DWP PIP Cuts Up to £6,300 a Year – How Will Low Income Households Be Affected?

Published On: July 3, 2025

Big changes are coming to the UK’s benefits system, and they’re hitting some of the most vulnerable the hardest. The Department for Work and Pensions (DWP) is proposing cuts to Personal Independence Payment (PIP) that could strip up to £6,300 per year from over a million people. While the goal is to save the government £5 billion a year by 2029, many disabled individuals and low-income households may face serious hardship as a result.

Whether you rely on PIP or know someone who does, this guide will walk you through what’s happening, who’s most affected, and how to prepare.

Summary

Aspect	Details
Topic	DWP PIP Cuts of up to £6,300 per year
Affected Households	Over 1.2 million claimants
Annual Financial Impact	Loss of £4,200 to £6,300 for some
Poverty Risk	250,000 people, including 50,000 children
Reform Goal	Save £5 billion annually by 2029-30
Target Audience	Disabled individuals, low-income households
Official Resource	Visit GOV.UK PIP Page

What

Personal Independence Payment (PIP) helps people who live with disabilities or long-term health issues cover the extra costs of daily life. This can include things like mobility support, care help, or assistive equipment.

The government now says the current system is too expensive and needs reform. What that means in practice is stricter rules, reduced support, and possibly replacing cash payments with vouchers or one-time grants.

Impact

Here’s how these proposed cuts could directly affect you:

1. Up to £6,300 Lost Per Year

If you receive the higher rate of PIP, these changes could result in you losing £60–£120 per week. That adds up to between £4,200 and £6,300 annually.

2. More People Falling Into Poverty

The government itself estimates that up to 250,000 people could be pushed into relative poverty by these cuts. That includes 50,000 children whose families rely on PIP.

3. Increased Reliance on Food Banks

Charities warn that cutting these benefits will lead to a surge in demand for food banks and emergency support from local charities and councils.

4. Mental Health Crisis

Reducing income and security could worsen conditions like anxiety, depression, and PTSD. This is especially worrying for people already struggling with mental health challenges.

Why

According to the DWP, the aim is to make the system more efficient and to “focus support on those who need it most.” Some of the ideas being floated include replacing monthly payments with one-off support like therapy, training, or assistive devices.

But critics say this is just budget-cutting in disguise. Organisations like the Resolution Foundation argue that these savings come at a cost to long-term public health and wellbeing.

Who

New rules may prioritise visible or physical disabilities, making it harder for people with depression, anxiety, or PTSD to qualify for support.

Those With Fluctuating Illnesses

Conditions like Fibromyalgia, ME/CFS, or Multiple Sclerosis can vary from day to day. These may be harder to prove under tighter assessment rules.

Young Disabled Adults

Many people aged 18–30 rely on PIP for independence. These cuts could affect their ability to access education, work, or housing.

Single-Parent Families

If either a parent or child receives PIP, a loss in income can stretch already tight budgets even further.

Prepare

With changes on the horizon, here are steps you can take now:

Check Your Status

Use the PIP eligibility tool on the gov.uk site to see how you might be affected.

Collect Evidence

Update your medical records, doctor’s letters, prescription history, and personal care notes. This documentation will help if reassessments become mandatory.