Millions of Britons receiving Department for Work and Pensions (DWP) support are set to receive a larger-than-expected boost to their payments next year. The benefit hikes, confirmed at a rate of 3.8 per cent, will be formally approved in the Labour Party government's Budget this November, following the confirmation of the September inflation figures.
Which Benefits Are Increasing?
The across-the-board increase of 3.8 per cent will be applied to the majority of DWP benefits from next April. This adjustment will impact the finances of households relying on disability and carer support.
Personal Independence Payment (PIP)
PIP, which assists individuals with long-term health conditions or disabilities with daily living expenses, will see its rates rise. The new weekly amounts will be:£114.59 for the higher rate daily living component (up from £110.40) and £76.71 for the lower rate (up from £73.90). The mobility component will increase to £79.98 for the higher rate and £30.31 for the lower rate.
Carer’s Allowance
For those providing at least 35 hours of care per week to a person with a disability, Carer’s Allowance will see its weekly payment rise from £83.30 to £86.47.
Other Disability Benefits
Similar increases will apply to legacy payments. Attendance Allowance and the Disability Living Allowance (DLA) care and mobility components will also rise by 3.8 per cent, aligning with the new PIP rates.
Expert Reaction and Government Stance
While the rise offers some relief, experts caution that it may not be enough. Anna Stevenson, a benefits specialist at the charity Turn2us, described the increase as "a step in the right direction" but highlighted that it follows "decades of erosion." She stated that support "remains at one of its lowest ever levels in real terms and as a proportion of average earnings."
Stevenson added a note of realism for struggling families: "Many households will still struggle to meet basic costs because rents, childcare and energy have risen far faster."
A spokesperson for the Department for Work and Pensions framed the changes within the government's broader strategy: "We’re shifting our focus from welfare to work, skills, and opportunities, so more people can move out of poverty and into good, secure jobs as part of our Plan for Change."
The spokesperson also noted: "We’re also sustaining the main rate of Universal Credit above inflation for the first time and rebalancing the benefit’s rates to reduce the perverse incentives that encourage ill health."
