The Department for Work and Pensions (DWP) has announced a significant financial uplift for millions of disability benefit claimants, confirming that Personal Independence Payment (PIP) rates will increase by 3.8% for the 2026/27 financial year.
Inflation-Linked Increase Confirmed
In a major boost for claimants, the DWP has solidified its policy to raise PIP annually in line with the previous September's Consumer Prices Index (CPI) inflation rate. This commitment ensures that over 3.8 million people receiving the benefit will see their payments keep pace with the rising cost of living.
The confirmed 3.8% uprating is based on the inflation figure from September 2025. This systematic approach provides certainty for individuals and families who rely on these vital payments, allowing them to plan their household budgets with greater confidence ahead of the new financial year in April.
Forecasted Payment Rates for 2026/27
PIP is comprised of two components: a daily living part and a mobility part. Each component has a standard and an enhanced rate. Based on the 3.8% increase, the new weekly payment rates are projected to be as follows.
Daily Living Component:
- Standard rate: Rising from £73.90 to £76.70 per week
- Enhanced rate: Rising from £110.40 to £114.60 per week
Mobility Component:
- Standard rate: Rising from £29.20 to £30.30 per week
- Enhanced rate: Rising from £77.05 to £79.95 per week
Combined Award Calculations
Claimants can receive different combinations of these components. The DWP calculates the total weekly amount based on which rates are awarded. The forecasted weekly amounts for the various combinations are:
- Standard daily living & standard mobility: £107.00
- Enhanced daily living & standard mobility: £144.90
- Standard daily living & enhanced mobility: £156.65
- Enhanced daily living & enhanced mobility: £194.55 (up from £187.45)
Payments are typically made every four weeks, meaning these weekly rates are multiplied by four for each pay period. For example, a claimant on the highest award of both components would receive £778.20 per pay period.
The DWP has stated that it will send formal notification letters to all claimants before April 2026, detailing their individual new payment amounts. It is important to remember that PIP and other disability benefits are tax-free and are not affected by the benefit cap.
