The Department for Work and Pensions (DWP) plans to increase Personal Independence Payment (PIP) benefits by 3.8% in April, providing claimants with an additional £5.30 per week. This adjustment follows the latest Consumer Prices Index (CPI) inflation rate announced in September, which stood at 3.8%.
PIP, a benefit aimed at helping with the extra costs of long-term health conditions or disabilities, is divided into different rates. The increase could raise the daily living lower rate from £73.90 to £77.45 per week and the daily living higher rate from £110.40 to £115.70 per week. This translates to an annual increase of about £275 for those on the higher daily living rate.
The mobility component will also see a rise, with the lower rate expected to climb from £29.20 to £30.60, and the higher rate from £77.05 to £80.75 weekly. These adjustments reflect inflation, ensuring that benefits keep pace with the cost of living.
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This inflation-based uprating is a legal requirement for disability-related benefits, including PIP, Attendance Allowance, and Carer’s Allowance. The September CPI inflation figure typically sets the benchmark for benefit increases applied the following April.
Alongside PIP, other benefits linked to the September inflation figure include Universal Credit, although its rate of increase is subject to new rules introduced in recent welfare reforms. Meanwhile, the state pension increase for April is calculated differently, following the “triple lock” system, which ensures a rise based on the highest of 2.5%, inflation, or earnings growth. This year, earnings growth at 4.8% has determined the pension increase.
These adjustments aim to support individuals reliant on disability benefits and pensions in managing the rising costs driven by inflation.