Disability benefits could climb to a maximum of £800 a month under Andy Burnham, according to new indications from inflation data. Details of Personal Independence Payment (PIP) rates for 2027/28 are set to be revealed soon, with the rise potentially taking the top weekly rate to £200.
Inflation rise points to higher PIP rates
The Department for Work and Pensions (DWP) benefits rise each year in line with the CPI inflation rate of the previous September. It was announced that inflation rose to 2.9% in July. If that rate remains the same into September, PIP would rise to a maximum of £200 a week or £800 a month. The amount could increase further should there be a jump in inflation in September.
The hikes to payments won't come into effect until April 2027. Chancellor John Healey will deliver his first Budget in October.
How PIP is structured and current rates
PIP 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.
The benefit is under review by the Labour Government amid uncertainty over its future. Reform UK this week unveiled plans to replace PIP and drastically scale back support.
Other benefits and state pension
Other benefits like Universal Credit, Housing Benefit and Employment and Support Allowance (ESA) also go up in line with CPI inflation. The state pension also rises every April, though payments are based on the separate triple lock.
