The UK Department for Work and Pensions (DWP) has confirmed an increase in Personal Independence Payment (PIP) rates by 1.7%, effective from April 2025. This adjustment is designed to keep up with inflation and provide extra financial assistance to individuals with disabilities or long-term health conditions. In September 2024 the inflation rate was confirmed as being 1.7%, according to the consumer price index, meaning rates are going up this month for everyone who claims the benefits. There is also an increase to Universal Credit. These increases are separate to the proposed changes which you may have read about in recent weeks regarding welfare reforms.

PIP consists of two parts:

– Daily Living Component (for help with daily tasks)

– Mobility Component (for help with moving around)

Both components offer Standard and Enhanced rates, which will be updated as follows:

Daily Living Component:

– Standard Rate: Increases from £72.65 to £73.90 per week. 

– Enhanced Rate: Increases from £108.55 to £110.40 per week. 

Mobility Component:

– Standard Rate: Increases from £28.70 to £29.20 per week. 

– Enhanced Rate: Increases from £75.75 to £77.05 per week

The increase will automatically apply to all new and existing PIP claimants. PIP remains tax-free and is not affected by income or savings. Additionally, recipients may qualify for other benefits such as the Blue Badge scheme, Disabled Persons Railcard, and vehicle tax exemptions.

There is also an increase to Universal Credit payments from April 2025.

New Standard Allowance Rates (April 2025)

The standard allowance (the base amount before additional payments or deductions) will rise as follows:

– Single under 25: £311.68 → £316.98 (+£5.30)

– Single 25 or over: £393.45 → £400.14 (+£6.69)

– Joint claimants both under 25: £489.23 → £497.55 (+£8.32)

– Joint claimants, one or both 25 or over: £617.60 → £628.10 (+£10.50)

These increases aim to provide additional financial support in line with inflation and the rising cost of living.