The government has confirmed that Personal Independence Payments (PIP) will increase in line with inflation, with the new rates set to be announced in October. Claimants can expect to receive up to £798 a month, or potentially more if inflation rises further by September.
The Department for Work and Pensions (DWP) benefits are reviewed annually and rise in line with the Consumer Prices Index (CPI) inflation rate from the previous September. For this year, the increase will be confirmed by Chancellor John Healey at the October Budget, which is scheduled for October 28.
Inflation and Payment Increases
The rate of inflation in the 12 months to June was 2.6%, which would result in PIP increases to a maximum of £199 a week or £798 a month. This figure could climb even higher if there is a jump in inflation in September. However, the actual increases will not come into effect until April 2027.
PIP is currently worth a maximum of £194 per week. The disability benefit is made up of two components: daily living and mobility, each with a higher and lower rate, depending on the claimant's circumstances.
Other Benefits and Future Changes
Other benefits such as Universal Credit, Housing Benefit, and Employment and Support Allowance (ESA) will also increase by the same rate. The state pension, however, rises in April based on the separate triple lock mechanism.
PIP is expected to be overhauled next year, with a review concluding that the benefit is not "fit for purpose". This may result in it becoming harder for people with some conditions to access support.
Rising Claim Numbers
Nationally, the number of people in England and Wales claiming PIP has passed four million for the first time. Mental health-related conditions such as anxiety, depression, and ADHD are now the most common reasons for PIP claims.
