DWP £5,740.80 Loss per Year: People on PIP could lose Benefits due to new rules change

A major change to Personal Independence Payment (PIP) rules could leave hundreds of thousands of people without financial support from the Department for Work and Pensions (DWP). The planned reform is part of the Labour government’s update to disability and incapacity benefits and is expected to impact 800,000 people, including many who currently receive PIP.

If you or someone you know gets PIP, here’s everything you need to know about the new rule, when it starts, and how much it could cost.

What’s Changing in PIP From 2026?

From November 2026, the rules for getting the Daily Living Component of PIP will become stricter. To continue getting this benefit, a person must score at least 4 points on one of the 10 everyday activities assessed by DWP. These activities include things like getting dressed, preparing meals, and managing medication.

Right now, more people qualify with lower scores, but the new rule will narrow the eligibility to those with higher care needs only.

Who Will Be Affected?

The DWP has shared that:

• 370,000 current PIP claimants may lose their benefits after a review.
• 430,000 people in the future who would normally be eligible might not qualify under the new rules.

That adds up to 800,000 people affected.

How Much Could You Lose?

If you lose the Enhanced Daily Living Component, you could miss out on £5,740.80 a year under current payment rates. This amount may increase after April 2026 when benefit rates are updated based on inflation.

Here’s a breakdown of the current Daily Living Component payments:

• Standard rate: £73.90 a week (£295.60 every 4 weeks) = £3,842.80 a year
• Enhanced rate: £110.40 a week (£441.60 every 4 weeks) = £5,740.80 a year

The DWP estimates the average loss for those affected will be around £4,500 per year, but for people on the enhanced rate, the loss could be much higher.

Full PIP Payment Breakdown for 2025/2026

PIP is paid every four weeks, and the total depends on which components (Daily Living and/or Mobility) you qualify for. Here are all the possible combinations from April 2025:

Daily Living Component:

• Standard: £73.90 weekly / £295.60 every 4 weeks / £3,842.80 annually
• Enhanced: £110.40 weekly / £441.60 every 4 weeks / £5,740.80 annually

Mobility Component:

• Standard: £29.20 weekly / £116.80 every 4 weeks / £1,518.40 annually
• Enhanced: £77.05 weekly / £308.20 every 4 weeks / £4,006.60 annually

Combined Payments:

• Standard Daily Living + Standard Mobility = £103.10 weekly / £5,361.20 annually
• Standard Daily Living + Enhanced Mobility = £150.95 weekly / £7,849.40 annually
• Enhanced Daily Living + Standard Mobility = £139.60 weekly / £7,259.20 annually
• Enhanced Daily Living + Enhanced Mobility = £187.45 weekly / £9,747.40 annually

This means the lowest possible payment is £116.80 every four weeks, and the highest is £749.80 every four weeks.

When Will the Changes Start?

The new rules will apply from November 2026, but payment amounts may change again in April 2026, when benefits are increased based on inflation.

The upcoming PIP changes will make it harder for people with lower support needs to qualify. While the aim is to focus on those with higher care requirements, many current and future claimants could lose thousands of pounds every year. If you receive PIP, it’s important to understand how the new rules work and prepare for any reviews of your claim starting in late 2026.

Source

FAQ