Millions of people receiving disability benefits in the UK are set for a significant financial boost next spring, with payments due to rise in line with inflation.
Understanding the PIP Payment Increase
The Department for Work and Pensions (DWP) has confirmed that Personal Independence Payment (PIP) rates will increase by 3.8% from April 2025. This uplift follows the government's standard procedure of using September's inflation figure to determine the following year's benefit increases.
The change means that claimants could receive an additional £5.30 per week, which accumulates to approximately £275 over a full year for those on the highest payment tier.
Breaking Down the New Payment Rates
The inflationary adjustment will affect all components of the PIP benefit. For the daily living part of PIP, the lower weekly rate will rise from £73.90 to £77.45, while the higher weekly rate increases from £110.40 to £115.70.
Similarly, mobility component payments will see improvements. The lower mobility rate moves from £29.20 to £30.60 weekly, and the higher mobility rate increases from £77.05 to £80.75 per week.
Wider Impact on Disability Benefits
This 3.8% rise, based on September's Consumer Prices Index (CPI) measure of inflation, applies across several key disability benefits as a legal requirement. Alongside PIP, attendance allowance, disability living allowance, and carer's allowance will all receive the same percentage increase.
The BBC highlighted the significance of this announcement, noting that 'the cost of living is always important to our finances but this month's has a particular extra impact for millions of people.'
While Universal Credit is also linked to September's inflation figure, the government has implemented changes to how its increase is calculated following welfare reforms passed in July. Meanwhile, the state pension continues to be governed by the triple lock system, which will see it rise by 4.8% in April based on earnings growth data.
