Kate Wells, Research Officer, Money and Mental Health
Held by a thread and fighting for every penny: The human cost of PIP reform
5 June 2025
- We’ve just published new research looking at the impact of the government’s proposed reforms to PIP eligibility.
- What we’ve found strongly suggests that these changes will make hundreds of thousands of people worse off – to the tune of several thousand pounds each year.
- This will have a significant knock-on impact on people’s mental health and make it more difficult to find or sustain work, contrary to the government’s intentions for this policy.
- We’re strongly urging the government to reconsider – and to ditch these proposals in their present form.
When the government announced its intentions to restrict access to the Personal Independence Payment (PIP), we were immediately worried about the potential hammer blow for people with mental health problems. Following a survey of our Research Community, our concerns have only increased as it has become clear just how much of a lifeline this benefit is. Today we have published a policy note setting out our findings.
PIP is what keeps many people afloat, paying for essentials like food, energy, therapy, transport and medications. According to the OBR, 800,000 of 3 million people who claim the PIP daily living component could lose their entitlement.
Our research shows the consequences for those losing PIP will be devastating to mental health as well as undermining the government’s intentions to get more people into work.
“Without PIP, daily tasks like grocery shopping or leaving the house can feel like scaling mountains. These payments don’t just fund survival; they restore dignity, hope, and connection to a world that often feels out of reach. For many, PIP is the fragile thread weaving them into society’s fabric, transforming isolation into possibility and despair into a fighting chance.” Expert by experience
What will people lose?
Of those affected, 7% of all respondents in our survey receive the enhanced rate of PIP and face a devastating £5,750 annual loss. Another 17% get the standard rate, equating to a £3,850 cut per year. These are not small sums. They’re the difference between getting by and going under.
And people are already preparing for the worst. Among those likely to be impacted:
- 76% say they’ll cut back on essential household bills such as self rationing energy or water
- 85% plan to reduce spending on food
- Many said they would stop therapy, stop buying essential over the counter medications, or give up hobbies that help manage their conditions.
It’s not hard to see where this is heading: increased poverty, worsening mental health and a greater risk of crisis.
A barrier to work – not a bridge
Ironically, the reforms are being sold as a way to get more people into work. But our research suggests this move could be entirely counterproductive.
For some, losing PIP will mean giving up their jobs or reducing their hours. Around one in five PIP recipients we surveyed are currently in work – and 63% of them said they would have to reduce their hours or stop working altogether if they lost their award.
The support PIP provides – transport, therapy, even heating – enables many people to manage their health and build up to or stay in employment. Take it away, and that fragile progress is at risk.
“PIP pays for the private therapy [and other health treatment]… which keeps my mental health at a functioning level most of the time. Without these I doubt I could even manage the permitted work hours (14 hours per week) that I do.” Expert by experience
Reforming what’s broken – but In the right order
There is a case for reform. The PIP system is not working well – particularly for people with mental health problems. The government has promised to review the assessment process and invest £1 billion in employment support. These are welcome steps, but rolling out sweeping cuts without fixing the system is dangerous.
Instead of easing the path into work, this change could push people deeper into poverty, worsen their health, and increase demand on NHS and crisis services. This isn’t a route into employment, it’s a road to crisis.
The government must halt these reforms and rebuild the system with compassion, not cuts.
If you need support with your money or your mental health, please know that there is help available – and no debt problem is insurmountable. Please see our Get Help page for a list or organisations that can offer support.