The hidden impact of Labour's disability benefit cuts – from carer's allowance to railcards

The government’s plans for disability benefit cuts which will impact around one million people will have sharp knock-on effects, including for unpaid carers.

Liz Kendall’s plans mean that in future, it will be harder for people to qualify for the ‘daily living’ element of the personal independence payment (PIP) benefit. 

The Resolution Foundation think tank estimates that between 800,000 and 1.2 million people will miss out on PIP by 2029/30, including existing claimants who lose out when they are reassessed.

This will also impact people who could lose their ‘passported benefits’. These are entitlements that flow from receiving a particular benefit – in this case, PIP. 

Prime among these is carer’s allowance, which is paid to unpaid carers who look after disabled people. Carer’s allowance is only paid to people who look after someone in receipt of disability benefit – and the main working-age disability benefit in England and Wales that qualifies for carer’s allowance is PIP.

Read more of Big Issue’s analysis of Labour’s benefit reforms:

• Benefit cuts are a ‘violation of human rights’ which will harm ill and disabled people, Labour warned
• I’m a disabled person claiming benefits – and I’ve lost all hope in the Labour government
• ‘I’ll lose my ability to be part of society’: Disabled people fear life after Labour’s benefit cuts

The welfare reform green paper published yesterday (18 March) says the government will consult on possible “transitional protection” for those who lose their eligibility for PIP and the entitlements linked to their award, but even if this is adopted, “transitional” protection would by definition only be temporary.

Helen Walker, chief executive of Carers UK, said: “We are very concerned that the plans the government has published could hit unpaid carers, disabled people and their families very hard, if implemented in full. 

“While we agree the current system is unfit for purpose and a greater focus on prevention, early intervention and personalised support are much needed, the financial impact of tightening eligibility to essential disability benefits could severely impact on individuals and families who are already struggling financially.”

Walker said 1.2 million unpaid carers in the UK are living in poverty, with 400,000 in deep poverty.

“Raising the qualifying threshold for support could mean even more carers will struggle to afford essentials like food and heating,” she added. “Future changes to PIP are likely to affect carers’ entitlement to carer’s allowance – over half of carer’s allowance awards are tied to PIP.

“Many carers have disabilities or long-term health conditions and caring is a risk factor in having to give up work. 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 to get by.”

Other passported benefits are also affected. Most PIP claimants won’t lose eligibility from the planned changes, but those whose PIP payments are based – or would be based – entirely on the daily living element, and who do not score at least four points in any one daily living category in their PIP assessment or reassessment, would be hit.

An important impact will be via the benefit cap. This limits the total amount of benefits a working age person can claim, although PIP payments don’t count towards this cap. People are exempt from the cap if they, their partner, or an under-18 child receive PIP, disability living allowance or the highest level of out-of-work disability benefit – which itself is in line for substantial reform – or certain other benefits.

If someone loses their PIP and isn’t exempt from the benefit cap via another route, they could have their benefits cut substantially.

The Disabled Persons Railcard is available to all PIP claimants, though working age disabled people who don’t receive PIP could also qualify for the railcard with evidence of visual impairment, hearing impairment or epilepsy.

The housing benefit disability premium is similarly open to all PIP claimants, but people might also be able to claim if they have been unable to work for at least a year.

People who get passported benefits via the ‘mobility’ award – including the Blue Badge scheme, vehicle tax exemption/reduction, Motability cars, London ULEZ exemption, and those passported benefits available to all PIP claimants – will not be affected.

The Department for Work and Pensions did not respond to a request for comment.

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