DWP disaster as households face 'triple hit' of benefit cuts due to PIP and Carer's Allowance reform

Charities are warning the reforms threaten to create a domino effect for disabled families. When carers lose their PIP under the new rules, they could also lose their Carer's Allowance if the person they care for fails to meet the stricter criteria. This would leave vulnerable households facing a triple reduction in support.

Department for Work and Pensions (DWP) data released last week reveals that 95,000 working-age claimants currently receive both PIP daily living payment and Carer's Allowance.

These individuals scored under four points in all daily living categories but still qualified under existing rules. All 95,000 face potential loss of their daily living payment when their PIP claims are reviewed after November 2026, when the four-point rule comes into force.

The figures emerged from a written parliamentary question tabled by Liberal Democrat MP Alison Bennett. While some claimants may avoid the cuts if they reach pension age before review or if their conditions worsen sufficiently to meet the new threshold, the majority remain at risk.

As well as this, analysts are warning over the impact of the Government's planned abolition of the work capability assessment, which could compound losses further.

The mechanism behind this triple benefit loss centres on Carer's Allowance eligibility rules. Unpaid carers of working-age people primarily qualify for Carer's Allowance if the person they care for receives PIP daily living payment.

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When the cared-for person loses their PIP under the four-point rule, the carer automatically loses their Carer's Allowance entitlement. Combined with the carer's own PIP loss, this creates a cascading financial crisis for disabled households.

The reforms could ultimately strip away even more support. Plans to abolish the work capability assessment by decade's end would base out-of-work disability benefits like Universal Credit's health element on the same PIP assessment with its four-point rule.

This means some disabled people could eventually lose PIP, Carer's Allowance and universal credit health payments in succession. The DWP admitted it cannot determine how many of the 95,000 affected carers look after someone who also scored below four points in each daily living category.

Given that approximately half of all PIP daily living claimants are exposed to the four-point rule, thousands of disabled households likely face this compounded financial blow. The uncertainty extends to pension-age claimants, who typically avoid regular reviews but may still face infrequent "light touch" assessments.

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Parliament is expected to vote on the PIP cuts later this month. The mobility element of PIP will remain unaffected by the proposals, offering limited consolation to those facing losses elsewhere.

Ramzi Suleiman, policy and public affairs manager at Carers Trust, warned that approximately 150,000 carers receive both PIP and Carer's Allowance. "This figure shows that nearly two-thirds of them might lose PIP a vital source of income that supports them in their caring role," he said.

"Carers are already being plunged into poverty, often having to give up work to look after friends and family at home. Without the financial safety net PIP provides, they may no longer be able to provide the care they do."

He added: "Carers are plugging the gaps in our social care system. If they are forced to stop, even more pressure will be placed on that creaking system. The Government needs to think again and start supporting carers instead of punishing them with these brutal benefit cuts."