DWP issues message to everyone on PIP as claimants lose handouts | Personal Finance | Finance

The Department of Work and Pensions (DWP) has issued a message to everyone getting Personal Independence Payments (PIP) as it confirms some claimants are set to lose handouts following a major ‘4-point change’. The government has announced plans to tighten the eligibility criteria for PIP, the main disability payment in England, as part of its welfare reforms that will squeeze sickness and incapacity benefits. Part of the plans will see the eligibility for PIP in England and Wales reduced in a bid to save up to £5billion per year. PIP is a benefit that provides support to those with long-term physical or mental health conditions or disabilities and is currently claimed by around 3.7 million people.

The benefit is paid in two different parts – a daily living part if you need help with everyday tasks, such as cooking, washing and dressing, and a mobility part if you need help with getting around. Claimants may be eligible for one or both, but each is paid at a different rate. But under government plans, PIP is set to be more targeted at those with “higher needs” and from November 2026, claimants will need to score a minimum of four points on one daily living activity, in addition to the existing eligibility criteria.

The planned changes mean it will be more difficult for people to qualify for PIP, particularly new claimants or those facing reassessment, and so fewer people will get the benefit as a result, while current claimants could see their payments stopped or reduced.

In a recent update on the changes, the DWP said that nine out of 10 people currently getting PIP are expected to be unaffected by the new rules. This means that 10% of those currently claiming can expect to be impacted by the changes, which could include losing their eligibility for the benefit, or having payments reduced.

In a post on X (formerly Twitter), the DWP said: “The vast majority of people claiming Personal Independence Payment (PIP) in Nov 2026 will not be affected by our Welfare Reform. Nine-out-of-10 PIP recipients in November 2026 are expected to be unaffected by the change in 2029/30.”

The government has said it is consulting on how to best support those who will no longer be eligible for PIP once the changes take effect and will “improve the experience of those going through the PIP reassessment”. This will include carrying out more assessments face-to-face and “recording them as standard”.

But some 126 Labour MPs have publicly backed a move to block the legislation, arguing that disabled people have not been properly consulted over the plans and further scrutiny is needed before any changes are made.

Prime Minister Keir Starmer has confirmed a Commons vote on the Universal Credit and Personal Independence Payment Bill on Tuesday, July 1, despite the growing rebellion, saying “the important thing is to focus on the change that we want to bring about”.

A No 10 source said: “The broken welfare system is failing the most vulnerable and holding too many people back. It’s fair and responsible to fix it. There is broad consensus across the party on this.”

The source insisted the reforms were “underpinned by… Labour values”. They added: “Delivering fundamental change is not easy, and we all want to get it right, so of course we’re talking to colleagues about the Bill and the changes it will bring, we want to start delivering this together on Tuesday.”