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DWP explains how PIP payment cuts will affect state pensioners

DWP explains how PIP payment cuts will affect state pensioners

Business Mayor18-05-2025

The DWP has issued guidance on how PIP (Personal Independence Payment) claimants of state pension age will be affected by upcoming benefits rules changes.
From November 2026, a new qualifying criteria for PIP will make it harder to qualify for the benefit, which supports people with the extra costs they have due to a health condition or disability.
PIP includes a mobility payment and a daily living part, with a higher or lower rate depending on your level of need for each element.
You currently need to score a total of eight points across the 10 activities you are scored on to get the daily living part, and at least 12 points to get the higher rate. But a new rule is to be added meaning you will also need at least one score of 4 to qualify for the payment.
DWP estimates suggest this will mean by the 2029/2030 tax year, a total of 800,00 people will lose out on PIP payments, with an average loss of £4,500.
The daily living element of PIP is currently paid at £73.90 a week at the lower rate, or £3,842.80 a year, and at £110.40 a week at the higher rate, the equivalent of £5,740.80 a year.
Conservative MP Alicia Kearns asked the Government how the changes would affect someone of state pension age requesting a 'change of circumstances review' would be required to meet the new four-point test to continue to get their payments.
DWP minister, Sir Stephen Timms, provided a response. He said: 'Our intention is that the changes will apply to new claims and award reviews from November 2026, subject to parliamentary approval.
'In keeping with existing policy, people of state pension age are not routinely fully reviewed and will not be affected by these changes.'
However, he did refer to some of the responsibilities that PIP claimants have that would apply to claimants of state pension age.
Mr Timms said: 'All claimants are required to notify the department of any change to their circumstance, be that an improvement or deterioration in their needs.
'Upon notification of a change, a case manager will consider what further action might be required to ensure the claimant is receiving the correct level of support.'
Recent figures from the DWP showed the overpayment rate for PIP increased from 0.4% in the 2023/2024 tax year to 1.3% in the 2024/2025 year.
The department said the increase was driven by a 'statistically significant' increase in claimants failing to report an improvement in their needs.
However, the proportion of claims that were overpaid remained at 1 in 100 claims in the 2024/2025 year, which was the same as the year before.
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