The Department for Work and Pensions has announced that 150,000 people will lose eligibility for Carer's Allowance or the Universal Credit carer element due to stricter rules for disability benefits.
This comes as part of Chancellor Rachel Reeves' Spring Statement, which confirmed significant cuts to the welfare bill.
The changes are expected to affect up to 3.2 million families by 2030. Individuals affected by changes to Personal Independence Payment (PIP) and Universal Credit could lose an average of £1,720 per year.
PIP is divided into two components - the daily living part and the mobility part.
The changes are expected to affect up to 3.2 million families by 2030
GETTYCurrently, claimants need between eight and 11 points for the standard rate of the daily living component, and 12 points or more for the higher rate.
From November 2026, a minimum of four points in at least one activity will be required to receive the daily living part of PIP.
The eligibility criteria for the mobility part will remain unchanged.
As a result, an estimated 800,000 people will not receive the daily living component by 2029/30.
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Of the 800,000 affected, approximately 150,000 individuals will no longer receive Carer's Allowance or the Universal Credit carer element.
Carer's Allowance, currently worth £81.90 a week, is granted to those caring for someone for at least 35 hours weekly.
The person being cared for must claim certain benefits, including PIP and Attendance Allowance.
The carer element of Universal Credit, valued at £198.31 per month, is similarly dependent on the care recipient receiving specific benefits.
These cuts to carers' benefits will amount to £500million by 2029/30. Charities are urging the Government to reconsider its welfare plans.
Helen Walker, Chief Executive of Carers UK, said: "Today's spring statement confirms that the Government's welfare reform plans will include the first substantial cuts to Carer's Allowance in decades, realising many carers' worst fears."
She added: "This is an unprecedented step in the wrong direction and must be swiftly rectified."
Walker warned: "The repercussions of today's changes will be felt deeply by those who, for too long, have been our last line of defence - providing vital support which simply can't be found elsewhere."
Chancellor Rachel Reeves' Spring Statement confirmed significant cuts to the welfare bill
Getty ImagesThe Government has also confirmed the scrapping of the Work Capability Assessment for Universal Credit claimants. This assessment will be replaced by the PIP assessment.
The Universal Credit health element for new claimants will be almost halved from April 2026.
It will decrease from £97 a week in 2024/25 to £50 a week in 2026/27, remaining at that level until 2029/30.
Those with the most severe, lifelong health conditions will have their income protected through an extra premium.
Current recipients of the Universal Credit health element will continue to receive £97 a week until 2029/30.
