Households receiving Personal Independence Payments (PIP) could see their monthly payments rise to as much as £798 from next April, with the exact figure set to be confirmed in the upcoming October Budget. The increase, which is tied to the Consumer Prices Index (CPI) inflation rate from the previous September, will be announced by Chancellor John Healey as part of the first Budget of Andy Burnham's Government.
How the increase is calculated
Benefits such as PIP, Universal Credit, Housing Benefit, and Employment and Support Allowance (ESA) typically rise in line with the CPI inflation rate recorded in the September prior to the April uprating. If the rate were based on last year's figure of 3.8%, the maximum weekly PIP payment would increase to £202. However, the most recent inflation data for the 12 months to June shows a lower rate of 2.6%, which would translate to £199 per week or £798 per month.
The exact percentage increase will be determined by the September 2026 CPI figure, which is due to be published in October. The Budget, scheduled for October 28, will confirm the final rates for April 2027. This announcement is highly anticipated by the millions of claimants who rely on these payments, as well as by disability advocacy groups.
Broader impact on benefits and pensions
The same inflation-linked increase will apply to other working-age benefits, including Universal Credit and ESA. Meanwhile, the state pension will rise in line with the triple lock, which guarantees an increase of at least 2.5%, average earnings growth, or inflation, whichever is highest. This separate mechanism ensures pensioners receive a different uplift from PIP and other benefits.
The confirmation of these rates comes ahead of a significant overhaul of PIP, which is expected to be announced in the coming months. An interim review, which has already concluded that the disability benefit is no longer fit for purpose, is set to deliver its final findings in November. The benefit is currently paid to around four million people across the UK, and any changes could significantly alter eligibility and payment structures.
Government's position and future outlook
Andy Burnham's Government has signaled its intent to reform the welfare system, with a focus on ensuring benefits are adequate and sustainable. The upcoming Budget will be a key moment for outlining the government's fiscal plans, including any changes to benefit rates and the PIP review's recommendations.
For now, claimants are advised to await the official announcement in October, which will provide clarity on the exact payment increases. The government has emphasized its commitment to supporting disabled people, but also stresses the need for fiscal responsibility. As the review concludes, further details on the future of PIP are expected to emerge, potentially reshaping the disability benefits landscape.
