150,000 people could lose benefit in DWP overhaul - and it's not PIP
The planned changes are due to take effect in November next year
Carers may feel the pinch from the planned changes to Personal Independence Payments (PIP) set for November 2026. Despite no alterations being made to the Carer's Allowance directly, Carers UK has warned that thousands could lose this benefit.
To qualify for Carer's Allowance, the carer must meet various criteria, such as the type of care provided and earning less than £196 per week elsewhere. However, the person they are caring for must also be claiming at least one of the qualifying benefits, which include the likes of:
PIP
Disability Living Allowance
Scottish Adult Disability Living Allowance
Attendance Allowance
Pension Age Disability Payment
Child Disability Payment
Therefore, if the individual being cared for only claims PIP from the DWP and doesn't meet the new criteria next year, they may lose their disability benefit, consequently making their carer ineligible for Carer's Allowance. Carers UK estimates that around 150,000 carers could lose their Carer's Allowance by 2029/2030 due to the changes to PIP.
Carer's Allowance is the primary benefit for unpaid carers, providing a weekly payment of £83.80. Which is among the lowest benefit of its kind according to the charity.
To qualify for the allowance, you must devote a minimum of 35 hours per week to caring for a disabled, ill, or elderly individual. This can involve tasks such as cooking, washing, escorting the person to medical appointments, and managing household bills.
Eligible carers are also restricted from earning more than £196 from other sources, which is an increase of £45 from the previous threshold of £151. However, Carers UK pointed out that many carers lack the time or energy to earn a substantial income outside of their caring responsibilities.
According to the charity's research, 42% of carers who receive Carer's Allowance struggle financially, while 1.2 million carers in the UK live in poverty. Helen Walker, Chief Executive of Carers UK, stated: "Unfortunately, we are looking at a game of two halves.
"Last year in the 2024 Autumn Budget we welcomed news that the limit on Carer's Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential. But these changes now take place against the concerning backdrop of new welfare reforms announced in the 2025 Spring Statement."
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