In a move that has sparked widespread concern, the Department for Work and Pensions (DWP) has proposed substantial cuts to Personal Independence Payment (PIP) and Universal Credit benefits, which could result in some claimants losing up to £900 per month.
This reduction, totaling £5 billion, is part of broader austerity measures announced by the government in June 2025.
As many as 800,000 individuals, particularly the most vulnerable disabled people, are at risk of these cuts.
What is Personal Independence Payment (PIP)?
Personal Independence Payment (PIP) is a government support program designed to assist individuals with disabilities in meeting additional living costs associated with their condition.
Unlike other benefits, PIP is non-means tested, ensuring that those who need help, regardless of their income or savings, are eligible. However, the new cuts have ignited fears of severe financial hardship for many who rely on this essential support.
Details of the DWP Cuts and Their Impact
The proposed cuts would result in a significant reduction in the financial support offered to claimants, particularly those with severe disabilities.
Some of the most vulnerable individuals could lose up to £886 per month from their PIP payments.
Key Figures on the DWP Cuts
| Cut Type | Estimated Monthly Loss | Affected Claimants | Total Budget Cut |
|---|---|---|---|
| Personal Independence Payment | Up to £886 | 800,000 claimants | £5 billion |
| Universal Credit (combined) | £400–£500 | Affected PIP recipients | Part of total cuts |
As outlined above, these cuts are not limited to PIP but extend to Universal Credit, which also supports individuals and families on low incomes or with disabilities.
Government’s Rationale Behind the Cuts
The Labour Party government, along with the DWP, argues that these cuts are essential for reducing national debt and managing public finances.
However, critics, including Siân Berry, Green MP, strongly oppose the decision. They claim that the cuts will disproportionately affect those already living in deep poverty and exacerbate inequality.
Berry argues that disabled individuals are already facing economic hardship, with many struggling to afford basic needs like food, healthcare, and housing.
She stated that the new cuts will deepen poverty levels and worsen the living conditions for already vulnerable groups.
Expert Opinions and Criticism
Siân Berry, co-chair of the parliamentary group, expressed her outrage over the DWP cuts. She emphasized that these cuts will result in “unprecedented hardship” for disabled claimants, some of whom could see their support reduced by hundreds of pounds per month.
She added that this decision is driven by cost-saving measures rather than the well-being of individuals or the society at large.
According to Berry, the cuts will not save money in the long term. Instead, the social costs of these cuts, such as increased poverty-related illnesses and pressure on local councils, will outweigh any short-term savings.
She insists that the government should explore other avenues, such as tax reforms or more equitable wealth distribution, to alleviate financial burdens.
Who Will Be Most Affected?
While all PIP claimants face the possibility of reduced payments, the most significant losses will impact those who rely heavily on the benefit to meet daily living costs. Disabled workers, individuals with long-term conditions, and those needing personal care may see their monthly payments reduced by nearly £900, which is a life-altering amount for many families.
The looming cuts to PIP and Universal Credit are set to have a devastating impact on up to 800,000 disabled claimants.
With some losing up to £886 per month, the financial burden is likely to deepen the poverty faced by vulnerable individuals.
While the government maintains that these cuts are necessary for fiscal responsibility, experts like Siân Berry argue that they will ultimately harm society more than they save.
FAQs
Who is affected by the DWP cuts?
The cuts will primarily affect PIP claimants, particularly those with significant disabilities who rely on the benefit to cover daily living costs.
How much could I lose from PIP payments?
Claimants may lose up to £886 per month depending on the severity of the cuts and their eligibility criteria.
What is the government’s reason for implementing the cuts?
The government argues that the cuts are part of a broader strategy to reduce public spending and manage national debt, despite criticism from advocates and experts.