The Department for Work and Pensions (DWP) has announced new weekly payment rates for Personal Independence Payment (PIP), Disability Living Allowance (DLA), and Attendance Allowance, which will take effect from 7 April 2025. Benefits, including Carer’s Allowance, will see a 1.7% increase for the 2025/26 financial year, in line with inflation.
While the adjustment aims to help claimants keep up with rising living costs, some have expressed concerns that the increase may not be enough to cover ongoing financial pressures.
How the New Rates Compare to Current Payments
The 1.7% increase will apply to both daily living and mobility components of PIP, DLA, and Attendance Allowance. This means that people currently receiving between £28.70 and £184.30 per week in support will see their payments rise to between £29.20 and £187.45 per week.
For those receiving PIP or Adult Disability Payment (ADP), the highest awards for both the daily living and mobility components will now total £749.80 per four-week pay period, equivalent to £9,747 per year.
Here’s a breakdown of the updated weekly rates:
PIP, ADP, DLA, and Child Disability Payment
Daily Living Component:
- Lower care award (DLA only) – £29.20 (up from £28.70)
- Standard rate – £73.90 (up from £72.65)
- Enhanced rate – £110.40 (up from £108.55)
Mobility Component:
- Standard rate – £29.20 (up from £28.70)
- Enhanced rate – £77.05 (up from £75.75)
Attendance Allowance
- Lower rate – £73.90 (up from £72.65)
- Higher rate – £110.40 (up from £108.55)
Carer’s Allowance
- New weekly payment – £83.30 (up from £81.90)
- Four-week pay period – £333.20 (up from £327.60)
Additionally, the weekly earnings threshold for Carer’s Allowance in England and Wales will increase from £151 to £196, reflecting changes to the National Living Wage.
Who Benefits Most from the Increase?
The increase will provide additional financial support to people receiving disability benefits and carers, with higher payments helping those on the most severe levels of support.
A successful claim for PIP or ADP provides financial assistance for those with disabilities or long-term health conditions, helping with daily living costs, mobility challenges, and essential expenses.
However, some advocacy groups argue that the 1.7% increase is too small to make a real difference, especially as living costs remain high. Inflation and rising expenses for energy, food, and housing have eroded the value of benefit payments, leading to concerns that claimants may still struggle financially despite the uplift.
What Claimants Should Know About the New Rates
For those already receiving benefits, the new rates will be automatically applied from April 2025, with no need to reapply.
New claimants for PIP, ADP, or DLA will receive the updated rates based on their assessment outcomes. The DWP also reminds applicants that eligibility is determined not by a specific medical condition, but by how their disability or health condition affects daily life and mobility.
With the cost of living crisis continuing, the changes to DWP payment rates will be closely watched to determine whether they provide sufficient financial relief for those who rely on these benefits.
