Business Wednesday, Sep 17

DWP has confirmed that PIP will continue to rise

The Department for Work and Pensions (DWP) has recently announced that plans to reform the Personal Independence Payment (PIP) have been put on hold until a ‘comprehensive review’ into the current assessment process is completed, expected by next Autumn. However, the DWP also confirmed that the disability benefit will continue to rise each year in line with the September inflation rate.

This is set to be published in mid-October with the benefit uprating confirmed at the Autumn Budget in November. The latest figures from the Office for National Statistics (ONS) show that the Consumer Prices Index (CPI) inflation rate for August was 3.8 per cent.

If the CPI inflation rate remains unchanged at 3.8 per cent, those receiving the highest awards of the daily living and mobility components of PIP would see payments increase from £749.80 every four-week payment period to £778.20, a boost of £28.40.

Currently, PIP is worth between £29.20 and £187.45 each week, some £116.80 or £749.80 every four-week pay period, reports the Daily Record.

An uprating of 3.8 per cent would see payments rise to between £30.30 and £194.55 every week, some £121.20 and £778.20 every four-week payment period.

It’s crucial to bear in mind that the September CPI inflation rate will dictate the uprating. However, understanding the impact of current CPI inflation rates can help simplify the annual uprating process ahead of the Autumn Budget on 26 November.

Predicted PIP payment rates for 2026/27

Under a 3.8 per cent CPI uprating, PIP would be paid at the following weekly amounts:

Daily living

  • Standard rate: £76.70 (from £73.90)
  • Enhanced rate: £114.60 (from £110.40)

Mobility

  • Standard rate: £30.30 (from £29.20)
  • Enhanced rate: £79.95 (from £77.05)

The next ONS CPI inflation rate is due to be published on October 22.

New figures published on Tuesday by the DWP show there are now over 3.8 million people across Great Britain receiving additional financial support through PIP.

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