The Government is expected to announce changes to Personal Independence Payments (PIP) at the October Budget 2026, with specifics on benefit rates and increases for April 2027.
Budget Date Set for 28 October
The first Budget under Andy Burnham's Government has been tentatively pencilled in for 28 October. Specifics relating to benefit payments and the forecast increases for April 2027 are anticipated to be unveiled at that point.
The yearly rate at which benefits rise is ordinarily determined by the CPI inflation figure from September of the previous year. This means new Chancellor John Healey should be prepared to confirm these figures at the late October Budget.
Current PIP Rates and Impact
PIP currently offers up to £194.60 per week. Earlier this year, benefits rose by 3.8% in line with the September 2025 inflation figure. This change will have an impact on other benefits, including Universal Credit, Housing Benefit and Employment and Support Allowance (ESA).
The state pension similarly increases each April, though this rate is worked out using the separate triple lock mechanism. This guarantees the amount rises in line with whichever is greatest amongst inflation, wage growth or 2.5%.
Review of PIP Finds It Not Fit for Purpose
This comes amid an ongoing review into the future of PIP. An interim report has already concluded that the disability benefit, which supports roughly four million people, is no longer fit for purpose. Full recommendations are scheduled to be handed to Burnham and Healey in November, ahead of an expected overhaul of the benefit.
