Thousands of people could lose out on almost £3,850 a year in PIP (Personal Independence Payments) with experts warning this could cause uncertainty for claimants whose conditions can vary.
The benefit helps those who live with a long-term health condition or disability with their extra costs, and includes a daliy living part and a mobility part. There is a lower and higher rate for each element depending on your level of need.
Labour has announced changes to try and reduce its welfare spending, including a new eligibility requirement for PIP. Under the new rules, you will have to score at least four points on one of the daily living activities to get the daily living element of the benefit.
This will be in addition to the current system, where you have to score eight points in total across the different activities to get the standard rate and 12 points to get the enhanced rate. These scorings apply for both the daily living activities and for the mobility-related activities that you are scored on.
You need a score of four on at least one of the 10 daily living activities to reach the total to get the higher rate, so this change will only mean those on the lower rate for the daily living part could lose out on this part of the payment.
The lower daily living rate is currently £72.65 a week. But benefit rates are increasing 1.7% in a few weeks from April 6, with the rate increasing to £73.90 a week, or £3,842.80 a year, a substantial amount to lose from your income.
The PIP eligibility changes will come in from November 2026, so those losing out on benefits will likely miss out on even more, as this will be after the April 2026 benefits increase. Simon Dukes, CEO of charity-owned lender Fair for You, warned the tightening of the qualifying criteria is troubling given the “unpredictable” nature of the PIP system and who qualifies.
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.”
He said PIP payments already fall short of actually covering claimants’ extra costs. He warned: “PIP is already insufficient when it comes to one off or unexpected expenses so the new system will put some people in an unfair and devastating situation.”
Fair for You provides a Shopping Card and a Food Club card as a cash buffer to help people cover the cost of a one-off item or periods where their expenses are high. Jonathon Lilley, 50, from Wisbech, claims PIP and has had help from Fair for You.
He has a neurological condition and struggles to walk 500 yards. He said the uncertainty around the PIP reforms is “distressing” as he and his partner, who also claims PIP, can only just about get by on their current income.
An example of his extra costs is paying for travel so he can go to a hospital appointment in Norwich. Mr Lilley said: “The Government have picked the wrong end of society to pick on. They should go after the big companies and high earners.”
