The Department for Work and Pensions (DWP) has announced an increase in the amount it pays to claimants of Personal Independence Payments (PIP) for the financial year 2025-2026.
For those qualifying for the maximum allowance, this will bring the total annual benefit to £9,747. The increase follows the annual inflation adjustment, but with significant changes to the system on the horizon.
The government’s ongoing review of welfare provisions includes proposed changes to PIP and Universal Credit, with a focus on tightening eligibility criteria. Despite this, for now, the DWP has confirmed that the current payment structure remains in place, ensuring that millions of people with disabilities or long-term health conditions will continue to receive support.
PIP Payments for 2025-2026
For the coming year, claimants can expect their PIP payments to rise by 1.7% due to inflation. This adjustment raises the maximum monthly amount from £798 to £812.28, bringing the annual total for those receiving both daily living and mobility components to £9,747.40.
The payments consist of two key elements: the daily living component, which is designed to assist with personal care and domestic tasks, and the mobility component, which supports transportation costs for those unable to travel independently.
According to the DWP, individuals with disabilities or severe health conditions could receive up to £110.40 per week for daily living support and £77.05 per week for mobility needs. This increase will directly benefit those already receiving the maximum PIP rates, providing a vital financial lifeline to those facing increased living costs due to their health conditions.
Future Reforms and Potential Impact
However, significant reforms to PIP are on the horizon, with proposed changes set to impact claimants in the coming years. The government has indicated that it may tighten the eligibility criteria, potentially making it harder for some individuals to qualify for daily living assistance.
Under the proposed changes, claimants would need to score at least four points in each daily living activity to qualify for the daily living component. The reform process is part of a broader plan outlined in the Green Paper “Pathways to Work,” published earlier this year.
The report suggests that eligibility for benefits, particularly PIP, may become stricter, with a more rigorous assessment process. Additionally, by 2028, the Work Capability Assessment, currently used to determine eligibility for the health element of Universal Credit, will be scrapped.
This means that those who previously qualified for Universal Credit based on their health condition, but did not meet PIP’s criteria, could lose out on financial support.
