Introduction to PIP Reforms
The Department for Work and Pensions (DWP) has recently announced that plans to reform Personal Independence Payment (PIP) have been put on hold until a comprehensive review into the current assessment process has been conducted. This review is expected to be completed by next autumn.
What This Means for PIP Claimants
Despite the hold on reforms, the DWP has confirmed that PIP will continue to rise each year in line with the September inflation rate. The latest Office for National Statistics (ONS) figures show that the Consumer Prices Index (CPI) inflation rate for August was 3.8 per cent. If this rate remains the same, people on the highest awards of the daily living and mobility components of PIP could see their payments increase.
Understanding PIP Payments
PIP is currently worth between £29.20 and £187.45 each week, which translates to £116.80 or £749.80 every four-week pay period. An uprating of 3.8 per cent would see payments rise to between £121.20 and £778.20 every four-week payment period. The September CPI inflation rate, due for publication on 22 October, will determine the uprating.
PIP Payment Rate Predictions 2026/27
The predicted PIP payment rates under a 3.8 per cent CPI uprating are as follows:
- 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)
Impact on Claimants and the Autumn Budget
Chancellor Rachel Reeves will confirm the annual State Pension and benefits uprating during the autumn Budget on November 26. New figures published by the DWP earlier this month show that there are now more than 3.8 million people across Great Britain receiving additional financial support through PIP.
Conclusion
In conclusion, while the reforms to PIP have been put on hold, claimants can expect an increase in their payments in line with the September inflation rate. With over 3.8 million people receiving PIP, this increase will provide essential financial support to those who need it. The confirmation of the uprating during the autumn Budget will bring certainty to claimants, allowing them to plan for the upcoming year.
