Hundreds of thousands of seriously ill and disabled people will become “invisible” and cut adrift from local support services as a result of the government’s £5bn programme of disability benefit cuts, experts have warned.

Claimants who do not qualify for personal independence payment (Pip) or incapacity benefits would lose a “marker of need” with local councils and NHS bodies, making it “nearly impossible” for them to access help, said the consultancy Policy in Practice.

This would “effectively erase some of the most vulnerable people” from the system – including those with life-limiting illnesses including cancer, multiple sclerosis and lung conditions – while making it harder for care services to deliver preventive support

More than 230,000 disabled people will lose access to Pip and the incapacity element of universal credit as a result of the changes, losing at least £8,100 a year, Policy in Practice estimates in a briefing. Nearly 600,000 more who do not claim universal credit will lose or not qualify in future for Pip.

On top of the direct financial hit, disabled people will struggle for visibility in local care systems that use disability benefit awards to deploy support and protection, from housing and council tax relief to debt enforcement safeguards.

Loss of disability benefits means they will lose priority status on council housing waiting lists and will be deprived of priority status in homelessness assessments, leaving them at “greater risk of prolonged homelessness”, the briefing says.