Changes to PIP (Personal Independence Payment) eligibility could lead to some claimants losing out on £12,000 a year in payments.

DWP estimates suggest that some 800,000 people will lose out on eligibility for the daily living part of the benefit under proposed changes, with an average loss of £4,500 a year by 2029/2030.

But Liberal Democrat MP Steve Darling told MPs during a debate on the proposed changes that some people could lose out on much more.

He said: “We must remember that PIP is a passport to other benefits; for example, Carer’s Allowance is often married to it.

“Under the proposals, a number of households across the country could lose £12,000 if they lost PIP and Carer’s Allowance at the same time. That would be massive.”

The higher rate for PIP is currently £5,740.80 a year while Carer’s Allowance pays £4,331.60 a year, so if a household lost out on both these benefits, their income would drop by £10,072.40 a year.

The proposed PIP changes will come in from November next year, after next year’s benefit increase, so the loss of income will likely be even more, approaching the £12,000 figure suggested by Mr Darling.

Figures from The Joseph Rowntree Foundation showed how a household could lose out on £12,000 under the proposed benefit changes, as the health-related element for Universal Credit is to be frozen at its current level of £97 for existing claimants, and reduced to £50 for new claimants.

The charity said a family where a person lost out on the higher daily living part of PIP and therefore lost out on the health-related element of Universal Credit, would lose out on almost £1,000 a month, or £12,000 a year.

PIP helps people who live with a long-term health condition or disability cover their extra costs, with separate payments depending on how you are affected in your mobility and in your daily living.

Labour has announced plans for a new qualifying criteria for the daily living element will be introduced, so you have to score at least one four across the 10 daily living activities to qualify.

At present, you only need a total of eight points or more across the activities to get the lower rate, currently £73.90 a week, and a total of 12 or more to get the higher rate, which currently pays £110.40 a week.

This means if you lost out on the higher rate, your entitlement would drop by £5,740.80 a year. The changes are set to come in from November 2026, after next year’s benefits increase, so the shortfall will likely be more than this.

Carer’s Allowance is paid at £83.30 a week, or £4,331.60 a year, to a person who provides care for someone for at least 35 hours a week.

To qualify, the person you care for must receive a particular qualifying benefit, one of which is the daily living component of PIP, so if they no longer qualified for PIP their carer may lose out too.

Mr Darling told his fellow MPs that the PIP changes could significantly impact his constituency of Torbay, in Devon, where 12% of the working age population claim the benefit.

Several Labour MPs spoke out during the debate to oppose the proposed PIP changes. Nottingham East MP Nadia Whittome said: “The proposed disability cuts mean more poverty, suffering and hardship for disabled people.”

She shared one young claimant’s perspective: “I am terrified they will take my PIP away, that I will end up homeless, and my only option will be suicide.”

DWP minister Sir Stephen Timms provided a Government response. He said: “We are clear that the daily living component of PIP should not be means-tested, taxed, frozen or anything else that has been suggested.

“We are committed to continue increasing it in line with inflation. For the majority of current claimants, and categorically for the most vulnerable, who have been highlighted in this debate, it will continue to provide, in full, the support that it currently provides.

“Employment support for those who are able and want to work will be substantially improved as well.”