Millions of Britons are set to be "£4,000 worse-off" as a result of looming reform to benefit payments being introduced by the Department for Work and Pensions (DWP).
The Labour Government has announced significant changes to disability benefits that could see around one million people lose their entitlement to Personal Independence Payment (PIP).
Work and Pensions Secretary Liz Kendall revealed plans yesterday to tighten eligibility criteria for PIP, which helps those with disabilities or long-term health conditions cover additional living costs.
From November next year, PIP will only be available to people who score at least four points on at least one activity during their assessment.
Britons could lose more than £4,000 a year due to looming changes to PIP
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The move is part of wider welfare reforms aimed at cutting the benefits bill, which the government said has risen dramatically in recent years.
Ministers argue the changes are necessary to make the system sustainable while focusing support on "those with higher needs".
The Resolution Foundation, an independent think tank, estimates that around one million people will completely lose their entitlement to PIP as a result of these changes.
Ruth Curtice, the chief executive of the Resolution Foundation, told the BBC that while the Government has not specified exactly how many people will be affected, their analysis suggests the figure is around one million.
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"I think it would have been good if the Government had told us yesterday, but given what they've told us about how much they're planning, the Resolution Foundation estimate it's around a million people who are losing their entitlement to PIP completely," she said.
The changes are expected to save around £5billion by 2030. The financial impact on those affected by the PIP changes will be substantial, with individuals set to lose between £4,200 and £6,300 annually.
When asked about the financial consequences for those losing entitlement, Curtice explained: "PIP varies depending on exactly what you qualify for, but between £4,200 and £6,300 a year."
Labour has indicated it is "mindful" of the potential impact and is considering ways to assist those affected. This might include "transitional protection" for those who no longer qualify for PIP and the entitlements linked to the award.
Liz Kendall is under fire for her DWP reforms
PAThe number of PIP claimants in England and Wales has increased dramatically in recent years, rising by 71 per cent over the past five years.
As of January 31, 2025, 3.66 million people were entitled to PIP, up from 2.14 million in January 2020. The Government says around 1,000 people are signing on for PIP every day.
Ministers insist reform is necessary as the benefits bill reached £48 billion in 2023-24 and is forecast to rise to £67 billion by 2029-30.
The most common conditions among current claimants are psychiatric disorders (1.4 million), general musculoskeletal disease (691,000), neurological disease (467,000) and specific musculoskeletal disease (437,000).
The Government also intends to increase the prevalence of face-to-face assessments for both PIP and the existing work capability assessment.
Disability charities and campaigners have strongly criticised the government's plans to reform PIP. James Taylor of Scope said the new measures should "shame the government to its core".
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Labour is looking to make significant cuts to the welfare state PA"Ripping £5billion out of the system by 2030 will be a catastrophe for disabled peoples' living standards and independence," he added.
Thomas Lawson, CEO of anti-poverty charity Turn2us, acknowledged some positive aspects but warned the cuts would cause more harm than good.
"We welcome proposed investment in employment support and the 'right to try work'. However, the cuts will harm more people than they help," he said.
"Reducing access to PIP and cutting Universal Credit for those unable to work is short sighted. It will create hardship, erode trust and cost us more in the long run."
