Personal Independence Payments (PIP) are on course to rise to a maximum of £800 a month, with new Chancellor John Healey expected to confirm details at his first Budget in October.
The Department for Work and Pensions (DWP) increases benefits each year in line with the CPI inflation rate from the previous September. The inflation figure for July was 2.9%. If that rate holds for September, the main disability benefit would rise to a maximum of £200 a week or £800 a month. The total could climb even higher should inflation rise further next month.
Budget date and new rates
Chancellor John Healey will deliver his first Budget on October 28. Details of benefit payments are expected to be set out then. The new rates will come into effect from April 2027.
Exactly how much someone receives in PIP depends on their circumstances. The benefit is made up of two components: daily living and mobility. There is a higher and lower rate for each, which people can receive depending on their circumstances. The disability benefit is currently worth a maximum of £194 per week.
Future of PIP under review
However, the long-term future of PIP is uncertain. A review on the disability benefit is set to report to the Government in the autumn, ahead of likely changes to who qualifies for payments. Meanwhile, Reform UK has announced plans to replace PIP and drastically scale back support should they get into government.
