DWP Bad News as households face ‘triple hit’ of benefit cuts due to PIP and Carer’s Allowance reform

Labour’s proposed reforms to the Personal Independence Payment (PIP) are set to cause significant hardship for many disabled households in the UK. According to new data from the Department for Work and Pensions (DWP), tens of thousands of claimants could face the loss of multiple benefits at once due to the introduction of the controversial “four-point rule”. This reform could trigger a cascade of financial problems for vulnerable households already struggling to make ends meet.

What Are the Proposed Changes to PIP?

The proposed changes, outlined in a Green Paper published in March 2025, introduce a “four-point rule”. This rule would require claimants to score at least four points in a single daily living category during their assessment. This would be in addition to the existing requirement of scoring eight points across all categories. The aim is to tighten the criteria for receiving PIP, but critics warn that it will unfairly penalize those who need help the most.

The Domino Effect: How Carer’s Allowance Could Be Affected

Charities and advocacy groups are warning that these reforms could cause a domino effect, resulting in disabled individuals and their carers losing multiple forms of financial support. One key issue is that many carers depend on receiving Carer’s Allowance, which is available to those who care for people who are eligible for PIP’s daily living payment.

Under the new rules, if a person being cared for loses their PIP daily living payment due to the four-point rule, their carer could also lose their Carer’s Allowance. This would result in a triple reduction in support, leaving households struggling even more. In total, it is estimated that about 95,000 working-age claimants currently receive both PIP daily living payment and Carer’s Allowance.

The Impact of These Cuts

DWP data has revealed that all 95,000 claimants who are currently receiving both PIP and Carer’s Allowance face the potential loss of their daily living payment when their PIP claims are reviewed after November 2026. This is when the four-point rule is set to come into effect. While some claimants may be able to avoid the cuts (e.g., if they reach pension age before the review or if their condition worsens to meet the new threshold), the majority remain at risk of losing vital financial support.

The Work Capability Assessment and Universal Credit

The situation could worsen even further due to Labour’s proposed abolition of the work capability assessment by the end of the decade. This assessment is used to determine eligibility for out-of-work disability benefits, such as the Universal Credit health element. The new proposal would tie these payments to the same PIP assessment, meaning that many disabled people could lose their PIP, Carer’s Allowance, and even their Universal Credit health payments.

This compounded loss of support could lead to a severe financial crisis for disabled households, which are already facing immense challenges.

Who Will Be Affected?

According to estimates, approximately half of all PIP daily living claimants are at risk of losing their PIP under the new four-point rule. This could affect thousands of households. Additionally, pension-age claimants—who typically don’t face regular PIP reviews—may still encounter “light touch” assessments in the future, leaving even more people uncertain about their future benefits.

Carers Are Particularly Vulnerable

Ramzi Suleiman, the policy and public affairs manager at Carers Trust, highlighted that approximately 150,000 carers currently receive both PIP and Carer’s Allowance. With the proposed reforms, nearly two-thirds of them could lose their PIP, which serves as a vital source of income for carers who often have to give up work to look after loved ones.

Suleiman warned that this could push carers into poverty, making it even harder for them to continue providing the care they do. He added that carers are already filling gaps in the UK’s overstretched social care system, and if they are forced to stop caring due to financial pressures, it could put even more strain on the public system.

Charities and disabled rights groups are urging the government to rethink these proposed changes. The four-point rule threatens to create a ripple effect, stripping support from already vulnerable families. Carers—who are already underpaid and undervalued—could face significant financial hardship, further exacerbating the care crisis in the UK. Labour’s proposed reforms could potentially push thousands of households deeper into poverty and insecurity.

With the government’s vote on the PIP cuts expected later this month, it is crucial that MPs consider the profound impacts these changes will have on disabled individuals and their families. If implemented, these reforms could lead to a triple reduction in financial support, leaving many in desperate need of assistance.

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