Millions of people receiving disability and sickness benefits could see their payments increase from April 2027, with new figures indicating a possible 3.5% rise. The estimated rates cover Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance and Employment and Support Allowance (ESA).
The figures follow the publication of September’s inflation data by the Office for National Statistics (ONS). According to the Birmingham Mail, the Labour government has yet to confirm whether it will follow the usual practice of using September’s inflation rate to determine the annual increase in benefits.
New Weekly Rates for PIP, DLA and Attendance Allowance
The proposed increases would affect several benefits designed to support people with disabilities, long-term health conditions or care needs. The figures remain estimates rather than officially confirmed payment rates.
For Personal Independence Payment, the standard daily living component would increase from £76.70 to £79.40 a week, while the enhanced rate would rise from £114.60 to £118.60. These changes represent weekly increases of £2.70 and £4 respectively. The mobility component would also change. The standard rate would rise from £30.30 to £31.35, while the enhanced rate would increase from £80 to £82.80 per week.
Disability Living Allowance would follow a similar pattern. Its middle and highest care rates would increase to £79.40 and £118.60 respectively, while the lowest care rate would reach £31.35. The higher mobility rate would rise to £82.80, with the lower rate listed at £31.15. Attendance Allowance, which provides support for people requiring assistance with personal care, would also see changes.
According to Age UK, the current weekly payment is £76.70 for those needing help during the day or night, and £114.60 for those requiring assistance during both periods. Under the estimated 2027 rates, these amounts would increase to £79.40 and £118.60.
ESA Increases and Wider Changes to Pension Payments
Employment and Support Allowance is another benefit included in the estimated uprating figures. The proposed amounts cover both basic payments and additional components.
For claimants under 25 in the assessment phase, the weekly rate would increase from £75.65 to £78.30. Those aged 25 or over receiving the basic allowance, or claimants in the main phase, would see payments rise from £95.55 to £98.90.
The work-related activity component would increase from £37.95 to £39.30, while the support component would rise from £50.35 to £52.10. The figures come alongside separate discussions about the future of the state pension.
According to the Birmingham Mail, Prime Minister Andy Burnham has previously outlined Labour’s plans to adjust the pension triple lock from April 2030, partly to help fund a proposed National Care Service in England.
Under those plans, the state pension would continue to increase annually by at least Consumer Prices Index inflation or 2.5%. Larger increases could still be permitted in certain years to maintain its value relative to average earnings.
The report also states that state pensions are expected to represent around 30% of average earnings by the end of the decade. For now, the disability and sickness benefit figures remain provisional. The government’s decision on whether to apply September’s inflation rate will determine the official increases for April 2027.
