Millions of households could see Personal Independence Payments (PIP) rise to a maximum of £9,600 a year from next spring, according to latest inflation figures. The disability benefit, paid to over four million Brits, is currently under review, and the exact increase will depend on September's inflation rate.
Inflation and benefit uprating
The Department for Work and Pensions (DWP) benefits rise each year in line with the Consumer Prices Index (CPI) inflation rate from the previous September. The latest inflation figure for July was 2.9%. If that rate remains unchanged for September, PIP would rise to a maximum of £200 a week, which works out to £800 a month or £9,600 annually.
Chancellor John Healey is expected to confirm the details at the Budget in October. Payments could climb even higher should there be a further jump in inflation before the September measure is taken.
Current rates and components
The current maximum PIP rate is £194 per week. 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.
However, the £9,600 figure represents the maximum amount. Exactly how much an individual receives depends on their specific circumstances, and for many people it will be much lower.
Upcoming changes to PIP
Major changes to PIP are expected to happen next year, amid an ongoing review. This could see it become harder for people with certain conditions, such as anxiety and depression, to claim. The review and potential changes come as the government looks to reform the disability benefit system.
The final figure for PIP payments will be confirmed once the September inflation data is published, with the new rates taking effect from April next year.
