The Government has announced welfare reform plans that will include the first substantial cuts to carers’ benefits in a generation. The Spring Statement Impact Assessment confirmed that the Government plans to cut spending on carers’ benefits by £500 million by 2029/30, with 150,000 carers estimated to lose their existing or future entitlements as a result.
We are extremely concerned by the proposed changes and the devastating impact they will have on many unpaid carers. We will shortly be launching a campaign calling on the Chancellor to stop these appalling changes from going ahead.
You can read our statement responding to the Government’s Spring Statement here
Please note: it is important that carers are aware that the Government’s proposed changes to PIP will not come into effect until November 2026.
Changes to the benefits system
On Tuesday 18 March, the Government published the Pathways to Work Green Paper. The Green Paper outlines the Government’s proposed changes to the benefits system, and the consultation for these changes. These proposals were added to the Government’s Spring Statement on Wednesday 26 March.
We will be engaging in the consultation process and will keep this page updated with the latest information and updates.
You can see our response to the Spring Statement here, and our full policy briefing looking at the proposals in detail here
What you need to know
The Government’s plans for reforming the benefits system and encouraging more people to enter employment include the following proposals:
Personal Independence Payment (PIP) is a benefit paid to people who have daily living and/or mobility needs, to help with the extra costs of long-term illness or disability. You can find out more about PIP with our PIP factsheet.
The Government has proposed changing the eligibility for the daily living component of PIP. From November 2026, under the new rules, for new claims and reassessments, a person will need to score at least 4 points in one activity to receive PIP. Anyone scoring less will no longer be eligible for the daily living component of PIP.
What does this mean?
We are very concerned that the proposed changes to PIP will make it harder to qualify, and many people will lose their entitlement to PIP, impacting on their household incomes and access to other passported benefits. The Government has estimated that by 2029/20 an estimated 800,000 people will not receive the Daily Living component of PIP, who would have under the current rules.
Higher eligibility requirements for PIP will also mean that carers who are currently entitled to carer benefits will lose that entitlement, as PIP award is the ‘gateway’ benefit for accessing carer benefits. The Government has estimated that 150,000 people will lose their entitlement to Carer’s Allowance or the UC Carer Element by 2029/30 as a result.
We also know that around 150,000 unpaid carers also receive PIP themselves because of their own disabilities. We are concerned that carers may lose their own entitlement to PIP.
Currently, many people in England and Wales must go through a Work Capability Assessment (WCA) and a PIP assessment to get full access to the benefits they are entitled to.
From 2028/29, the Government plans to scrap the WCA assessment and replace it with the single PIP assessment. Eligibility for the additional health element in Universal Credit (UC) will be based on whether someone is receiving PIP.
What does this mean?
Some disability organisations have welcomed a single assessment over the current system, which is less complex, time consuming and duplicates information.
However, we are concerned that the new system creates a cliff edge, where PIP eligibility entitles you to a significantly higher income through the health element of UC and for PIP. This means you will either be entitled to both benefits or neither.
Universal Credit (UC) is a means-tested benefit to help provide extra financial support for those on a low income or those who are not in work.
Currently, if a person is entitled to the UC health top-up (LWCRA), they are eligible for an additional £416.19 per month, on top of UC standard allowance.
From April 2026, the Government is proposing to freeze the rate of health element of Universal Credit for current claimants. The rate of UC health element will be frozen at £97 per week until 2029/30.
For new claimants, the rate of UC health element will be reduced by £47 per week (from £97 per week in 2024/25 to £50 per week in 2026/27). The rate of health element will also be frozen until 2029/30.
From 2027/2028, the Government is also proposing to delay access to the health element of UC until someone is aged 22 or older.
The Government will also increase the UC standard allowance for new and existing claims. The current (2024/25) rate for single claimants over 25 is £91 per week (pw) and will increase to £92pw in 2025/26, then jump to £98pw in 2026/27, then £100 in 2027/28, £103 in 2028/29, and £106 in 2029/30.
What does this mean?
While we welcome the proposed rises to the UC standard element and the additional premium people will receive, we are concerned that new claimants for the UC health element will receive significantly less financial support compared to existing claimants. This would affect the household income of carers and their families who apply for the benefit for the first time after April 2026, where the carer is living with the person they care for.
We are also concerned that new claimants for the UC health element who are under the age of 22 will receive less financial support. This would affect the household income of carers and their families who apply for the benefit for the first time after April 2027, where the carer is living with the person they care for.
The proposed changes will start to be in introduced in 2026 and 2027. The Government is running a consultation on some of the changes until 30 June 2025.
Carers UK has published a full policy briefing to help you better understand the changes the Government is proposing. We will keep this briefing updated as we get more detail on the proposed changes. We will also be responding in full to the consultation Government is undertaking.
All these measures affect carers across England and Wales.
In Scotland, consideration will be needed as to how entitlement to the new UC health element will be determined, given that UC is reserved and PIP is devolved and has been replaced by Adult Disability Payment (ADP). This is a gateway benefit for carers receiving the Carer Support Payment.
If there is a cut in the budget for PIP, a proportionate figure will be cut from the amount the Treasury gives to the Scottish government. Scottish ministers will have the choice of applying a similar scale of cuts, or of finding funds from other spending, or tax, to fill the gap.
In Northern Ireland, responsibility for social security is almost entirely devolved to Stormont so the NI Executive has powers to make their own rules on Personal Independence Payments (PIP) or any other part of the welfare system. However, in practice the region has nearly always followed what happens in rest of UK especially when it comes reform of welfare linked to Department of Work and Pensions systems.
What does Carers UK think about the proposed changes?
While we agree that the benefits system is not fit for purpose and long overdue for reform, we are extremely concerned that the plans the Government has set out could have a significant and negative impact on unpaid carers, disabled people and their families, if implemented in full.
We are particularly concerned about:
- Proposed changes to Personal Independence Payments lower rate of daily living component eligibility will affect some carers’ entitlement to Carer’s Allowance (CA) from November 2026. Currently, over half of Carer’s Allowance awards are tied to PIP as it is a gateway benefit for claiming CA. DWP’s own Impact assessment estimates that 150,000 unpaid carers will lose access to their carer benefits by 2029/30 as a result of the tightening of eligibility criteria in PIP.
- Many carers have health conditions or disabilities themselves and could lose access to both benefits – PIP and CA – a double impact. 28% of carers are disabled (compared with 18% of non-carers). Around 150,000 unpaid carers also receive both Carer’s Allowance and PIP, relying on these vital benefits for the extra costs of disability and caring to make ends meet.
- The financial impact of tightening eligibility to essential disability benefits, including PIP, which could severely impact unpaid carers and disabled people who are already struggling financially. Raising the qualifying threshold for support could mean even more carers will struggle to afford essentials like food and heating. Many carers who could be affected already face financial hardship. Our research shows 1.2 million unpaid carers in the UK are living in poverty, with 400,000 in deep poverty.
- We are concerned that new claimants for the UC health element will receive less financial support relative to existing claimants. This would affect the household income of carers and their families who apply for the benefit for the first time after April 2026, where the carer is living with the person they care for. The reduction of the health element to £50 a week for new claimants and the health element being frozen until 2029/30 will have a very severe impact on families. The health element for existing claimants will also be frozen until 2029/30 at £97 per week. Because of inflation, this will be a cut in financial support year on year.
- Whilst it is welcome that Government is increasing the Universal Credit Standard Allowance by £14 a week (£5 above inflation) by 2029/30, it will not compensate for the loss of income set out above.
How you can get involved
We will be engaging fully in the Government’s consultation on these changes and want to make sure carers’ voices are heard loud and clear in this process. We will also be campaigning on key areas to ensure the Government continues to support unpaid carers.
If you have experience or views on the proposed changes or want to be involved in our campaigning work, please contact policy@carersuk.org
Help and advice
We know that these changes will be concerning for many carers and their families. For information and advice, please visit:
Our Help and Advice pages
If you have any questions around the changes or need advice, please contact advice@carersuk.org or call our helpline on 0808 808 7777 (Monday to Friday, 9am-6pm).