced that around 150,000 individuals will no longer be eligible for Carer’s Allowance or the carer element of Universal Credit following the implementation of stricter rules for Personal Independence Payment (PIP). Chancellor Rachel Reeves unveiled the Spring Statement today, confirming significant cuts to the welfare bill affecting up to 3.2 million families by 2030.
It is projected that the average person will face a yearly loss of £1,720 due to adjustments to PIP and Universal Credit. PIP comprises two components: the daily living part and the mobility part. To qualify for the standard rate of the daily living part of PIP, individuals need between eight and 11 points, while 12 points or more are required for the higher rate.
Starting from November 2026, a minimum of four points in at least one activity will be necessary to receive the daily living part of PIP. The eligibility criteria for the mobility part of PIP will remain unchanged. Approximately 800,000 individuals are expected to lose access to the daily living component of PIP by 2029/30 as a result of these modifications.
Among these figures, an estimated 150,000 people will no longer receive Carer’s Allowance or the Universal Credit carer element. Carer’s Allowance, valued at £81.90 per week, is granted to individuals providing at least 35 hours of care weekly to someone receiving specific benefits like PIP and Attendance Allowance.
The carer element of Universal Credit, amounting to £198.31 per month, is also contingent on the care recipient claiming designated benefits. Various charities have urged the Government to revisit its welfare plans.
Helen Walker, Chief Executive of Carers UK, expressed concern over the welfare reform’s impact on Carer’s Allowance, emphasizing the need for swift corrective action. The changes to PIP entitlement rules are anticipated to deprive 150,000 individuals of carers’ benefits by 2029/30, resulting in a £500 million reduction in financial support for carers.
PIP serves as a crucial benefit affecting eligibility for further caregiver support, with potential adverse effects on carers and their families. The modifications are expected to cause significant anxiety for financially strained carers already grappling with poverty.
Additional confirmed changes include the replacement of the Work Capability Assessment with the PIP assessment for Universal Credit claimants to determine fitness for work. The health element of Universal Credit for new claimants will nearly halve from £97 a week in 2024/25 to £50 a week by 2026/27, remaining frozen at this level until 2029/30. In contrast, individuals with severe, lifelong health conditions will receive an additional premium to safeguard their incomes.
For existing Universal Credit health element claimants, the rate will remain frozen at the current £97 per week until 2029/30.