DWP confirms new plans as PIP payments could rise to £194 a week

The Department for Work and Pensions (DWP) has recently shared that plans to reform Personal Independence Payment (PIP) have been postponed. According to the department, the decision will not be taken until a 'comprehensive review' into the current assessment process is completed, expected by next autumn.

Amidst all this, the DWP also confirmed that the disability benefit will continue to increase annually in line with the September inflation rate. The latest figures from the Office for National Statistics (ONS) indicate that the Consumer Prices Index (CPI) inflation rate for August was 3.8 per cent. The inflation rate is now set to be published in mid-October, with the benefit uprating confirmed at the Autumn Budget in November.

If the CPI inflation rate remains steady at 3.8 per cent, people receiving the highest awards of the daily living and mobility components of PIP would see their payments rise from £187.45 per week to £194.55.

Currently, PIP is worth between £29.20 and £187.45 each week, equating to £116.80 or £749.80 every four-week pay period. An uprating of 3.8 per cent would see payments increase to between £121.20 and £778.20 every four-week payment period, reports theDaily Record.

The September Consumer Price Index (CPI) inflation rate, due for release on October 22, will play a key role in determining the upcoming annual uprating of State Pension and benefits.

Gaining insight into how CPI influences these adjustments can help clarify the process ahead of the Autumn Budget, scheduled for November 26.

During this budget announcement, Chancellor Rachel Reeves is expected to confirm the new rates for pensions and benefits.

Meanwhile, recent data from the Department for Work and Pensions (DWP) reveals that over 3.8 million people across Great Britain are currently receiving extra financial support through Personal Independence Payment (PIP), highlighting the scale of assistance provided to those with long-term health conditions or disabilities.

PIP would be paid at the following amounts per week under 3.8 per cent CPI uprating:

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)