The Office for National Statistics (ONS) announced on Wednesday that September’s Consumer Prices Index (CPI) inflation rate was 1.7%, down from 2.2% in August.
This rate is important for millions of people receiving disability benefits like Personal Independence Payment (PIP), Attendance Allowance, and Disability Living Allowance (DLA), as it sets the yearly increase for these benefits starting next April, according to Daily Record.
PIP and ADP Rate Changes Expected in Autumn Budget
Chancellor Rachel Reeves will confirm the new rates for State Pension and benefits in the Autumn Budget on October 30. Many people might not know that, by law, disability benefits must go up each year in line with the CPI rate. This includes Carer’s Allowance and other disability benefits from the DWP.
The Scottish Government is also expected to increase PIP for people in Scotland receiving Adult or Child Disability Payments, aiming to prevent a two-tier benefits system. Benefits went up by 6.7 per cent in April this year, but with the new ONS figures, the increase for the 2025/26 financial year will be much smaller. Even with a 1.7 per cent rise, those on the highest rates of PIP, ADP, or DLA could receive up to £749 per month.
Currently, a successful PIP or ADP claim provides between £28.70 and £184.30 per week in extra financial support. Since payments are made every four weeks, meaning 13 payments in a year, this amounts to between £114.80 and £737.20 each payment period.
Disability Benefits Set for Rate Increases in 2025/26
For the 2025/26 financial year, a 1.7% increase will mean people receiving disability benefits will get between £29.20 and £187.45 per week. This adds up to around £116.80 to £749.80 every four weeks. The top amount of £749.80 is for those getting the highest rates for both the daily living and mobility parts of the benefit. It’s important to note that Attendance Allowance doesn’t include a mobility component.
Here are the estimated new weekly rates for PIP, Adult Disability Payment, Child Disability Payment, and DLA. Most of these benefits are paid every four weeks, so to figure out your total, multiply your weekly amount by four:
- Lower care award (CDP, DLA only): £29.20 (up from £28.70)
- Standard daily living: £73.90 (up from £72.65)
- Enhanced daily living: £110.40 (up from £108.55)
- Standard mobility: £29.20 (up from £28.70)
- Enhanced mobility: £77.05 (up from £75.75)
For Attendance Allowance in 2025/26, the new weekly rates will be:
- Lower rate: £73.90 (up from £72.65)
- Higher rate: £110.40 (up from £108.55)
For Carer’s Allowance, the weekly payment will increase to £83.30 (from £81.90), and for the four-week payment period, it will rise to £333.20 (up from £327.60).
The yearly increase in benefits will be confirmed during the Autumn Budget on October 30. The Scottish Government will announce the increase for devolved benefits by the end of the year.
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