Martin Lewis has issued a warning about changes to PIP (Personal Independence Payment) as claimants could lose out on thousands of pounds a year under tightened eligibility criteria.
In efforts to rein in Government spending on benefits, Labour has announced plans for an additional qualifying criteria for PIP and the scoring criteria to qualify for the payments.
The benefit helps people with a long-term health condition or disability to cover their extra costs, with a payment to help towards your daily living costs and another for your mobility needs, with a lower and higher rate for each element.
Under the new rules, to get the lower daily living part, currently £72.65 a week, you will have to score at least four on one of the 10 activities, whereas at present you just need a total score of 8 across all the activities.
Sharing his initial thoughts on the PIP changes, Mr Lewis said: “PIP is often an individual’s lifeline, the difference between an unsustainable life and a manageable one.
“The Government says those in ‘genuine need’ will be protected, yet that all boils down to matter of definition. Many in need risk losing vital support.”
A Government document setting out the changes said: “PIP will remain an important non-means tested benefit for disabled people and people with long-term health conditions.
“However, the rate of increases in claims and expenditure is not sustainable, outstripping growth in disability prevalence. To better control spend on the welfare bill, we will make changes to PIP to focus it more on those with higher needs.”
Benefit rates are increasing 1.7% from April, with the lower daily living rate increasing to £73.90 a week, meaning those losing out on this under the tightened eligibility criteria would see thier payments drop by £3,842.80 a year.
The changes are set to come in from November 2026, after next year’s benefits increase, so the shortfall will likely be even more.
Labour also announced plans for a review of the PIP assessment, and its intention to have more assessments in person, while reducing the number of assessments that benefit claimants have to go through.
Mr Lewis issued a warning about these proposals: “Those whose mental health isn’t good can struggle with administration, process and decision making and be panicked by assessment and review.
“While reducing assessments will help to that, how that new assessment is designed and structured is very important so it doesn’t tip people further into the abyss.”
Simon Dukes, CEO of charity-owned lender Fair for You, voiced concerns about the new PIP criteria given the “unpredictable” nature of the PIP system and who qualifies for what.
He explained: “This is particularly worrying for people whose conditions ebb and flow, who at times will be scoring straight 4s and at other times may not meet that threshold. Our customers are experts in managing on very little money and often more financially savvy than people on larger incomes.
“But they are still coming to Fair for You with no other alternative for responsible credit. Current PIP payments leave claimants with no financial buffer if they have to replace an essential household item or even put food on the table.”
