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Politics
14 June 2025

DWP Overhaul Could Halt PIP Payments For Hundreds Of Thousands

New eligibility rules and a 13-week transition period will reshape Personal Independence Payment support amid rising welfare costs and political opposition

The Department for Work and Pensions (DWP) is set to implement significant changes to the Personal Independence Payment (PIP) and Universal Credit systems, changes that could see hundreds of thousands of people lose vital support after a 13-week transition period. This overhaul, which follows a rebellion from Labour Party backbenchers, aims to tighten eligibility criteria and manage soaring welfare costs, but it has sparked fierce criticism from disability advocates and opposition MPs.

At the heart of the reform is a new eligibility rule scheduled to take effect in November 2026, pending parliamentary approval. Claimants will need to score a minimum of four points in at least one of the ten daily living activities assessed to qualify for the daily living component of PIP. These activities include essential tasks such as preparing and eating food, washing, dressing, communicating, managing medication, budgeting, and social interaction.

This change is designed to focus PIP support on those with the greatest needs — those unable to complete activities at all or requiring significant assistance. However, it also means that people with lower needs, who currently qualify by accumulating points across different activities but don’t reach four points in any single one, will lose eligibility. According to Social Security and Disability Minister Sir Stephen Timms, who responded to concerns from Labour MP Noah Law, "the rate of increases in claims and expenditure is not sustainable and has outstripped the growth in disability prevalence." He emphasized that the reforms aim to "control the spend on the welfare bill, while continuing to support those people with higher needs relating to their long-term health condition or disability."

The DWP’s impact assessment, published in March 2025, projects that around 370,000 current PIP recipients could lose their benefits when reassessed in the 2029/30 fiscal year due to these new rules. Furthermore, an estimated 430,000 future claimants will no longer qualify for PIP after the reforms are fully rolled out, with each affected individual facing an average annual loss of £4,500. This substantial reduction has raised alarms among disability campaigners and some MPs.

Adding to the complexity, the DWP analysis of claimants as of January 2025 reveals that a significant proportion of people with common disabling conditions score below the four-point threshold. For example, 79% of claimants with back pain (154,000 out of 194,000) and 71% with chronic pain syndromes (97,000 out of 173,000) scored less than four points across all daily living activities. Even among those with neurological conditions like multiple sclerosis, nearly half scored below the threshold. These figures highlight the broad impact the new eligibility criteria could have across various health conditions.

The DWP uses a points-based system for PIP assessments, where claimants are evaluated on how safely and independently they can perform tasks, how long these tasks take, how often their condition affects them, and whether they need help from others or equipment. Each activity is rated with descriptors that assign points from zero to twelve. To qualify for the standard rate of PIP, claimants must score between eight and eleven points; twelve or more points qualify them for the enhanced rate.

While the eligibility criteria for the daily living component are tightening, there will be no changes to the mobility component of PIP. Payments will remain non-means-tested and will continue to rise in line with inflation, specifically linked to the September inflation rate. Additionally, the DWP plans to increase face-to-face assessments, moving away from the current predominance of remote assessments conducted via phone, video call, or paper-based methods.

In response to the backlash, the DWP has proposed a 13-week transition period for those losing PIP payments, a period more generous than the usual four weeks typically allowed by government policy. During this time, claimants will continue to receive payments, and Carer's Allowance will also be maintained. However, once the transition ends, Carer's Allowance payments will cease alongside PIP. Those with the most severe health conditions will be exempt from reassessment and will receive extra income support through Universal Credit. Moreover, a new scheme is set to launch that will allow disabled individuals to attempt employment without the risk of losing their benefits, aligning with the welfare reform bill's rollout.

Despite these mitigations, the reforms have met with strong opposition. Labour MP Ian Byrne criticized the 13-week transition, saying, "After 14 weeks do the disabled and sick affected miraculously end the need for the vital assistance being taken away? An absolute nonsense." Labour MP Rachael Maskell echoed this sentiment, stating that the proposals "will therefore not change the material facts nor my intention to vote against." Another Labour MP revealed that party whips are struggling to secure support for the bill, noting, "The whips are pushing very hard with MPs but it's not working."

The DWP’s justification for these reforms centers on the unsustainable rise in PIP claims and expenditure, which they argue has outpaced the actual growth in disability prevalence. Work and Pensions Secretary Liz Kendall has highlighted that over 1,000 PIP claims are approved daily, underscoring the pressure on the welfare system. The reforms aim to ensure the program’s sustainability while focusing support on those with the most severe disabilities.

As of January 2025, there were 3.7 million PIP claimants across Great Britain, a figure that has grown significantly over recent years. The DWP’s proposed changes reflect an attempt to recalibrate the balance between supporting disabled people and managing public spending, but the human cost of these adjustments remains a contentious issue.

The debate around these reforms raises fundamental questions about how society supports people with disabilities and long-term health conditions. While the government's focus is on fiscal responsibility and targeting resources to those most in need, critics argue that the changes could leave vulnerable people without essential support, disrupting their quality of life. The introduction of a scheme allowing disabled people to try employment without risking benefits offers a glimmer of hope, but many remain unconvinced that this will offset the losses caused by the tightened eligibility.

Ultimately, the coming months will be critical as Parliament considers the welfare reform bill. The outcome will determine how Britain balances compassion with cost control in its social security system, impacting hundreds of thousands of disabled people and their families across the country.