800,000 PIP claimants to see benefit cuts as Rachel Reeves commits to DWP overhaul in Spring Statement

The changes make it harder for new applicants to qualify and for existing recipients to maintain their payments.

According to the OBR’s March 2025 Economic and Fiscal Outlook, around 800,000 people are expected to lose eligibility for the daily living component of Personal Independence Payment (PIP) due to the new threshold that requires scoring at least 4 points in a single daily living activity.

• 1.5 million people would lose eligibility under a static estimate — about 32 per cent of those receiving the daily living component.
• However, factoring in behavioural responses (appeals, claimants adjusting responses), the OBR expects: 800,000 people will lose the daily living component (about 16 per cent)
• 400,000 of those will lose PIP entirely (i.e., they don’t qualify for the mobility component either

These individuals may:

• See their PIP payments reduced, if they still qualify for the mobility component only.
• Or lose their PIP entitlement entirely, depending on their overall assessment scores.

Kendall is set to publish an impact assessment detailing who will be affected most. It is set to show that the poorest will lose the most, although every income level will be hit.

Hannah Peaker, deputy chief executive of the New Economics Foundation think tank, said: “It is extraordinary to think that the chancellor has been pushing through cuts to benefits that provide a lifeline to millions of ill and disabled people without a clear understanding of the impact.

"This is what happens when departments are forced to scramble for cuts to meet arbitrary fiscal rules, and it is simply no way to run an economy.”

She said that “cutting benefits for this group will push people into poverty and poorer health, and will harm rather than help the state of our economy”.

Thousands of people claiming PIP could lose up to £5,600 a year under new eligibility rules announced by the Department for Work and Pensions.

The Government is introducing a significant change to the qualifying criteria for PIP, which will take effect in November 2026.

Under the new rules, claimants will need to score at least one '4' on daily living activities to qualify for the benefit.

This marks a major shift from the current system, which focuses on total points accumulated across different activities.

The change will particularly affect those who score multiple '2' points across various activities but don't reach the threshold of '4' in any single category.

PIP currently provides financial support to over three million people with long-term health conditions that impact their ability to perform everyday tasks.

Currently, PIP claimants need to score a total of at least 8 points across ten daily living activities to receive the lower rate payment of £72.65 weekly. For the higher rate of £108.55 weekly, a total of 12 points is required.