Households receiving Personal Independence Payments (PIP) could see their disability benefits rise by up to £312 over the course of a year, according to the latest inflation figures. The UK's main disability benefit is currently under review, and the increase would depend on the Consumer Prices Index (CPI) inflation rate remaining at its current level.
The Department for Work and Pensions (DWP) benefits rise each year in line with the CPI inflation rate from the previous September. The latest inflation figure for July was 2.9%, providing an early indication of how benefits could rise in April next year.
Maximum weekly rate could reach £200
If the September inflation figure matches the July rate of 2.9%, the maximum weekly PIP payment would rise to £200, up from the current £194. Over a full year, this would equate to an additional £312 for vulnerable households.
Payments could rise even higher should inflation spike further before the September figure is confirmed. Chancellor John Healey is expected to set out details of the benefit uprating at his first Budget on October 28.
How PIP payments are calculated
The exact amount someone receives in PIP depends on their individual circumstances. The benefit is made up of two components: daily living and mobility. Each component has a higher and lower rate, which people can receive depending on their needs and the judgement of assessments.
PIP faces a major overhaul next year. A review is set to report to the Government in autumn and is likely to recommend changes over who should qualify for the benefit. It could result in it becoming harder for people with conditions like anxiety and depression to claim money.
