DWP confirms 150,000 people on these benefits to lose thousands | Personal Finance | Finance

The DWP has provided further details about a group of 150,000 benefit claimants set to lose out on payments under changes coming in from next year.

Labour ministers announced a raft of measures to bring down the benefits bill earlier this year, including tightening the eligibility for PIP (Personal Independence Payment).

DWP estimates suggest these changes would mean a £4,500 drop in payments on average for those affected, by 2029/2030, with 370,000 current claimants set to lose out on payments as well as 430,00 future claimants.

But the changes could have a knock-on effect meaning others also lose out on eligibility for benefit payments. As MPs will vote on the proposed changes soon, Baroness Ruth Lister asked the Labour Government how many carers who look after people who receive PIP would lose out as a result of the changes.

She asked in particular how many of these carers would no longer be entitled to Carer’s Allowance and how many would no longer qualify for the carer element of Universal Credit.

In response, Labour baroness Maeve Sherlock provided figures suggesting 150,000 people receiving carer’s benefits would be affected by the changes, by 2029/2030.

She said this would include 107,000 people who would will lose out on Carer’s Allowance payment, with 96,000 to lose out on the carer’s element of Universal Credit.

The overall figure also includes 55,000 people who would lose out on both Carer’s Allowance and the carer’s element, meaning they would see their benefits drop by the equivalent of the carer’s element.

How much is Carer’s Allowance and the carer’s element of Universal Credit?

To qualify for Carer’s Allowance, you must provide at least 35 hours a week of care for someone, and they need to be receiving a particular qualifying benefit, one of which can be the daily living element of PIP. Carer’s Allowance currently pays £83.30 a week, or £4,331.60 a year.

Similar to Carer’s Allowance, to get the carer’s element of Universal Credit you need to provide care for someone for at least 35 hours a week.

The person you care for also needs to qualify for a certain health or disability-related benefit, one of which can be the daily living element of PIP. The carer’s element is currently worth £201.68 a month, or £2,420.16 a year.

Claimants should note that if you claim Carer’s Allowance and Universal Credit, your Universal Credit payment will be reduced by an amount equal to your Carer’s Allowance payment.

Nonetheless, you can still separately get the carer’s element of Universal Credit, on top of your standard allowance and any other extra payments you get through Universal Credit.

How is eligibility for PIP changing?

PIP helps cover the extra costs of a person who lives with a long-term health condition or disability, including a daily living part and a mobility part.

A new qualifying rule is proposed to come in from November 2026, which will make it harder to qualify for the daily living element.

The new rule will mean you have to score at least one four across the 10 daily living activities that you are scored on, to determine how your condition affects you and if you should get the lower or higher rate, or no payment at all.

At present, you only need a total of at least eight to get the lower rate, currently £73.90 a week, and a total of at least 12 to get the higher rate, currently £110.40 a week.

This means a person could score consistent 2s across the activities, qualifying them at present for the higher rate, but under the new rules may qualify for no daily living part, meaning a £5,740.80 a year drop in income.